70% Rule Repair cost or Appeal cost?

[Jose Ortega]

When applying the 70% Rule to evaluate a property. Under "Repair" cost, do you evaluate what in fact "NEED" to be replace because is damage or you add a "REPAIR" cost because you want to upgrade? Example: a floor is in good shape(no need to be replaced) but you want to upgrade to a better tile. In this case it It'll cost more money to do so, but not necessary. My point is to give a final evaluation to the value of X property. Thank you!