WHAT IS THE DIFFERENCE BETWEEN A 100 YEAR OLD AND A 25 YEAR OLD HOME?
Conrad brought out some great points in this blog about the effective age of a house. If a home is updated and well cared for it's effective age is much less than a home that needs repairs.
As an appraiser I have to deal with this question every time. As a Realtor it also enters into the market value valuation. There are homes that are 100 years old that have an effective age of 15. There are 25 year old homes that have an effective age of 40. How can that be? Why aren’t the two the same number?
Let’s take the 100 year old home. The roof, heating system, electrical system, kitchen and bathroom were all replaced less than 10 years ago. So it is just the bones that are 100 years old. The effective age on this structure would be in the 10-15 year range.
The 25 year dwelling with a roof that leaks. A heating system that needs to be replaced, leaking plumbing, private sewerage that needs to be replaced, holes in the walls, torn up floor coverings, etc. This property has aged poorly and its effective age is a lot more than the actual age.
It is kind of like people you know.
So what’s your effective age?
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