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
After-tax cash flow is a calculation method for companies’ financial performance to show their ability to generate cash flow through their operations. The after-tax cash flow formula ...
A binding arbitration is a way to solve disputes without going to court. An alternative to the more expensive and lengthy legal procedures, a binding arbitration is basically the process ...
One to whom a gift or bequest is made. ...
Legal contract in which the lender controls the pledged property being financed. The agreement describes the property and its location. Of default occurs, the lender may sell the ...
In general terms, a licensee means a person or legal entity who has received authorization or permission to perform a particular activity through another party (the licensor in our case.) ...
Refinancing seems easy to understand but is it really? Here’s a lengthy refinancing definition so you can make up your mind once and for all regarding the exquisiteness of the ...
Under law, a warranty in effect even if not expressly stated. It provides that real property sold is warranted to be appropriate for sale and is in proper condition even if not stated, ...
A closed-end mortgage is a mortgage in which the collateralized property cannot be used as security for another loan. See also open-end mortgage for a better understanding of the ...
English architecture. This style has two levels with the second level typically overlaying the first story. The roof is high and the chimney is sculptured. ...
Have a question or comment?
We're here to help.