In real estate appraisal, 'Actual Age' refers to the chronological age of a property or improvement, as opposed to its Effective Age, which can be altered by maintenance, renovation, and use.
The Age-Life Method of Depreciation is a technique that estimates all forms of depreciation sustained by an asset, based on the effective age of the property or component, divided by the total economic life of the property or component.
Chronological age refers to the actual age of a property based on the number of years since its construction, regardless of its physical condition or renovations.
Effective age refers to the age of a property based on the wear and tear it has sustained, as opposed to its actual chronological age.
