This loss of value with age is called physical depreciation. Buildings don t necessarily decrease in value at a steady rate. Good maintenance and periodic upgrades can extend the economic life of a building. Buildings go out of style and become obsolete, regardless of how well they have been cared for. Even if the building is in good shape, the floor plan may be awkward and the fixtures outdated.
Some buildings suffer from botched remodeling jobs.
Other buildings are just badly designed to begin with. This loss of value due to diminished functional utility is called functional depreciation. A professional building inspector can do a thorough investigation that will reveal deferred maintenance, outdated features and bad construction. The buyer usually pays for this and should accompany the inspector during the investigation. You should also ask for a professional pest report, roof inspection, well and septic inspection, structural engineering report and even a structural geology report if you suspect problems in these areas.