Property Valuation
The cost to cure principle in appraisal states that:
AAll depreciation must be cured before appraisal
BThe value lost from a curable defect generally equals the cost to cure it✓ Correct
CCuring defects always increases value by more than the cure cost
DOnly licensed contractors can estimate cure costs
Explanation
For curable depreciation items, the value lost typically equals (or approximates) the cost to cure. If it costs $5,000 to fix deferred maintenance, the property's value is likely reduced by approximately $5,000. Items where cure cost exceeds value gained are considered incurable.
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