When might an appraiser find depreciation particularly relevant in their property assessments?

Depreciation is particularly relevant for appraisers when they assess the value of outdated properties because it directly affects how the age and condition of a property influence its market value. An outdated property often suffers from functional obsolescence—meaning that certain features may no longer meet current buyer expectations, or it could be less efficient compared to modern alternatives. The appraiser must account for these factors, as they can significantly reduce the property's overall value compared to newer or updated properties.

In this context, assessing depreciation helps the appraiser determine how much value has been lost over time due to age, condition, and other external factors that may diminish the property’s appeal in the current market. Identifying and quantifying depreciation assists in providing a more accurate market value estimate, taking into consideration not just the physical state of the property but also how it compares with current market standards.

While other situations mentioned may influence appraisal methods, they do not underscore the critical role of depreciation in the assessment of outdated properties as effectively as this option.