Effective age

A building’s age based on its condition and use

The effective age of a building is not its actual age. Effective age takes into account major renovations made on the building and how it has been maintained. Appraisers, professionals who estimate the value of a property, will use the effective age to calculate accrued depreciation, a value that is used for tax purposes and equal to the difference between the cost to replace the building and its current value.