A house that is physically sound but has outdated kitchen and bathroom fixtures is an example of what?

The situation described in the question highlights a property that is structurally sound but has features that are no longer in style or function effectively for contemporary needs, specifically in the kitchen and bathroom. This scenario exemplifies functional obsolescence.

Functional obsolescence occurs when a property has less utility due to outdated design or features that no longer meet the expectations or demands of the market. In this case, while the house stands firm and sound in its structure, the outdated kitchen and bathroom fixtures do not serve the current preferences for aesthetics, efficiency, or convenience. Buyers often perceive these shortcomings as detracting from the value of the property, which demonstrates the economic impact of functional obsolescence on real estate.

Overall, understanding functional obsolescence is critical for appraisers, as it affects property valuation significantly, especially when assessing homes in a competitive market where buyers lean towards modern amenities and finishes.