Incurable Depreciation
Depreciation not economically feasible to correct — short-lived components not yet worth replacing, structural deficiencies whose cure exceeds the value gained, and most external obsolescence.
Related Terms
Curable Depreciation
Depreciation economically worth fixing: the cure costs no more than the value it restores.
External Obsolescence
A loss in property value caused by factors external to the property, such as a busy highway, industrial proximity, declining neighborhood, or unfavorable zoning changes.
Accrued Depreciation
The total loss in value from all causes — physical deterioration, functional obsolescence, and external obsolescence — measured as the difference between cost new and the improvements' current contributory value..
More in Valuation Approaches
View allSales Comparison Approach
A valuation method that estimates a property's value by comparing it to similar properties that have recently sold in the same market area.
Cost Approach
A valuation method that estimates value by calculating the cost to reproduce or replace the improvements, subtracting accrued depreciation, and adding the land value.
Income Approach
A valuation method that estimates a property's value based on the income it generates or is expected to generate.
Market Value
The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus..