Does the purchase price of a house
reflect its quality?
The purchase price of a house primarily reflects the cost of materials, finishes, and equipment. Built into that cost, are the life expectancies of those components. Typically, components that have a more sustainable longevity cost more initially. Consequently, their maintenance cost over their lifetime may be significantly reduced. Examining the total cost of materials, finishes, and equipment when purchasing a house should take into account the maintenance costs over the expected life of the components - the "life-cycle" costs.
Dr. Ronn Phillips, Arch.D., Bobbi Hauptmann, Architectural Studies, College of Human Environmental Sciences, University of Missouri-Columbia
Last update: Monday, May 18, 2009