Definition: Effective age is an appraisal estimate of an improvement's age based on its condition and utility rather than simply its construction date.
Example
A well-renovated 30-year-old building may have an effective age of 15 years in the appraisal.
Keep the distinction clear
Actual age counts elapsed years. Effective age reflects condition and usefulness; it is not necessarily less than actual age.
Related terms
Economic Life · Depreciation · Curable Depreciation
Keep studying
Comparable Sales: Adjustments and Weighted Values
References: California DRE: appraisal and valuation concepts
Pronunciation (US): ih-FEK-tiv AYJ (capitals show stress)
Pronunciation reference: Merriam-Webster
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