Actual Age
Definition of "Actual age"
There’s no mystery. The actual age of a property is the chronological age of a property. Say a house was built two decades ago. That house’s actual age is 20 years old.
The counterpart to it is the Effective Age, which refers to the state the property is currently in.
So, do you know how sometimes you see a person that looks really young – effective age - and you’re amazed that he/she is actually much older – actual age - than what you’d thought? That can happen in the real estate world as well if the homeowner has done a good job with maintenance and renovations.
Usually, this relation of one versus the other comes up in bad scenarios, where the Fair Market Value of the property is brought down because the effective age of the house is much older than the actual age. But in rare cases it can bring the fair market value up because the former is so much older than the latter that it creates a perception of value due to the fact that it stood the test of time and became almost a relic in comparison to other properties in the market.
Real Estate tips:
Learn the actual meaning of hundreds of real estate terms in our Glossary.
Search through The OFFICIAL Real Estate Agent Directory® for that perfect agent!
Popular Real Estate Terms
Loans that adhere to national guidelines by Fannie Mae, who buy the loans on the secondary market. Fannie Mae purchases mortgages to a certain dollar limit. Conforming loans typically ...
To secure a listing by a real estate agent for a certain parcel of property. For example, a real estate broker wishes to list as many properties a possible to built an inventory of future ...
Arrears is a legal and financial term used to describe payments in regards to their due dates. While the term is more often used to refer to a contractual obligation or liability that was ...
Periodic expenditures undertaken to preserve or retain a property's operational status for its originally intended use. These expenditures do not improve or extend the life of the property. ...
The term “property title” is relatively common and often used in the real estate industry, which is why it’s useful to know what it really means. While the term itself is ...
A lease having two or more joint lessees who share a common liability with a lessor. Under a joint and several liable lease the lessor may demand the full terms of the lease from one or all ...
Term used in the real estate industry describing the price requested by a property owner vs. the price a buyer is willing to pay. Bid is the highest price a purchaser is willing to pay ...
Real estate property incentive offered for reasons other than individual merit. A discriminatory inducement is an effort to get an individual to buy or sell, rent, or lease real estate ...
When you sign a Listing Agreement with a real estate broker or agent, he or she has a fiduciary responsibility to represent your interests exclusively. However, should another client ...
Have a question or comment?
We're here to help.