Oakville Real Estate News

Actual Age vs. Effective Age

Blog by Joette Fielding | July 4th, 2016

New-build-vs-old-home-1000.jpgThe actual, historical age of a home is straightforward: it is simply the number of years that have elapsed since building construction was completed. The effective age, however, takes into account the condition and utility of the building, and is the age the property appears to be.

Lack of proper maintenance can increase the effective age of the building to more than its chronological age, while a home that has been not only properly maintained but also updated to extend its life and renovated to align to today’s market expectations can present as a newer property, at a lower effective age.

When updating your home to lower its effective age, it’s important to prioritize where your renovation dollars are going. For example, there’s no point spending the money on beautiful marble countertops in the kitchen when the roof is leaking and the building’s foundation is crumbling!

Before starting on any renovation project, it’s important to fully understand your neighborhood and the area’s value range. In other words, if you already have the most updated house on your street, or the most renovated condo in your building, then spending more money on additional renovations may have no impact on your home’s resale value.

Ask for details about local properties to help you decide what type of home improvements can add value to your property for the purpose of resale, even if you’re not planning to sell anytime soon.


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