What is meant by 'Effective Age' of a property improvement?

The concept of 'Effective Age' refers to the assessed age of a property improvement based on its condition and utility, rather than merely the chronological age since it was built. It reflects how well the property has been maintained and how suitable it is for current market standards, taking into account factors like renovations, updates, and physical wear and tear.

For instance, a property that has been updated significantly with modern features may have an effective age that is much younger than its actual age. This assessment is crucial for appraisers, as it directly impacts property valuation by influencing the depreciation calculations and determining the property's worth in the current market.

In contrast, the other options refer to different concepts: original age pertains to how long the property has existed, expected lifespan focuses on market perceptions rather than actual conditions, and age at purchase does not reflect any renovations or changes made since that time. Thus, effective age provides a practical assessment of a property's value based on its current state rather than just its history.