With which of the four methods used to measure depreciation does the appraiser estimate the property's loss in value for both curable and incurable items of depreciation?

The method that allows an appraiser to estimate the property's loss in value for both curable and incurable items of depreciation is known as the observed condition method. This approach involves a thorough inspection of the property, allowing the appraiser to identify various physical issues and components that influence its value. By evaluating the property’s current state and the condition of its different elements, the appraiser can determine the extent of depreciation.

Specifically, the observed condition method breaks down depreciation into observable elements, which can include factors like wear and tear, functional obsolescence, and external factors. This comprehensive assessment enables the appraiser to effectively quantify the depreciation attributable to both items that can be repaired or addressed (curable) and those that cannot be feasibly rectified (incurable).

In contrast, the other methods mentioned focus on different aspects of depreciation. The age-life method primarily assesses depreciation based on the age of the property relative to its expected lifespan, capitalized value typically deals with income-generating properties and their value based on income potential, and market extraction focuses on deriving depreciation from actual sales data and market trends. Therefore, these methods do not provide a holistic view of both curable and incurable depreciation as effectively as the observed condition method does.