Property Valuation
Which of the following would be considered 'curable physical deterioration'?
AA cracked foundation requiring $80,000 in repairs
BA worn carpet that costs $3,000 to replace and adds $3,000 to value✓ Correct
CExternal economic obsolescence from a nearby industrial site
DA floor plan with poor traffic flow
Explanation
Curable physical deterioration is deferred maintenance where the cost to repair is economically justified (the value added equals or exceeds the repair cost). Replacing worn carpet for $3,000 that adds $3,000 in value is curable.
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