What does the cost-to-cure method of depreciation involve?

The cost-to-cure method of depreciation focuses on identifying specific deficiencies in a property and calculating the costs required to remedy or "cure" those issues. This approach is particularly useful in evaluating properties that have physical deterioration or functional obsolescence, as it enables appraisers to determine how much it would cost to bring the property back to a desirable condition.

By assessing each deficiency and estimating the financial outlay needed to address these problems, an appraiser can provide a clearer picture of the property's true market value as it stands. This method differs from assessing overall value or general depreciation, as it highlights specific issues and quantifies the investment needed to rectify them, ultimately allowing for a more accurate valuation of the property.

The other options do not align with the core concept of the cost-to-cure method. While estimating future market value is crucial for overall assessments, it does not specifically address the costs associated with fixing existing problems. Calculating annual wear and tear focuses on depreciation over time rather than immediate restoration costs. Determining land value depreciation deals with the land itself and does not consider the improvements or the costs to correct deficiencies.