How can an appraiser account for a property's deterioration effectively?

An appraiser can effectively account for a property's deterioration by raising the effective age of the property. Effective age refers to the age of the property based on its condition and functional utility rather than its actual chronological age. If a property has experienced significant deterioration—due to physical wear and tear, lack of maintenance, outdated features, or other factors—the appraiser recognizes that the property may not perform as well as a similar property that is newer or better maintained.

By raising the effective age, the appraiser indicates that the property's condition is equivalent to that of an older, less desirable property, which could utilize age as a basis for estimating depreciation and ultimately determining value. This approach helps provide a more accurate assessment of the property's current market value, reflecting not only its physical characteristics but also how those characteristics impact its overall desirability and worth in the real estate market.