Cost-To-Remedy Report

WHAT IS A COST-TO-REMEDY (AKA COST-TO-CURE) REPORT:

An opinion of the costs to address physical deficiencies observed during an inspection. It is based on suggested remedies such as repairs or replacements and the scope agreed upon between the inspector and client, including objectives and dollar-amount thresholds. It helps clarify the condition of the property and provides an initial indication of the funds that may be required to perform the remedies immediately, over time, or both.

REASONS TO OBTAIN A COST-TO-REMEDY REPORT:

• Informed Acquisition & Negotiation: Buyers use the report to determine how much, if any, of the repair costs should be negotiated into a lower purchase price or covered by the seller.

• Budgeting & Capital Planning: It enables property owners and investors to set aside appropriate funds for immediate repairs, deferred maintenance, and future capital expenditures, reducing the risk of unexpected, expensive emergencies.

• Lender Underwriting & Risk Management: Lenders often require these reports to confirm that a property's value can support a loan and to understand the short-term liabilities associated with the asset.

• Clarity on Asset Condition: The report acts as a clear, detailed guide, separating minor maintenance from major repairs and helping stakeholders understand the financial implications of the property's physical state.

• Decision-Making Tool: It provides a list of anticipated costs, allowing owners to determine which repairs are critical to address immediately and which can be delayed, helping with long-term cost management.

• Validation of Repair Methods: It provides an objective, third-party estimation based on typical repair methods and current market cost data, rather than relying solely on seller assertions.

WHO A COST-TO-REMEDY IS FOR:

• Owners

• Buyers

• Sellers

• Tenants

• Brokers

• Realtors

• Agents

• Banks

• Property Managers

• Local, State, and Federal Governments