How is effective age determined?

Effective age refers to how old a property appears based on its condition and utility rather than its actual chronological age. It takes into account factors such as renovations, upgrades, maintenance, and overall structural condition, which can significantly impact a property's livability and functionality. For instance, a well-maintained home with modern updates may be considered to have a much younger effective age compared to a property of the same chronological age that has been neglected or poorly maintained.

This focus on the current state of the property aligns with how buyers and appraisers assess real estate. It emphasizes that the value and appeal of a property are not solely determined by the number of years it has existed, but rather by how well it meets current needs and standards.