Define the term "functional utility" in appraisal.

Functional utility in appraisal refers to the ability of a property to serve its intended purpose effectively. This concept emphasizes the practical application and usability of the property's features based on its design and layout. For example, a residential property should adequately accommodate a family’s living requirements, while a commercial property should effectively facilitate business operations.

Understanding functional utility is crucial for appraisers because it directly influences how a property is perceived in the market and subsequently its value. A property that is well-suited for its intended use is considered more valuable than a similar property that lacks this functionality.

In contrast, choices that focus solely on structural integrity, aesthetic appeal, or market appeal do not capture the essence of functional utility, as they address different aspects of property valuation. Structural integrity relates to the physical condition of a building, aesthetic appeal deals with its visual attractiveness, and market appeal refers to the overall desirability of a property based on various external factors. While all these elements can impact a property's value, none of them specifically define how well a property serves its primary intended use like functional utility does.