Business Glossary

depreciation or deterioration that can be corrected at a cost less than the value that will be added.

a defect that cannot be cured or that is not financially practical to cure; a defect in the "bone structure" of a building. Compare curable depreciation.

Example: It is estimated that if a specific house had a more convenient floor plan, it would sell for an additional $5,000. The poor floor plan is incurable depreciation because the cost to correct is greater than the market value increase that correction would bring.