Property Valuation
The 'cost to cure' in Pennsylvania appraisal refers to:
AThe cost of all renovation work needed on a property
BThe market cost to remedy a specific curable depreciation item✓ Correct
CThe legal cost to resolve a title defect
DThe remediation cost for environmental contamination
Explanation
Cost to cure is the amount needed to remedy a specific curable depreciation item — replacing a worn roof, updating outdated kitchen fixtures, painting peeling exterior. For curable depreciation to be worth remedying, the cost to cure should not exceed the resulting increase in value (otherwise it is economically incurable).
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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