A house has been on the market for months due to a floor plan issue. What is this issue known as?

The issue described is known as functional obsolescence. This term refers to a decrease in a property's value due to factors that affect its usability or desirability. In this case, the floor plan issue creates a barrier to potential buyers' interests, making the house less appealing despite potentially being structurally sound. Functional obsolescence can arise from outdated designs, poor layout, or features that no longer meet current buyer expectations.

Understanding this concept is crucial for real estate professionals, as they must recognize how these factors influence marketability and property valuation. By identifying functional obsolescence, sellers can make informed decisions about potential renovations or pricing strategies to attract buyers.