Which method does an appraiser use to estimate a property's loss in value for both curable and incurable depreciation?

The method an appraiser uses to estimate a property's loss in value for both curable and incurable depreciation is best represented by the Observed Condition method. This approach allows the appraiser to visually assess and measure the actual condition of a property, identifying specific elements that may have depreciated in value. From there, they can determine the amount of depreciation attributable to various issues, whether they are able to be repaired (curable) or not (incurable).

Curable depreciation refers to a decrease in value that can be corrected by making repairs or renovations at a reasonable cost. In contrast, incurable depreciation arises from aspects that cannot be feasibly repaired or would not be economically sensible to address, such as structural issues or changes in the neighborhood that permanently affect value.

Utilizing the Observed Condition approach allows an appraiser to factor in these conditions effectively, providing a clear assessment of how various aspects of the property contribute to its overall depreciation. This direct visual assessment is critical in forming an accurate evaluation of both curable and incurable depreciation impacts on the property's market value.