In real estate appraisal, observed condition refers to the process of estimating depreciation by directly examining the physical state of a property. The appraiser evaluates visible wear, deterioration, and functional issues based on firsthand observation.
This method relies on the appraiser’s professional judgment to assess how the property’s condition affects its value. Observed condition is commonly used in conjunction with other appraisal techniques to account for physical depreciation and maintenance needs.
