"Surplus utility" is an example of something called "functional obsolescence". This means that the property has features that are either outdated or have been improved too much. In contrast, "economic obsolescence" refers to conditions outside the property.


These are questions that the above text answers:

1. What is an example of functional obsolescence?
2. How is functional obsolescence defined?
3. What does economic obsolescence refer to?
4. How are functional and economic obsolescence different?
5. What are the features of a property with surplus utility?
7. Can economic obsolescence be caused by factors within the property?
8. What is the impact of functional obsolescence on property values?
9. How does surplus utility affect property values?

The "economic life" of a property is the amount of time it can be expected to produce an income. Its "physical life" is how long the physical building is expected to last. The "actual age" of the property is how many years have passed since it was constructed. The "effective age" is how old the property looks, taking into account its physical condition.


These are questions that the above text answers:

1. What is the definition of the "economic life" of a property?
2. How is the "physical life" of a property defined?
3. What does the "actual age" of a property refer to?
4. How is the "effective age" of a property determined?
5. What factors are considered when determining the "effective age" of a property?
6. What is the relationship between the "economic life" and the "physical life" of a property?
7. How does the "actual age" of a property differ from its "effective age"?
8. Can the "effective age" of a property be different from its "actual age"?
9. How does the "effective age" of a property impact its value?
10. Why is it important to consider the "economic life" of a property in real estate?