Today's Real Estate Term is Effective Age.
Effective Age is the age determined by the condition of the property based on the wear and tear sustained. Effective Age is not always the same as chronological age. Buildings do not always depreciate at the same rate depending on the maintenance of the owners and/or occupants.
For example, a home that is 40 years old but has a new roof, new windows and had it's kitchen and bathroom updated could have an effective age of 10 to 15 years or less. Conversely a home that has been poorly maintained or neglected could have an effective age that is more than it's actual age.
The process of estimating Effective Age is used by Real Estate appraisers when they appraise a home.
Real Estate Terminology provided by David Miller Realty.
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