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
Any of several types of legal joinders whereby one or more parties unites with or joins other parties in a legal action or proceeding even though the party may not be a direct part of the ...
Specific portion of a larger land tract. A parcel can also be a lot in a property subdivision. ...
Founded in1934 and located in Chicago, IL with a 1993 membership of 8,300, the IAAO seeks to ameliorate assessment standards as well as to perform ongoing property assessment research. The ...
A bond, also known as a completion bond, given by a contractor and issued by an insurance company to guarantee the completion of contracted work. Public authorities often require a ...
Same as term closing: legal process of transferring a piece of real estate to a buyer. Typically it occurs in the office of the lender, attorney, or an escrow company. ...
Housing where affirmative action is actively pursued encouraging people of all races, nationalities, and religions to purchase or rent the facilities. ...
An equity-to-value ratio is an excellent tool for those homebuyers that want to understand how profitable an investment is based on the amount of money invested and the actual value of the ...
A four-unit building with four tenants in a condominium type of ownership and management. ...
A relationship with a person, thing, or item that is the foundation of an insurance policy. One having an insurable interest has a financial stake in preserving the insured person or ...
Have a question or comment?
We're here to help.