How is Deficiency measured in property appraisal?

In property appraisal, deficiency is measured by comparing the cost to cure the deficiency against the Replacement Cost New (RCN) of the item in question. This method evaluates what it would cost to address the deficiency and improve the property to its optimal condition. By doing so, appraisers can understand the financial implications of bringing the property back up to market standards.

This comparative approach allows appraisers to quantify how much value might be lost due to the deficiency and how much investment is required to rectify the issue. Therefore, option B reflects the standard practice of assessing deficiency by evaluating both the cost to cure and the RCN, giving a clear picture of the property's condition relative to the market.

Other options may provide relevant aspects of property appraisal but do not directly address how deficiency is specifically measured. For instance, while depreciation accounts for value loss over time, it does not directly measure the deficiency in terms of cost to cure. Similarly, examining the market value of the surrounding area or simply considering the RCN does not focus on the deficiency and its rectification in the same manner.