Which method estimates depreciation based on a straight-line approach?

The method that estimates depreciation based on a straight-line approach is the Overall (Age/Life) method. This approach involves calculating the depreciation of a property by considering its effective age in comparison to its remaining economic life. Essentially, it measures how much value a property has lost over time due to factors like wear and tear, obsolescence, or changes in market conditions.

In this method, the total value of the property is divided evenly across its expected lifespan, which allows for a clear and systematic way to determine annual depreciation. This direct relationship between age and value loss makes the Overall (Age/Life) method particularly straightforward, as it simplifies the assessment of depreciation into predictable increments.

Using this method is beneficial for appraisers because it provides a consistent framework for evaluating a property's value over time. It minimizes confusion and enhances comparability between different properties or assessments.

The other methods mentioned, while valid in their contexts, do not employ a straight-line approach for calculating depreciation. For instance, depreciation tables would use predefined data to estimate losses rather than calculating depreciation based on age and remaining life. Similarly, the Engineering Breakdown method typically focuses on specific components of a property and their respective lifespans, and Observed Condition assesses depreciation based on the current physical state rather