What is the term for a flaw in construction, materials, or design?

Functional obsolescence refers to a loss in value of a property due to a flaw that affects its intended use or function. This term is commonly applied in the realm of real estate appraisal and property assessment when evaluating properties. It encompasses issues that may not necessarily be tied to the physical structure but rather to how well the property meets current market demands or user needs.

For instance, if a home has outdated electrical systems that do not meet modern standards, this could be seen as functional obsolescence. Similarly, a design feature that was popular in the past but is now seen as impractical could also contribute to this type of obsolescence.

In contrast, while the other terms such as structural impairment, design defect, and construction flaw denote specific types of issues, they do not encapsulate the broader implications of how those issues impact usability and market value like functional obsolescence does. Therefore, the term you chose highlights the importance of understanding not just the physical aspects of a property, but also how its design and functionality align with current consumer expectations.