Effective Age vs Economic Life

Effective age is the age of a property based upon its condition, not its actual age.

If an appraiser examines a building that is 25 years old, but because of superior upkeep has the condition of an 11-year-old building, the appraiser may use the 11-year-old age as the effective age of the property.

Economic life is the length of time during which a piece of property may be put to profitable use, usually less than its physical life.