Why do ancient homes sell for as much as brand new ones?

Discussion in 'Buying & Selling Real Estate' started by Hedonologist, Feb 13, 2015.

  1. Hedonologist

    Hedonologist Well-Known Member

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    A 10 year old car wouldn't sell for the same value as a brand new one, so why do houses not devalue over time? I wouldn't say they appreciate in value either, but it's as if 150 year of age has no effect on the value of a property. Why on earth is this?
     
  2. missbishi

    missbishi Well-Known Member

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    Ancient homes sell for as much as newly built ones for a number of reasons. This excerpt from homebuying.about.com sums them up well

    http://homebuying.about.com/od/buyingahome/qt/052307NeworOld.htm
     
  3. shilpa123

    shilpa123 Banned

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    The older homes usually have the same cost as the new house for the reason that they have better fundamental structure than the new house. They are the ones which can take any amount of torture of wind and climate.
     
  4. Rainman

    Rainman Senior Investor

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    If I was an investor, I wouldn't buy an old home at the same price a new one is selling at unless it won't need any renovations. I've seen even 20 year old homes which required so many repairs that anyone who opts to buy them ends up spending so much money that they regret having bought the property. Since they are harder to sell, the owners might hike prices because they've been on the market for so long so that when the home finally does sell, the waiting would have been well worth it. Just speculating though . . .
     
  5. Hedonologist

    Hedonologist Well-Known Member

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    I always assumed that when you bought a new house, you would know that it wouldn't need renovations for 25-50 years at least. With older houses having a lot of potential hidden problems. 125-150 years has got to take its toll on some of those Victorian houses in London.
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Land always has value, and often becomes much moreso over time, regardless of whatever happens to the dwellings themselves that are built on the land.
     
  7. Fredrick Jones

    Fredrick Jones Well-Known Member

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    Providing the lumber used in the house has not develped rot, older houses are far better constructed then modern houses. Lumber will hold together for 2000+ years, plywood which is sawdust glued together starts to fall appart after 10 years. They buyer ofcourse has to looking inside the attic and other nooks and crannies of the house to ensure the lumber is in good shape.

    Obviously if the buyer does not inspect the house, and then 5 years later he finds out he has problems, he should not blame his stupidity on the house.
     
  8. missbishi

    missbishi Well-Known Member

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    This is why I prefer an older house, every time. I know it's a cliche but things really were built to last a long time ago. Today's new builds are so cheaply made and can deteriorate really quickly. Older houses may cost a little more at times but the "solid" feeling that they have is well worth it.
     
  9. shilpa123

    shilpa123 Banned

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    Actually in my place the cost of ancient homes is much more than new ones. Because they are built very strong and can withstand any amount of stress. They also add a great aesthetic value to your place.
     
  10. Rosyrain

    Rosyrain Senior Investor

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    New homes are cheaply made these days. They are built quickly as part of big housing communities and lack the character of older homes. I like older homes for the fact that some of them have crawl spaces and other fun features. They were also built to last a very long time as opposed to newer ones. I bought a 10 year old house a few years back and things started to break quick after move in time. It was a disappointment.
     

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