DDDD, Home Seller in WOrk

Does a house built in 1960 command fewer dollars vs a house built in 1990 - 2000? WHY???,

Asked by DDDD, WOrk Sun Oct 7, 2007

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Even in a remodeled older home, I think the challenge/devaluing of older homes is largely due to what we call "functional obsolescence" which basically means that in older homes, the layout, the design or the elements within become functionally obsolete over time because buyers always want more for their money and builders are always trying to come up with that floorplan that better utilizes every space. Things you will not see in a 1960 home will typically be cathedral ceilings and split floorplans, yet you are likely to see long hallways and compartmentalized living and dining rooms. As a buyer, you should select the home that has features that appeal to your own specific needs, when it's time to sell, there will always be someone else to come along who also appreciates the things you like about the home. It may just take a bit longer to sell since so many homeowners are attracted to big open spaces and parents having their privacy etc. As for the value, it all depends on the surrounding market....replacement value will of course be based on todays cost for a similar structure.
1 vote Thank Flag Link Sun Oct 7, 2007
1) My have older utilities such as older wiring not up to current codes
2) Location - may be in an older neighbourhood with less amenities and less desirable environment
3) May have a design that does not fit into current lifestyles such as only one bathroom in a four bedroom home, or non-insulated windows.
Web Reference: http://www.iansellsnola.com
1 vote Thank Flag Link Sun Oct 7, 2007
House values are always related to demand. If buyers are seeking out new construction, then the prices will most likely rise. If buyers are seeking out a house in a neighborhood that is more "established", older homes may see a rise in price. Currently in our market, the demand for mature neighborhood are in higher demand than properties in a newer development.
Web Reference: http://ninachen.net/
0 votes Thank Flag Link Wed Oct 10, 2007
Speaking from the view of a home inspector, some of the answers are not technically correct.

First, few homes are actually constructed to the current code - they are constructed to meet the variation of the code adopeted by the local jurisdiction at the time of construction. Some jurisdictions are 5-7 years behind in updatig their codes. Others have poor (or overworked) code inspectors who miss items. Even a home built 3 years ago wouldn't necessarily pass todays code. I am not a realtor, but I have been told that things like updated wiring and plumbing do not equate to increased sale value (whereas updated kitchens and baths may increase the sale value).

Next, while some materials and methods used in current construction are advertised as "better" or "stronger" they have not been in use long enough to identify their weaknesses and failngs. PB (grey plastic) pipe was thought to be a great advancement in the 70s and early 80s, until it became the subject of a lot of failures and a huge class action suit. Asbestos was thought to be great stuff when it came out, too...... Myself, when I construct something, I prefer a solid piece of wood to the finger jointed lumber that many builders use, for example.

Still, there are a good number of features and materials that are improvements (like improved roof venting standards, manufactured trusses, and fire safety codes for example) but those rarely sell a home. So, structurally and mechanically, there is little to support a price difference between homes of different ages in the same location. This would seem to indicate that it is more reliant on cosmetic concerns, features, and design.

We tend to like "new" things as opposed to "used" things. Bigger, better, shinier. We may never use that 3rd bath, but it's great to have!! I also think there is something to the idea of functional obsolescence, especially wqith regard to layout, that was mentioned previously.

Hope this helps!
0 votes Thank Flag Link Mon Oct 8, 2007
Diane,

I can be amused if I so choose and I do not need to be reprimanded by Diane Glander for what she thinks is a right or wrong way to respond to an answer.

People are looking for real answers to questions.. not talking head blather as noted.
Web Reference: http://www.johnsacktig.com
0 votes Thank Flag Link Sun Oct 7, 2007
Because MOST homes built in 1960, even those that have updated kitchens and baths, can't compare to new construction. And judging from the homes I see for sale MOST 1960 homes haven't been updated.
0 votes Thank Flag Link Sun Oct 7, 2007
John,
If you have some constructive criticism about someone's answer, it would be a better idea to respond directly to it and the original post than to make a blanket statement like "Being a Realtor and fighting the image is a hard thing sometimes.... answers like some I have seen are the reason"
The Trulia community is not so much about disagreeing with someone's opinion, but being able to do so with tact.

To answer the question posted, as a house ages, it depreciates like most everything else. You do not mention whether or not improvements were continually made so a house built in 1960 should not be appraised comparably to one built in 2000.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Sun Oct 7, 2007
Depends on the Location? What the heck?

If the home has be maintained well and updated.. It should be able to compete with others around it.

There are homes that are 50 years old that have been updated mechanically ... wiring and utilities and such that were probabaly built 1000x better then a lot of todays particle board homes that cost 800 -900,000

Oh, yes.. and of course the location : )

Being a Realtor and fighting the image is a hard thing sometimes.... answers like some I have seen are the reason.
Web Reference: http://www.johnsacktig.com
0 votes Thank Flag Link Sun Oct 7, 2007
It depends on where the home is located. There are many homes built in 1960 that command more dollars than one built in 2000 because of their location. Check with a Realtor in your area.
0 votes Thank Flag Link Sun Oct 7, 2007
It all depends. There could be a home built in 1960 which has been completely remodeled and upgraded with every amenity a homebuyer wants in 2007. This would likely command a higher price than a home built in 1990 that has not been updated at all.

It could also vary from neighborhood to neighborhood and city to city. For example here in the Orlando, Florida area, a 1960 home in an affluent Orlando suburb, Winter Park, would command a higher price than a comparable 2007 home in a less desireable area.

I'd highly recommend getting the advice of a competent Realtor or hiring a professional appraiser for a value if necessary.
0 votes Thank Flag Link Sun Oct 7, 2007
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