Ordinary maintenance that is not
performed and negatively affects a
property’s use and value.
Example of
Deferred Maintenance
Seller has owned his present home for
ten years and is now offering it for sale
through a local brokerage. The roof on the
home is approximately 25 years old and is in
need of replacement. Smith, despite its
unsightly appearance and potential for
leakage, elects not to replace the roof in
hopes that the property will sell. While he
may be avoiding an immediate cash outlay,
the market value of the home is probably
affected by his decision. Ironically, the
ultimate selling price of the home may be
less than if he replaced the roof and added
this cost to his asking price. The obvious
poor state of the roof may limit the number
of buyers seriously considering the
property. Buyers may fear that other items
have also not been maintained on the
property.
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