Real Estate License Exams For Dummies with Online Practice Tests by John A. Yoegel
Author:John A. Yoegel [Yoegel, John A.]
Language: eng
Format: epub
ISBN: 9781119724865
Publisher: Wiley
Published: 2020-10-06T00:00:00+00:00
Over the hill: Physical deterioration (curable and incurable)
Physical deterioration is the normal wear and tear that a building experiences as it ages, and it depends on the original quality of construction and the level of ongoing maintenance. The two categories of deterioration, curable and incurable, have more to do with economics than the actual physical possibility of correcting something. As part of applying the cost approach, the appraiser analyzes these items:
Curable deterioration: Refers to a form of deterioration thatâs economically feasible to repair. In other words, the increase in value exceeds the cost of repair. Painting is a good example of something that generally adds more value than it costs.
Incurable deterioration: If the cost of repairing an item surpasses the value it adds to the structure, the item is considered incurable even if you can fix it. Usually these forms of deterioration are physical items associated with the structure of a building â significant foundation repairs probably would be classified as incurable. Theyâre incurable because you wouldnât benefit economically by fixing them
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