Property Valuation
Curable depreciation in the cost approach refers to:
ADepreciation that cannot be reversed regardless of cost
BDepreciation that is economically worth correcting because the cost is less than the resulting value increase✓ Correct
CPhysical depreciation only
DDepreciation caused by external factors
Explanation
Curable depreciation is a condition where the cost of repair or correction is less than the resulting increase in value — meaning it makes economic sense to fix. For example, outdated carpeting that can be replaced at modest cost.
Related Montana Property Valuation Questions
- When appraising a Billings commercial property, 'gross leasable area' (GLA) refers to:
- In Montana, 'yield capitalization' (discounted cash flow analysis) is most appropriate for:
- In Montana, a 'reconciliation' in an appraisal report is the process by which the appraiser:
- Functional obsolescence in real estate refers to:
- In Montana, 'site value' in an appraisal refers to:
- In Montana, a competitive market analysis (CMA) performed by a real estate licensee is:
- A property has an effective gross income of $95,000 and operating expenses of $38,000. What is the NOI?
- Montana property taxes are calculated by multiplying the taxable (assessed) value by:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →