Hawaii Pre-Licensing National Practice Exam 2026 – Your Complete Prep Guide

Curable physical depreciation refers to the type of physical deterioration of a property that can be repaired or fixed, ultimately leading to an improvement in the property's value. This concept is important in real estate appraisal because it allows appraisers to identify aspects of a property that, if addressed, would enhance its marketability and value. For instance, if a building has worn carpets, damaged roofing, or peeling paint, these issues are often considered curable because they can be remedied. Upon completion of these repairs, the property's overall condition and thus its value are likely to rise.

In contrast, the other options describe forms of depreciation that do not involve the potential for effective and economical repair. Long-term damage that cannot be economically repaired represents curable physical depreciation more accurately, but it indicates a situation where the cost of the repairs exceeds the potential increase in value, thus classifying it as incurable. Physical issues that devalue a property due to market conditions relate to external economic factors or market dynamics rather than specific conditions of the property itself, and a reduction in property value due to location reflects external locational influences rather than physical characteristics of the property.