Breakdown Method

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January 1, 1 6 min read Definitions

Breakdown Method Appraisal Accrued Depreciation Physical Depreciation Functional Obsolescence Economic Obsolescence Reproduction Cost New Cost Approach

In real estate appraisal, the Breakdown Method is a comprehensive approach used to divide accrued depreciation into distinct categories: physical depreciation, functional obsolescence, and economic obsolescence. This method contrasts with the age-life method of depreciation.