2.9 Effective Age Review the subject improvements' actual or chronological age, and explain how the actual...

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2.9 Effective Age Review the subject improvements' actual or chronological age, and explain how the actual or chronological age differs from effective age. Define both terms. Estimate and justify an opinion of effective age. Students are sometimes confused with the concept of effective age, particularly when considering the effective age of buildings as a whole, and the age and effective age of its component parts. Long-life items likely have effective ages equal to their chronologi- cal ages. The same will apply to short-life items, unless something has happened where parts of items have been replaced or worn out faster than is typical. The greater the difference between effective age and chronological age, the stronger and more convincing must be the justification. Hints for Success: Effective Age Ensure that improved comparables in the direct comparison approach have effective ages comparable to that of the subject. Ensure that the justification for an increase or reduction in effective age compared to the subject's actual age is consistent with the preceding description of the subject building, including quality of construction, recent maintenance or replacements, and condition. Effective age is required for the subsequent depreciation analysis, and for comparison to improved comparables in the direct comparison approach as one test of comparability of the sales selected. In other words, what age of property would the subject property compete against in the marketplace? Effective Age and, in the next subsection, Remaining Economic Life, present the first major opportunity for the student to justify and express an opinion related to the subject, based upon an analysis of relevant data and factors. 2.9 Effective Age Review the subject improvements' actual or chronological age, and explain how the actual or chronological age differs from effective age. Define both terms. Estimate and justify an opinion of effective age. Students are sometimes confused with the concept of effective age, particularly when considering the effective age of buildings as a whole, and the age and effective age of its component parts. Long-life items likely have effective ages equal to their chronologi- cal ages. The same will apply to short-life items, unless something has happened where parts of items have been replaced or worn out faster than is typical. The greater the difference between effective age and chronological age, the stronger and more convincing must be the justification. Hints for Success: Effective Age Ensure that improved comparables in the direct comparison approach have effective ages comparable to that of the subject. Ensure that the justification for an increase or reduction in effective age compared to the subject's actual age is consistent with the preceding description of the subject building, including quality of construction, recent maintenance or replacements, and condition. Effective age is required for the subsequent depreciation analysis, and for comparison to improved comparables in the direct comparison approach as one test of comparability of the sales selected. In other words, what age of property would the subject property compete against in the marketplace? Effective Age and, in the next subsection, Remaining Economic Life, present the first major opportunity for the student to justify and express an opinion related to the subject, based upon an analysis of relevant data and factors.