When Priya inspects a 12-year-old house in March 2026, she notes peeling interior paint and badly worn carpet in an otherwise sound dwelling. Which classification best fits these items in the cost approach?
Correct Answer
B) Curable physical deterioration because the items are typically economical to fix
Peeling paint and worn carpet are common examples of curable physical deterioration. They are physical items on the property, and the cost to repair or replace them is usually economically justified in relation to the value gained.
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More Valuation Market Analysis Questions
A buyer in Rochester is pre-approved for a conventional mortgage and wants to purchase a co-op apartment. What should the buyer's agent explain about financing a co-op purchase in New York?
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When appraising co-op apartments in New York, all of the following factors must be considered due to their unique ownership structure EXCEPT:
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Previous Question
During a July 2026 inspection, Appraiser Ben sees a dwelling where one bedroom can be reached only by walking through another bedroom. Which form of depreciation does that design problem most clearly illustrate?
Next Question
On a July 2026 assignment, Appraiser Omar estimates a property's replacement cost new at $450,000. He estimates accrued depreciation at 18% of the improvements, and the site value is $110,000. What is the indicated value by the cost approach?