What does the term 'curable physical depreciation' refer to?

The term 'curable physical depreciation' specifically refers to those physical detriments that detract from a property's value but can be remedied through repairs or improvements. This means that if the costs associated with repairing or replacing the deteriorated elements of the property are less than the increase in market value those repairs would create, it is considered curable.

For instance, if a property has a leaky roof that can be repaired at a relatively low cost compared to the overall market value of the home, then this depreciation is curable. The potential increase in value as a result of such repairs justifies the expense. This concept is crucial for appraisers as it helps determine if investing in repairs makes financial sense and contributes positively to property valuation.

On the other hand, time-related decline in property value encompasses broader factors like wear and tear over time, while losses in value due to market changes or potential losses in selling price refer to external economic conditions or changes in buyer demand, which do not fit the definition of curable physical depreciation.