Under which scenario can an appraiser define the effective age of a property as lower than its actual age?

An appraiser can define the effective age of a property as lower than its actual age primarily when significant renovations or improvements have been made. This is because recent renovations can enhance the property’s condition and functionality, creating an impression that the property is newer than its chronological age would suggest.

Effective age is a subjective measure that reflects the condition and utility of a property, rather than just the date it was built. Renovations may include updates to major systems (like plumbing and electrical), structural improvements, or aesthetic upgrades (like flooring or appliances). All these factors contribute to the perception of value and livability, persuading the appraiser to assign a lower effective age based on the improvements made.

Other scenarios, such as being located in a historically preserved area or having high occupancy rates, do not inherently relate to the property’s condition. While desirable neighborhoods may influence overall value positively, they don't directly affect the actual versus effective age distinction unless there are significant upgrades or maintenance activities present.