Effective age reflects what aspect of a building?

Effective age refers to the age of a building as estimated based on its condition and utility rather than its chronological age. It is a crucial concept in real estate valuation because it provides insight into how well the building has been maintained and updated over time. A building may be relatively new in terms of its actual construction date but may have an effective age that is older if it has not been well maintained or has experienced significant wear and tear.

In this context, the effective age takes into account renovations, updates, and the overall physical state of the property, which can significantly impact its appeal and functionality. Hence, it serves to highlight the importance of the building's physical condition in relation to its perceived value and usability in the market.