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
property having an easement right through another adjoining property. The property through which the easement passes is considered to have the servient tenement. ...
In real estate, the term "preamble" refers to an introductory statement that outlines the fundamental principles and goals guiding the industry's practices. Specifically, in the National ...
Dehydrated gypsum that is mixed with water to form a rapidly setting material. Plaster of paris sets too rapidly to be practical for most building applications, but it is useful for ...
When dealing with foreclosure, anti-deficiency laws can act as a life raft for many homeowners. They are state laws that come as a form of relief protecting the purchaser of residential ...
Loss of property from nonfulfillment of some duty or condition. In some cases, forfeiture is required by a court order, whereas in other cases the nonfulfillment of a contractual debt is ...
Metal hardware within the construction that is typically not visible, such as bolts, nails, and screws. ...
Person who dies leaving a will specifying the distribution of the estate. ...
Two-story house where the front door is located above the first floor but below the second floor. ...
Combination of IRC 1034 and 121 dealing with the sale of a personal residence with the once-in-a-lifetime $125,000 exclusion that may be available for the "over-55" seller. Should the ...
Have a question or comment?
We're here to help.