Real Estate Glossary

What is Effective Age?

Effective age is a measure of the functional age of a property, as opposed to its actual age. Effective age takes into account the condition and quality of the property's systems and features, as well as any renovations or updates that have been made. Effective age may be used to determine the value of a property or to compare it to similar properties, and it may be an important factor in a buyer's decision-making process. Effective age may be determined through an inspection or appraisal, and it may be different from the actual age of the property.