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Cost to Cure

Learn how to minimize damages by addressing cost to cure in appraisals. Explore examples like lot size requirements and store modifications. Understand key rules and considerations for effective cost to cure strategies.

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Cost to Cure

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  1. Cost to Cure A limited appraisal technique to reduce damage payments

  2. The concept of damages • Vacant residential lot • Zoning requires a minimum lot size of 9000 SF • If lot reduced below minimum, no building permit will be issued

  3. Before situation

  4. Showing taking in situation 1

  5. Showing taking in situation 2

  6. Illustration of cost to cure • Retail stores with dumpster screening enclosure • If enclosure is taken, it must be replaced or the property cannot be used as retail • Cure may consider construction of new enclosure • Cure may necessitate changes to parking lot space layout.

  7. Before situation

  8. Showing taking

  9. Cut and Re-face in cost to cure • Small take from rear of grocery store • Assumption is current use is highest and best use; and that “cure” offsets more damages than it cost of the cure.

  10. Title here

  11. Basic Rules • Cost to cure should be addressed in appraisal Scope of Work • Cure must be physically and economically prudent • Adjacent land cannot be considered in cure* • Cost to cure cannot exceed the diminution of value that would occur without the cure * State law varies

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