Effective Age
Definition of "Effective age"
Effective Age is the counterpart to a property’s Actual Age. While the former refers to the date a property was built, the latter is more of a sensorial depiction of its age; the age the property appears to have.
So, in a way, you can impact on your house’s Fair Market Value by making your house’s effective age younger than the actual age really is. If you maintain the house in good standards and do some renovations, the house might appear younger than it actually is.
But beware: this whole discussion of effective age versus actual age appears more frequently when trying to bring the fair market value down. So, if you’re the property’s seller, never forget to keep an eye on its conditions. Never let go of the proper maintenance and invest in renovations whenever you can.
Real Estate Tips:
Renovate your vocabulary knowledge and lower your effective age! Search for other real estate terms on our Glossary!
Proud of your actual age? There’s wisdom in knowing how to manage your time. Find an agent and let him take care of the real estate terms!
Popular Real Estate Terms
Written agreement in which the lessee pays rent to the lessor for the use of real property for a stated time period. An example is the tenant's rental of an apartment or office space. ...
Invests in rental property but does not manage that property. ...
Ownership in property by two or more persons at the same time. ...
Same as term resale proceeds: Net amount received when property is sold. It equals the selling price less outstanding mortgage balance less all costs incurred in connection with the sale. ...
Type of flooring, made up of tiles of colored stone or marble that is set in concrete. ...
An organized group of ethical behavior guidelines governing the day-to-day activities of a profession or organization. ...
Map that shows the location and boundaries of individual properties. ...
The bonus depreciation definition refers to a tax incentive that allows a business to accelerate the depreciation deduction in the year when the asset is purchased and placed into use. The ...
A prefabricate house constructed in a factory with final assembly and erection on site. Because of economies of scale and modern factory production techniques, modular housing is ...
Have a question or comment?
We're here to help.