Laura,
Value will peak on homes unless the owners continuosly update the home. In Plymouth, the market peaked in 2005 leaving many of the homes on the market today at bargain prices.

Thu May 8 2008, 07:36

With houses it’s location, and utility that adds value not necessarily age (Close to parks, schools, 3 yr. old roof, square footage, new windows etc…). A fifteen year old home with an original roof, windows, furnace, A/C may not be worth more or as much as a similar sized 30 year old home that has been updated.

If you built a new home and weren’t as happy in it for 30years of your life, would it be worth it if you thought you could sell it for more at that point than the other house? Remember the enjoyment you get out of your house and neighborhood is worth something.

I’ve seen a lot of buyers that like the established neighborhoods as they feel like they know what they’re getting, the neighborhood is maintained, large trees, etc… where buying early in a new construction sub you never know how many homes will not have sod or landscaping down the road or even if the sub will be completed in a timely manner.

Good luck

Wed May 7 2008, 21:44

Not necessarily. Houses, neighborhoods, and market areas go through 4 cycles - growth, equilibrium (stability), decline, and revitalization (rehabilitation). Not necessarily at the same time or the same rate. What you need to do is contact an appraiser to evaluate the home, neighborhood, and market area along with the conditions of all three and trends to determine what part of the cycle each are in and the affect each have on the value (past, present, and future assumption) along with physical deterioration (curable and incurable), functional obsolescence (curable and incurable), external obsolescence (environmental, economic and locational), effective age and depreciation.

Wed May 7 2008, 21:39

Laura, The website below contains some information available from the State of Michigan to appraisers. http://www.michigan.gov/documents/Vol1-02GeneralInstructions… please look at the section on depreciation.

In this case, we are trying to compare apples and oranges. Alot would depend on the upkeep of all homes in the area. If they are designated historical homes or have a very strict Home Owners Association laws then there would be a better chance the home will hold it's value. Based upon the information at hand, there are no guarantees.

Wed May 7 2008, 21:29