A property with a high effective age indicates what about its condition?

A property with a high effective age suggests that it may have experienced significant depreciation, reflecting its overall condition in comparison to its chronological age. Effective age takes into account various factors such as maintenance, renovations, and overall wear and tear that a property has undergone over time.

When a property has a high effective age, it typically indicates that despite its actual age, it shows signs of aging that might not be merely the result of time passed. This could mean that the property has not been adequately maintained or that it has suffered from neglect, resulting in deterioration.

Understanding effective age is crucial for assessing property value, as a higher effective age often translates to lower market value due to the condition issues that can accompany aging infrastructure, appliances, and systems. Therefore, seeing a high effective age aligns with the implication that the property may be experiencing significant depreciation rather than being in excellent condition, newly constructed, or merely in average condition for its age.