What is used to determine the Effective Age of a property?

The determination of a property's Effective Age is primarily based on actual age minus depreciation. Effective Age reflects how well a property has been maintained and its overall condition as perceived by the market, rather than just the number of years since it was built.

When assessing Effective Age, appraisers consider factors such as renovations, updates, and general upkeep. By subtracting any depreciation from the actual age, appraisers arrive at a more accurate representation of the property's useful life and market potential. This approach helps in understanding how the physical condition and maintenance have impacted the property's value over time.

The other choices, while related to property assessment and valuation, do not directly correlate with the calculation of Effective Age. Historical cost assessment focuses on the initial cost of the property and any subsequent adjustments, rather than its perceived age. Market value stability pertains to the property's position in the market and how prices change over time, which does not necessarily influence its Effective Age calculation. Lastly, the average lifespan of similar properties provides context for longevity but does not factor directly into the Effective Age of a specific property.