Definition
Age adjustments account for value differences caused by building age. Newer homes typically command premiums, but well-maintained older homes might not need significant adjustments. Age isn't destiny; condition matters more.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Age adjustments account for the value impact of property age, newer homes typically commanding premiums over older homes due to modern construction standards, updated systems, and reduced maintenance needs. However, age adjustments must be carefully distinguished from condition adjustments—a well-maintained 50-year-old home may not require significant age adjustments if comparable homes of similar age are selling at similar prices. Age adjustments are typically smaller in stable residential neighborhoods.
Pro Tip
Don't assume older homes are worth less. A maintained 50-year-old home might rival new construction value. Focus on condition and updates, not just age.
Example
A comparable home built in 1995 sold for $420,000. The subject property was built in 2015 with similar characteristics. An age adjustment of $15,000 is made to account for the subject's newer construction.