how does the age of the home relate to the selling price?

Asked by Janina Lopez, Salt Lake City, UT Wed Feb 6, 2008

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Cheryl Lyon, Agent, Draper, UT
Wed Feb 6, 2008
Janina,

The age of a home is one of many factors to consider in a home's price. Hand in hand is the condition the home is in for its age.

It's interesting that some buyers absolutely love an older home because of its unique characteristics, while another buyer will not love the same home for the same characteristics. This affects the offer price each might make for the same home.

There is a relationship between the age of a home and its selling price. A real estate professional can help you determine that relationship, working with all the factors that affect the selling price of a home.

Happy home shopping,
Cheryl Lyon
Coldwell Banker Residential Brokerage
801.633.6855
1 vote
Aren't you a professional. Why not list the factors, that was the question asked.
Flag Wed May 14, 2014
James Graham, Agent, Midvale, UT
Fri May 30, 2008
I agree to most of kris's answer, however I don't think appraisers look at it that way, for example; Sugar house values are insane and it has really old homes that have original wiring, plumbing, foundation and everything else except charm, flooring and paint. So I think that value still comes down to the saying of Location, location, location and asethetics.
Age is always a concern but it depends if its an old home in a newer neighborhood. Or a newer home in the old area. Which follows location location location. I do think the Eff as referenced below may just state on the tax records when the last time thier was a permit pulled on the home, for example; a garage could have been added to the property in 2005 and the home was still built in 1920. In this case there are two dates on the tax records however its a good rule of thumb to throw out that second date and go by the original date. Thanks James
0 votes
Kristopher F…, Agent, Salt Lake City, UT
Wed Feb 6, 2008
Hi Janina,

The two terms to be familiar with when it comes to a residential home appraisals are...

ACTUAL AGE:
The amount of time that has passed since a building or other structure was built.

EFFECTIVE AGE:
The subjective, estimated age of a property based on its condition, rather than the actual time since it was built. Excessive wear and tear can cause a property's effective age to be greater than its actual age.

An appraiser will grade a property when he/she completes the appraisal report using multiple factors to list the property's effective age.

A very old home that has been routinely maintained and updated over its actual life may have an effective age similar to homes biult in recent decades that have had no routine upkeep.

If you are looking at buying an older home be sure to plan on having a professional inspection. Also be sure to ask if and when any major upgrades were completed, also check to see if such work was permitted and inspected by the local municipality at the time of completion.

If you have more specific questions feel free to give me a call.

Good luck!

Kris Furrow Realtor
RealEastate.com Realtors
801.916.0815
0 votes
oknothere, Landlord, salt lake city, UT
Wed Feb 6, 2008
Janina,

The age of the home is one of many factors you use to determine the sales price of a home, but you really do have to take several things in to account. It would be nice if was just as easy as looking at age, but it is relative.

The best thing to do is to have a certified appraiser view the home or have a Licensed Realtor provide a Comparative Market Analysis (CMA). This way all factors will be taken into account and the home will be compared with homes of similar age and style to determine a fair market value for it.
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