Why might effective age differ from actual age?

Effective age differs from actual age primarily because it reflects the quality of construction and the maintenance of improvements over time. While actual age is simply the length of time since the property was built, effective age takes into consideration how well the property has been maintained and how the construction quality may impact its condition.

If a property has been well-constructed and regularly maintained, it may appear to be newer than its actual age, resulting in a lower effective age. Conversely, if a property has been poorly maintained or suffers from structural issues over time, its effective age might be perceived as older than its actual age. This distinction is crucial for appraisers, as it allows for a more accurate evaluation of a property's value based on its current condition rather than just its age.

The other options, while they may have some relevance to real estate, do not specifically address why effective age can differ from actual age. For example, fluctuations in the real estate market and neighborhood changes may influence property values but do not directly impact the concept of effective age. Additionally, considering only the structural integrity overlooks factors like renovations, upkeep, and market perceptions that play a significant role in determining effective age.