What term refers to the discrepancy between the actual age of property and how old it appears?

The term that refers to the discrepancy between the actual age of a property and how old it appears is known as Effective Age. Effective Age takes into consideration not just the chronological age of a property, but also its condition, maintenance, upgrades, and any renovations that may have been completed, which contribute to its perceived age. For instance, a property that has been meticulously maintained may appear to be newer than its actual age, while another property may appear much older due to lack of maintenance or significant wear and tear, despite being the same age.

This concept is pivotal in the appraisal process because it directly affects the valuation of the property. Appraisers utilize Effective Age to better assess the property’s desirability and market value since buyers will consider how the property looks and functions in its current state rather than just its actual age. The other terms listed do not encapsulate this specific notion; for instance, Physical Deterioration relates to the tangible wear and tear on the property without the broader context of perception, while Market Age and Construction Age do not consider the influence of updates and maintenance on how a property ages in the eyes of potential buyers.