Property Valuation
When an appraiser says a property has 'curable physical deterioration,' they mean:
AThe property's defects are covered by the seller's warranty
BThe cost to repair the defect is equal to or less than the resulting increase in value✓ Correct
CThe defect must be repaired before closing
DThe property cannot be sold in its current condition
Explanation
Curable physical deterioration refers to deferred maintenance items where it is economically feasible to repair — the cost to cure equals or is less than the increase in value that results from the repair.
Related New York Property Valuation Questions
- In New York, 'functional obsolescence' in a property refers to:
- In New York, the 'principle of substitution' underpins which approach to value?
- In New York, which of the following is an example of 'physical deterioration' that is 'curable' (economically feasible to repair)?
- In New York, an appraiser's adjustments in the sales comparison approach account for differences between the subject property and the comparable sales. An 'upward adjustment' is made when:
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