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
When we’re talking about debt service, we refer to the amount of cash required to cover the debt’s repayment of both the interest and the principal for a certain period of time. ...
Agreement to transfer funds to a third party. ...
(1) Cash revenue from product sales or services rendered less cash expenses. It is different from accrual earnings. (2) The money available after deducting operating expenses and mortgage ...
A wall or roof which extends beyond a lower wall. ...
Document issued by a governmental agency permitting the recipient to do something. An example is a building permit to construct a structure. ...
Real estate business owned by one person having all the rights and obligations. ...
Buyer agrees to accept the responsibility for the existing mortgage. The seller is not relieved of the obligation unless the lender agrees to release it. Many lenders charge points and ...
Mortgage placed on a property after a previous mortgage. It can be a second, third, etc. mortgage. A junior mortgage is subordinate to the terms of a previous mortgage. Junior mortgages ...
Capacity in real life has numerous meanings. So, what is the definition of capacity? The “capacity definition’ applies to the highest amount a distinct object or entity can ...
Have a question or comment?
We're here to help.