- Official section
- National III: Valuation
- Broker weight
- 8% of the national broker portion
- Expected scored items
- Valuation accounts for about 8 of 100 items
Illinois exam glossary
Functional obsolescence
A feature does not become obsolete because an appraiser dislikes it. Functional loss appears when the property works less effectively than the market expects, or when an excessive feature consumes cost without earning a matching contribution. The market decides the penalty, and economic feasibility decides whether a cure makes sense.
Last updated: August 1, 2026
What does this exam area cover?
Short answer: Functional obsolescence is value loss caused by an internal design, feature, capacity, layout, or utility problem. It may be a deficiency or a superadequacy and may be curable or incurable. Curability is an economic test, not merely a construction question. Appraisers measure the market-supported loss through methods such as cost to cure, paired sales, market extraction, operating-cost analysis, or capitalization of income loss, while avoiding overlap with physical and external depreciation.
This guide follows the current Illinois appraiser statute and agency resources, USPAP access from The Appraisal Foundation, the PSI Illinois exam outline, and Fannie Mae cost and adjustment guidance published through June 3, 2026, all checked through August 1, 2026. Fannie Mae's pass-through-bedroom example is a lender-review consistency illustration, not a universal fixed-dollar adjustment. The amount and curability of functional loss depend on the subject, market, rights, effective date, cost basis, intended use, and credible assignment evidence.
What is on the official outline?
- Topic
- Find the source of the loss
- What to know
- Inside property, design, feature, absence, excess, capacity, layout, utility, building system, use, market standard, external cause, physical condition, effective date, and value effect
- Best exam move
- If the cause lies within the property and affects usefulness or market appeal, test functional obsolescence.
- Topic
- Identify a deficiency
- What to know
- Missing feature, inadequate feature, poor arrangement, insufficient capacity, low ceiling, too few fixtures, obsolete electrical service, limited parking design, narrow bay, access problem, privacy loss, and inefficient circulation
- Best exam move
- A deficiency means the property provides less utility than the competitive market expects.
- Topic
- Identify a superadequacy
- What to know
- Excess quality, oversized system, overbuilt foundation, luxury finish, unnecessary height, excessive capacity, specialized installation, owner preference, cost above contribution, excess operating cost, and limited buyer demand
- Best exam move
- The loss is not the whole feature cost; it is the unsupported excess after market contribution is considered.
- Topic
- Separate taste from market evidence
- What to know
- Personal preference, fashion, color, dated appearance, buyer pool, paired sale, rent, marketing time, concession, renovation behavior, competing standard, demand, and measurable reaction
- Best exam move
- An unusual feature needs evidence of market penalty before it becomes measurable obsolescence.
- Topic
- Compare existing and modern utility
- What to know
- Replacement property, equivalent utility, modern code, energy use, accessibility, layout, ceiling height, loading, room relationship, equipment, technology, operating efficiency, flexibility, and adaptability
- Best exam move
- Functional analysis asks how effectively the existing improvement serves the use compared with a competitive modern substitute.
- Topic
- Test legal and physical feasibility
- What to know
- Zoning, building code, permit, structural feasibility, fire separation, accessibility, utilities, footprint, setback, easement, common element, historic restriction, tenant rights, and construction access
- Best exam move
- A proposed cure is not real if law, structure, ownership rights, or site constraints prevent it.
- Topic
- Test economic curability
- What to know
- Cost to cure, value added, rent increase, expense saving, remaining life, market demand, demolition cost, salvage, downtime, leasing cost, risk, timing, and supported feasibility
- Best exam move
- Curable means the supported benefit justifies the total cure burden, not that a contractor can perform the work.
- Topic
- Analyze deficiency requiring addition
- What to know
- Missing bathroom, absent air conditioning, insufficient loading door, missing elevator, additional fixture, new component, direct cost, indirect cost, entrepreneurial incentive, value benefit, and market expectation
- Best exam move
- Include all relevant cure costs and compare them with the market-supported contribution of adding the missing utility.
- Topic
- Analyze deficiency requiring substitution
- What to know
- Obsolete system, replacement, removal cost, existing component, salvage, new component cost, indirect cost, downtime, operating saving, remaining life, market contribution, and no double counting
- Best exam move
- Replacing an existing item involves more than the new item's sticker price; track removal, salvage, remaining value, and total benefit consistently.
- Topic
- Analyze incurable deficiency
- What to know
- Structural constraint, narrow floor plate, ceiling height, permanent room relationship, limited expansion, excessive cure cost, rent loss, operating loss, paired sale, capitalization, remaining economic life, and market extraction
- Best exam move
- Measure the market penalty even when correction is economically unreasonable.
- Topic
- Analyze curable superadequacy
- What to know
- Removable excess, conversion, salvage, lower operating cost, demolition, alternate use, market value gain, cost of change, ownership control, and economic feasibility
- Best exam move
- Removing an excess feature is curable only when the total benefit supports the change.
- Topic
- Analyze incurable superadequacy
- What to know
- Embedded excess, overbuilt structure, luxury material, oversized system, unrecoverable cost, contributory value, depreciated excess cost, remaining life, operating penalty, buyer resistance, and market extraction
- Best exam move
- Do not deduct full original cost; estimate the current unsupported excess under the chosen cost and market basis.
- Topic
- Use paired market evidence
- What to know
- Comparable sale, similar property, feature difference, other adjustment, price reaction, repeat evidence, sample size, time, location, condition, rights, and transaction verification
- Best exam move
- A reliable pair isolates the functional difference rather than attributing every price gap to one feature.
- Topic
- Capitalize income or expense loss
- What to know
- Rent shortfall, occupancy loss, operating cost penalty, NOI effect, capitalization rate, duration, temporary loss, permanent loss, present value, remaining life, tenant demand, and consistent rate
- Best exam move
- Translate the functional problem into annual NOI only when the amount, duration, and capitalization method are supported.
- Topic
- Use market extraction
- What to know
- Sale price, land value, cost new, physical loss, external loss, improvement contribution, residual functional loss, multiple sales, effective age, cost basis, and reconciliation
- Best exam move
- Residual methods require credible estimates for every component removed before the functional loss remains.
- Topic
- Coordinate replacement cost
- What to know
- Equivalent modern utility, reproduction duplicate, obsolete material, omitted feature, cost new basis, built-in functional loss, separate deduction, superadequacy, design difference, and double counting
- Best exam move
- Know which obsolete elements the replacement-cost estimate already avoids before deducting functional loss separately.
- Topic
- Coordinate the sales grid
- What to know
- Comparable selection, functional similarity, adjustment, market reaction, condition, quality, gross living area, room count, utility, bracketing, price effect, and reconciliation
- Best exam move
- A functional issue may affect both cost and sales analysis, but each approach must explain it without forcing the same dollar shortcut.
- Topic
- Separate physical and external loss
- What to know
- Wear, deferred maintenance, internal design, off-site nuisance, market oversupply, causal source, mixed cause, cure, ownership control, value impact, and allocation
- Best exam move
- Classify by cause, then reconcile when one property problem contains physical, functional, and external components.
- Topic
- Document the conclusion
- What to know
- Observed feature, market standard, evidence, method, assumptions, cost source, income source, rate, curability test, calculation, uncertainty, reconciliation, workfile, and report consistency
- Best exam move
- Name the feature, explain why the market penalizes it, show how the loss was measured, and state why cure is or is not economical.
Which distinctions produce the most mistakes?
- Terms
- Functional vs. physical depreciation
- Difference
- Functional obsolescence comes from internal design, feature, capacity, or utility. Physical deterioration comes from wear, damage, age, or maintenance condition.
- Question cue
- How it works versus what condition it is in.
- Terms
- Functional vs. external obsolescence
- Difference
- Functional obsolescence originates within the property. External obsolescence originates outside the property or ownership control.
- Question cue
- Inside source versus outside source.
- Terms
- Deficiency vs. superadequacy
- Difference
- A deficiency provides too little utility or an inferior arrangement. A superadequacy provides more cost, quality, or capacity than the market supports.
- Question cue
- Too little or poorly arranged versus too much.
- Terms
- Physical possibility vs. economic curability
- Difference
- Physical possibility means construction can make the change. Economic curability means the supported benefit justifies all costs, time, and risk of making it.
- Question cue
- Can it be built versus should it be built.
- Terms
- Cost to cure vs. value loss
- Difference
- Cost to cure is the expenditure needed for correction. Value loss is the market penalty, which can be less than, equal to, or greater than the simple construction cost.
- Question cue
- Correction expense versus market reaction.
- Terms
- Replacement cost vs. reproduction cost
- Difference
- Replacement cost creates equivalent modern utility and can omit some obsolete features. Reproduction cost duplicates the existing design and can include them in cost new.
- Question cue
- Modern substitute versus virtual duplicate.
- Terms
- Curable deficiency vs. incurable deficiency
- Difference
- A curable deficiency can be corrected for an economically justified total cost. An incurable deficiency has an unsupported cure burden or a practical constraint.
- Question cue
- Supported correction versus uneconomic correction.
- Terms
- Curable superadequacy vs. incurable superadequacy
- Difference
- A curable excess can be removed or converted with a supported net benefit. An incurable excess is uneconomic to remove or embedded in the improvement.
- Question cue
- Economically removable versus economically embedded.
- Terms
- Dated style vs. measurable obsolescence
- Difference
- Dated style is an observation. Measurable obsolescence requires evidence that the feature reduces utility, income, price, or marketability under the assignment.
- Question cue
- Description versus supported value effect.
- Terms
- Superadequacy vs. high quality
- Difference
- High quality can be fully supported by the market. A superadequacy exists only when cost or capacity exceeds the market contribution.
- Question cue
- Desirable quality versus unsupported excess.
- Terms
- Permanent vs. temporary functional loss
- Difference
- Permanent loss is expected through the relevant remaining life. Temporary loss ends after a supported period, lease event, cure, or market change and requires time-limited measurement.
- Question cue
- Ongoing penalty versus finite penalty.
- Terms
- Functional adjustment vs. functional depreciation
- Difference
- A sales-grid adjustment compares a comp's functional utility with the subject. Functional depreciation is the cost-approach loss attributed to internal obsolescence.
- Question cue
- Comparable price adjustment versus cost-new deduction.
The U-S-E-D functional test
- Utility gap: identify the internal feature, layout, deficiency, or excess and compare its actual service with what competitive buyers or tenants expect from a modern substitute at the effective date.
- Source and scope: distinguish functional loss from physical condition and external influence, define the affected property interest and use, and determine whether the issue changes price, rent, expense, occupancy, risk, or marketability.
- Economic cure: test legal and physical feasibility, total construction and indirect cost, removal, salvage, downtime, remaining value, income improvement, expense saving, value benefit, owner control, and remaining economic life.
- Evidence and estimate: use paired sales, cost to cure, replacement or reproduction analysis, market extraction, rent or NOI loss, operating-cost penalty, capitalization, or supported qualitative comparison without false precision.
- Deduct once and defend: coordinate cost basis, physical loss, external loss, sales adjustments, and income effects, prevent double counting, document curable or incurable classification, and reconcile the result with market behavior.
- Type
- Deficiency
- Question
- Does the property provide too little or arrange it poorly?
- Example
- Missing bath, pass-through bedroom, inadequate system
- Type
- Superadequacy
- Question
- Does it provide unsupported excess cost or capacity?
- Example
- Overbuilt lobby, oversized plant, luxury finish
- Type
- Curable
- Question
- Does supported benefit justify total correction burden?
- Example
- Add expected fixture for less than value gain
- Type
- Incurable
- Question
- Is correction uneconomic or impractical?
- Example
- Raise all structural ceilings in an older building
- Type
- Income method
- Question
- Does the issue change rent, expense, or occupancy?
- Example
- Capitalize supported NOI penalty
- Type
- Market method
- Question
- Do comparable prices reveal buyer reaction?
- Example
- Paired sales or market extraction
How do the rules work in scenarios?
A pass-through bedroom reduces utility
Scenario: The only route to the second bedroom runs through the first bedroom. Comparable buyers pay less because privacy and circulation are inferior.
- The cause is the internal floor plan, not wear or an outside nuisance.
- The property provides less utility than competitive homes.
- The appraiser tests whether reconfiguration is feasible and economically supported, then measures the market loss.
Answer: Classify the layout penalty as functional obsolescence and test curability with complete cost and value evidence.
A missing bathroom may be curable
Scenario: Competitive four-bedroom homes typically have two baths. The subject has one. Adding a legal second bath costs $28,000 and supported paired evidence indicates a $40,000 value gain.
- The missing expected feature is a functional deficiency.
- Law, structure, and site permit the addition.
- The supported benefit exceeds the simplified total cure cost.
Answer: Treat the deficiency as curable under the stated evidence and measure it consistently with the chosen method.
A physically possible cure is uneconomic
Scenario: Raising an older warehouse roof to modern clear height would cost $1.4 million, create long downtime, and add only $600,000 in supported value.
- The low clear height is an internal utility deficiency.
- Construction may be physically possible.
- The market benefit does not justify the total cure burden.
Answer: Classify the functional deficiency as economically incurable under the stated facts.
An overbuilt lobby is a superadequacy
Scenario: A neighborhood office building contains a marble atrium that adds $420,000 to current reproduction cost but only $90,000 to supported market value.
- The feature exceeds what typical users require.
- The full $420,000 is not automatically the loss because the market recognizes $90,000 of contribution.
- Removal may be uneconomic, so the current unsupported excess requires an incurable-superadequacy analysis.
Answer: Measure the supported excess cost after contribution and depreciation analysis, not the feature's entire cost automatically.
Capitalize an operating-cost penalty
Scenario: An obsolete building system creates a supported permanent excess operating expense of $24,000 per year. The applicable rate for the loss is 10 percent under the simplified facts.
- The source is an internal building-system inefficiency.
- $24,000 / 0.10 = $240,000 indicated loss.
- The analyst must confirm duration, cure feasibility, income basis, and rate before relying on the result.
Answer: The indicated functional loss is $240,000 under the stated assumptions.
A worn obsolete system contains two losses
Scenario: An old HVAC system is near the end of physical life and also consumes far more energy than competitive modern systems.
- Remaining-life loss is physical deterioration.
- Excess energy use can be functional obsolescence.
- Replacement-cost, cure, salvage, and operating-savings analysis must prevent overlap between the two deductions.
Answer: Separate physical condition from functional inefficiency and reconcile them without double counting.
An unusual color is not enough
Scenario: A seller chose uncommon interior colors, but competitive sales show no measurable price or marketing penalty and repainting is typical buyer preference work.
- Unusual appearance is an observation.
- The assignment needs evidence of a market value effect.
- Personal dislike cannot create an unsupported depreciation deduction.
Answer: Do not claim measurable functional obsolescence without market evidence of reduced utility or value.
What are the common exam traps?
- Trap
- Calling every old feature functionally obsolete
- Correction
- Age can indicate physical deterioration; functional loss requires an internal utility or market-standard problem.
- Trap
- Calling every unusual feature obsolete
- Correction
- Show that market participants penalize utility, price, rent, expense, occupancy, or marketability.
- Trap
- Calling a highway an internal problem
- Correction
- Highway influence originates outside the property and is external obsolescence.
- Trap
- Assuming a contractor's cure proves curability
- Correction
- Physical possibility is not economic feasibility; compare all costs and risks with supported benefit.
- Trap
- Deducting full original feature cost
- Correction
- Use current cost and market contribution under the effective-date analysis, with depreciation and salvage handled consistently.
- Trap
- Treating high quality as superadequacy
- Correction
- High quality is not obsolete when buyers support its cost and contribution.
- Trap
- Assuming all deficiencies are curable
- Correction
- Structural constraints, downtime, law, rights, and excessive cost can make a deficiency incurable.
- Trap
- Assuming all superadequacies are incurable
- Correction
- Conversion or removal can be curable when total supported benefit exceeds burden.
- Trap
- Using replacement cost and deducting twice
- Correction
- Determine which obsolete elements the modern replacement estimate already excludes before a separate deduction.
- Trap
- Confusing condition and utility
- Correction
- Peeling paint is physical; poor room arrangement is functional; both may exist in one property.
- Trap
- Capitalizing a temporary loss forever
- Correction
- Match the valuation method to the supported duration and timing of the income penalty.
- Trap
- Using one comp pair without isolation
- Correction
- Control for rights, location, date, condition, size, quality, and transaction differences before attributing a price gap.
- Trap
- Ignoring indirect cure costs
- Correction
- Permits, design, demolition, downtime, leasing, financing, and risk can affect the total economic burden.
- Trap
- Calling zero adjustment zero analysis
- Correction
- A zero should follow evidence that the difference causes no measurable market reaction, not oversight.
- Trap
- Forgetting report consistency
- Correction
- Improvement description, sales adjustments, income analysis, and cost depreciation should tell one coherent story.
Can you answer these original practice questions?
These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.
1. What causes functional obsolescence?
- An internal design, feature, capacity, or utility problem
- Only normal paint wear
- Only a neighboring highway
- Mortgage interest
Show answer and explanation
Answer: An internal design, feature, capacity, or utility problem
Physical condition and outside influences belong to different depreciation categories.
2. A pass-through bedroom is usually what type of issue?
- Functional obsolescence
- External obsolescence
- Tax depreciation
- Land appreciation
Show answer and explanation
Answer: Functional obsolescence
The internal layout reduces privacy, circulation, and competitive utility.
3. What is a superadequacy?
- A feature whose excess cost or capacity is not fully supported by the market
- Any high-quality feature
- A missing bathroom
- A nearby nuisance
Show answer and explanation
Answer: A feature whose excess cost or capacity is not fully supported by the market
Quality becomes a superadequacy only when contribution fails to support the excess.
4. What determines economic curability?
- Whether supported benefit justifies total cure burden
- Whether a contractor can quote the work
- Whether the owner dislikes the feature
- Whether the building is old
Show answer and explanation
Answer: Whether supported benefit justifies total cure burden
The analysis includes legal and physical feasibility, cost, downtime, risk, value gain, and operating effects.
5. Which is external rather than functional?
- Noise from a new adjacent highway
- Too few bathrooms
- A pass-through bedroom
- An oversized heating plant
Show answer and explanation
Answer: Noise from a new adjacent highway
The source lies outside the property and ownership control.
6. An obsolete system creates a permanent $20,000 NOI loss. At 10 percent, what is the indicated loss?
- $200,000
- $2,000
- $20,000
- $2,000,000
Show answer and explanation
Answer: $200,000
$20,000 / 0.10 = $200,000 under the simplified capitalization facts.
7. Which statement about replacement cost is correct?
- It can avoid reproducing some obsolete features but may not remove all functional loss
- It duplicates every historic feature
- It makes market evidence unnecessary
- It equals land value
Show answer and explanation
Answer: It can avoid reproducing some obsolete features but may not remove all functional loss
The existing property's layout, excess, or operating inefficiency can still create market loss.
8. A dated color has no measurable market penalty. What is the best conclusion?
- Do not claim unsupported functional obsolescence
- Deduct full repainting cost automatically
- Call it external obsolescence
- Depreciate the land
Show answer and explanation
Answer: Do not claim unsupported functional obsolescence
Personal preference is not a market value conclusion.
9. What must be prevented when physical wear and functional inefficiency affect the same system?
- Double counting
- Market verification
- Effective-date analysis
- Cost support
Show answer and explanation
Answer: Double counting
The analyst separates condition loss from utility loss and reconciles overlapping methods.
10. What does current Fannie Mae guidance illustrate with a pass-through bedroom?
- The cost approach should reflect functional depreciation consistently with the improvement analysis
- Every such home loses the same dollar amount
- The issue is always curable
- The home cannot be appraised
Show answer and explanation
Answer: The cost approach should reflect functional depreciation consistently with the improvement analysis
The example supports internal consistency, not a universal adjustment amount or cure conclusion.
How should you study this area?
- Session
- Session 1
- Focus
- Find the source
- Proof you are ready
- Classify 50 facts as physical, functional, or external and identify the internal feature behind every functional example.
- Session
- Session 2
- Focus
- Separate deficiency and excess
- Proof you are ready
- Classify 30 internal issues as deficiency or superadequacy and state the competitive utility standard each fails.
- Session
- Session 3
- Focus
- Test curability
- Proof you are ready
- Evaluate legal feasibility, physical feasibility, total cost, value gain, rent change, operating savings, downtime, risk, and owner control for 20 cures.
- Session
- Session 4
- Focus
- Measure the loss
- Proof you are ready
- Complete five cost-to-cure, five paired-sale, five market-extraction, and five income-loss problems with consistent units and dates.
- Session
- Session 5
- Focus
- Stop double counting
- Proof you are ready
- Audit 15 cases for overlap among replacement cost, physical loss, functional loss, external loss, sales adjustment, and income capitalization.
- Session
- Session 6
- Focus
- Run U-S-E-D
- Proof you are ready
- Write two complete functional-obsolescence analyses, reconcile them with market evidence, then score at least 90 percent and explain every miss.
Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.
Practice the topic in Pass Illinois
From concept to decision
Drill this topic, then review the explanation
Pass Illinois gives you original national and Illinois questions, topic-by-topic study, clear explanations, timed practice, flashcards, progress tracking, and Math Coach. Start free, find the weak distinction, and focus the next session there.
Questions students ask about Functional Obsolescence: Illinois Exam Guide
What is functional obsolescence in real estate?
Functional obsolescence is a loss in value caused by a feature, design, layout, capacity, or utility problem within the property. It can arise from a deficiency, such as too few bathrooms, or a superadequacy, such as finishes far beyond what the market supports. The loss is measured by market reaction, not personal taste alone.
What is an example of functional obsolescence?
A bedroom that can be reached only by walking through another bedroom is a classic example because the layout reduces privacy and utility. Current Fannie Mae cost-approach guidance uses that pass-through-bedroom condition as an example where a lender should expect the appraisal's functional depreciation analysis to be consistent with the improvement description.
What is a functional deficiency?
A functional deficiency is the absence, inadequacy, or poor arrangement of a feature the market expects. Examples can include an inadequate electrical system, too few bathrooms, poor circulation, insufficient loading capacity, low ceiling height, or an inefficient floor plan. A deficiency is not automatically curable merely because construction could change it.
What is a superadequacy?
A superadequacy is a feature that exceeds what the market requires and costs more than its contribution to value. Examples can include an oversized institutional heating plant in a small building or luxury finishes in a market that will not pay for them. High quality alone is not obsolescence; the unsupported excess is the issue.
When is functional obsolescence curable?
It is curable when a feasible correction is economically justified by the value benefit or operating savings it creates, using market-supported assumptions. The analyst considers cost to cure, demolition or removal, salvage, remaining value of existing items, revenue or expense change, and buyer reaction. A physically possible remodel can still be economically incurable.
Can a superadequacy be curable?
Sometimes, but often removal is not economical. If an excessive feature can be removed or converted for less than the value benefit or operating savings, it may be curable. If removal destroys useful property or costs more than buyers would recognize, the superadequacy is generally treated as incurable under that market evidence.
Is an old kitchen automatically functionally obsolete?
No. Age or dated appearance alone does not establish measurable functional loss. The analyst asks whether the kitchen's design, capacity, equipment, layout, or utility differs from market expectations and whether buyers pay less because of it. Worn cabinets may be physical deterioration, while an inefficient layout can be functional obsolescence. Both can exist together.
How is functional obsolescence measured?
Depending on the property and evidence, it can be measured through cost to cure, paired sales, market extraction, rent or NOI loss capitalization, operating-cost penalty, replacement-cost analysis, or a breakdown method. The analyst must avoid double counting a loss already reflected in replacement cost, physical depreciation, external obsolescence, or another adjustment.
Does replacement cost eliminate all functional obsolescence?
No. Replacement cost can avoid reproducing some obsolete materials or design features because it prices an equivalent modern substitute. The existing property may still have a poor layout, deficiency, excess operating cost, or superadequacy that buyers penalize. The cost basis and the separate depreciation analysis must be reconciled to avoid omission or duplication.
How is functional obsolescence different from external obsolescence?
Functional obsolescence originates within the property, even when market preferences reveal the loss. External obsolescence originates outside the property or ownership control, such as highway noise, incompatible neighboring use, or market oversupply. The source, not just the effect on value, determines the category.
Are these official PSI questions or an appraisal?
No. The questions are original, and primary sources were checked through August 1, 2026. This is exam education, not an appraisal, renovation budget, engineering analysis, or investment recommendation. A live conclusion requires inspection, plans, legal use, local costs, market sales, income evidence, effective-date conditions, and qualified professional judgment.
Primary sources
- PSI Illinois Candidate Information Booklet effective June 24, 2026
- 225 ILCS 458, current Illinois Real Estate Appraiser Licensing Act of 2002
- Illinois Department of Financial and Professional Regulation, current Real Estate Appraisal licensing resources
- The Appraisal Foundation, current 2024 Uniform Standards of Professional Appraisal Practice access
- Fannie Mae Selling Guide B4-1.3-10 published through June 3, 2026, current cost-approach consistency and functional-depreciation example
- Fannie Mae Selling Guide B4-1.3-09, current requirement for market-supported property adjustments
The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.
Editorial status
Checked against primary sources
The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.