Physical deterioration of a property is measured by which method?

The method that measures physical deterioration of a property is the Cost-to-Cure method. This approach focuses specifically on quantifying the costs associated with repairing or replacing physical components that have deteriorated due to physical wear and tear, neglect, or age. By calculating the expenses required to restore a property's condition, assessors can obtain insight into the value lost due to physical deterioration.

This method serves a critical function in property valuation and assessment as it allows for a more accurate representation of a property's current state and potential future value. When determining the overall depreciation of a property, the Cost-to-Cure helps in understanding how much of that depreciation is attributed specifically to physical deterioration, which is an essential aspect for property assessment professionals.

Other methods listed, like Replacement Cost, would focus on the cost to reproduce or replace the building entirely, rather than just assessing the needed repairs for deteriorated elements. Depreciation Analysis encompasses broader categories of depreciation, including emotional and functional obsolescence, while Market Value Assessment deals with the current market price for properties, which is influenced by numerous factors beyond just physical condition. Thus, the Cost-to-Cure method is the most applicable for measuring physical deterioration specifically.