What determines how Modernization is assessed?

Modernization is assessed by considering both the cost to cure and the depreciated cost of the existing item. This approach allows for a comprehensive evaluation of the value added by modernization efforts while also accounting for any depreciation that has affected the existing components.

When assessing a modernization project, it's essential to evaluate how much it will cost to bring an asset up to current standards (the cost to cure) and to factor in the remaining value of the existing items that are being improved or replaced. By incorporating both aspects, appraisers can determine an accurate measure of the improvement's worth and its contribution to the overall value of the property. This combination provides a holistic view of the property's condition and marketability after modernization is completed.

In contrast, choices that focus solely on either the cost to cure or other specific aspects, such as installation costs or current market value alone, do not provide the same depth of analysis necessary for a thorough appraisal. This comprehensive method ensures that all relevant factors affecting modernized property value are considered.