In depreciation, what does "Observed Conditions Breakdown" assume?

The concept of "Observed Conditions Breakdown" in the context of depreciation refers to the idea that each structure has a unique situation. This approach recognizes that no two properties are exactly alike and that individual circumstances affecting depreciation can vary significantly from one property to another.

By focusing on the distinct attributes and conditions of each structure, appraisers can more accurately assess the specific factors contributing to depreciation. This method takes into account aspects such as the property’s age, maintenance history, location, and current market conditions, leading to a more tailored and precise evaluation of its value over time.

The other options do not align with the essence of Observed Conditions Breakdown, which is rooted in the individuality of each property rather than applying a uniform depreciation method like straight-line depreciation or making broad assumptions based on market trends.