William, Home Buyer in Daly City, CA

Does the building age effect the price much in San Francisco?

Asked by William, Daly City, CA Wed Apr 4, 2012

Reason I ask is because San Francisco has a lot of older buildings. And most of the buildings are label "Potential Historic Resource". Is that a value added or deducted on the property?

Help the community by answering this question:


In general, the physical structure actually depreciates over time. It is the land underneath the structure that appreciates in value. Land is in limited supply, and no one is producing it any more, so the price goes up. As the building ages, it requires capital for maintenance and updates. The degree of depreciation is specific to each property, but if left alone, a property will continue to lose value until it no longer adds value to the land.

In many historic districts, the actual age of properties often exceeds 100 years. Without significant renovation and rehabilitation, these buildings risk losing all economic value.

HISTORIC DESIGNATION makes the demand for historic properties to grow. History cannot be replicated in new buildings and therefore TRUE historic homes in SF are selling for a higher price. Buyers are willing to pay a premium for the oldest, "antique" homes in SF area where age and history are combined.

(415)-722-6249 / proqvest@gmail.com
0 votes Thank Flag Link Thu Apr 5, 2012
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