Property Valuation
A Mississippi appraiser uses the 'cost to cure' method to estimate functional obsolescence in a property. This method is appropriate when:
AThe cost to cure exceeds the loss in value
BThe deficiency is 'curable' — the cost to cure is equal to or less than the resulting increase in value✓ Correct
CAny functional deficiency exists regardless of cost
DOnly for physical deterioration, not functional issues
Explanation
Functional obsolescence is 'curable' when the cost to cure is equal to or less than the resulting increase in market value. If the cure costs more than the value increase, the obsolescence is 'incurable' and must be measured by income loss or paired sales.
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