What is it called if the cost to cure a problem exceeds the potential gain in property value?

The term used when the cost to cure a problem exceeds the potential gain in property value is known as "incurable." In real estate appraisal, this concept is important when evaluating properties with issues that may reduce their value. An incurable defect indicates that the expense required to correct the issue is disproportionately high compared to the value that would be added to the property after the cure is implemented.

For instance, suppose a property has significant structural damage that would cost a substantial amount to repair, but the anticipated increase in market value from those repairs is minimal. In this case, addressing the structural damage would be deemed incurable. Appraisers must recognize such scenarios because they can influence investment decisions and property valuations significantly.

In this context, the other terms do not accurately encapsulate the situation where curing a defect is cost-prohibitive. "Too costly" may informally describe the situation but lacks the specificity and formal recognition within appraisal terminology. Labeling a property "unsaleable" implies it cannot be sold, which is not the same as stating that the issue is incurable. "Valueless" suggests that the property has no value at all, which is misleading, as it still may hold some value despite the issues present.