The Age-Life method is primarily based on what aspect?

The Age-Life method focuses on the observation of a property's condition and its chronological age to estimate depreciation. This approach recognizes that a property’s age can have a significant impact on its overall value and condition. By determining both the effective age, which reflects the expected lifespan based on current condition and the economic age, this method aims to assess how much value is lost due to age and deterioration relative to the property’s total expected lifespan.

Additionally, the Age-Life method emphasizes the relationship between age and the physical wear and tear that typically occurs over time. This involves evaluating the condition of the property to arrive at a more accurate estimation of its value, considering how usage and environmental factors contribute to its aging process. Such insights are crucial for appraisers in their analysis when determining fair market value.

The other approaches mentioned relate to different aspects of property valuation, such as using standardized formulas or relying on market predictions, but they do not capture the intrinsic link between the property's physical condition and its age like the Age-Life method does.