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
Money raised by a syndicate promoter and placed into a fund prior to selecting the specific property in which funds will be invested. ...
The definition of acoustical materials is a wide range of materials that are used in construction or technology to provide soundproofing. There are different types of acoustic materials ...
Site where mobile homes are located. Mobile home parks are often mandated by municipal zoning laws. They provide necessary utilities to the mobile homes often including recreational ...
Situation in which a purchaser acquires mortgaged property and continues to pay the mortgagee for the debt outstanding. Although the new buyer continues to pay the mortgagee for the debt ...
Allocating the price paid to purchase to or more properties based on their appraised values. ...
Generally, the definition of a deposition means a pre-trial and out-of-court testimony that is given under oath. A deposition is integral to the discovery process to establish a ...
Law enacted by a local authority applicable to the action of people or things. An example is a fine of $5,000 for littering vacant real estate. ...
(1) A persons permanent and legal place of residence. While an individual may have one or more residences, it is only possible to have one permanent address. (2) The state where one has ...
Any written evidence or tangible material which can be reproduced as written material which is coherent and related to the subject at hand. This includes documents, contracts, inscriptions ...
Have a question or comment?
We're here to help.