Incurable Depreciation
Definition of "Incurable depreciation"
Occurs when the cost of repairing a component of a building structure exceeds the value of the structure and is therefore uneconomical to perform. For example, because of extensive settling, the foundation of an old home crumbled and had to be replaced. However, the cost of replacing the foundation with the structure on it exceeded the value of the structure. Therefore, it was considered incurable depreciation and the building was condemned and razed.
When purchasing a property that is in need of a lot of work, it is a good idea to have a surveyor, engineer and contractor assess the amount and cost of the work to know the true value of the property.
Popular Real Estate Terms
Once of a set of timbers used in the construction of a building or for esthetic purpose, the land around a property for beautification. ...
Effective Age is the counterpart to a property’s Actual Age. While the former refers to the date a property was built, the latter is more of a sensorial depiction of its age; the age ...
One of the many Inflation definitions can be put into these simple words: the result of the general increase in prices over a period expressed as a percentage. Inflation is controlled by ...
In order to define the rate of return on investment, or more commonly known as ROI we are also going to explain how it can be calculated and what to look for in the return rate. Investing ...
Linear measurement of property abutting a road or water body acting as a boundary market. ...
making land more beautiful to look at by adding improvements such as lawns, trees, and bushes. Increases the value of the property. ...
Map presented to a municipality's planning agency by a real estate developer for consideration and approval. ...
Price at which the seller and the buyer agree to trade real estate on the open market. ...
fee to use a bridge or tunnel. Fee assessed to use someone else's property. ...
Have a question or comment?
We're here to help.