Property Valuation
Physical curable depreciation in an appraisal refers to:
ADamage that is impossible to repair
BDeferred maintenance items that are economically worthwhile to repair✓ Correct
CWear and tear that reduces value but cannot be corrected
DStructural damage caused by earthquakes
Explanation
Physical curable depreciation represents deferred maintenance and repairs that are economically feasible to fix (the cost to cure does not exceed the value added). Examples: peeling paint, broken fixtures, worn carpet—items that should be maintained or repaired.
People Also Study
Related Utah Questions
- The cost to cure principle in appraisal states that:Property Valuation
- A Utah property is being valued using the cost approach. The land is valued at $80,000. The replacement cost of the improvements is $320,000. Total accrued depreciation is $60,000. What is the indicated value?Property Valuation
- Functional obsolescence in an appraisal refers to a loss in value due to:Property Valuation
- In the cost approach, the formula for estimating value is:Property Valuation
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.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
Study This Topic
Practice More Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →