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Cost To Cure
The cost-to-cure refers to the amount of money required to fix something about a property that has a negative impact on it’s market value.
These mostly refer to problems about a property where the cost to repair it would result in an increase in value exceeding the money spent.
For example, a leaking roof might depress a house’s value by $20,000, but the cost of replacing it might be $11,000. Thus, spending the money to fix it would “cure” the property of it’s depressed value.
This implies that a cost to cure would not apply to all types of problems that a property could be experiencing as some expenses would not justify a good enough increase in value
As such, the cost to cure is a concept mostly analyzed by investors, flippers and new home sellers.
It is recommended at this point to explore the types of renovations that increase home value.