Parramatta centenarian Dorothy May Moore has made the difficult decision to sell her home at the age of 103.

Built more than 200 years ago in 1816 - the year after Napoleon was defeated at the Battle of Waterloo - the historic home at 4 Rosehill Street is on the market for the first time in 133 years and has huge redevelopment potential.

The home, known as Sherbrooke, was built on a 100-acre section of farmland and was originally given to James Meehan by Governor Lachlan Macquarie.

It was built 23 years after Sydney's oldest homestead, Elizabeth Farm, in the same year as Cadman's Cottage in the Rocks.

Mrs Moore moved into the house in 1942 when she married Thomas Albert Sheridan Moore and has lived in it ever since.

Her daughter, Rhonda Hahn, said the decision to sell was a difficult one.

"Mom didn't originally want to sell after she passed away, but she realised that at almost 104 years old, it was time," she said.

"The house was never actually purchased by our family and it was bequeathed to my grandmother because she cared for the previous owners."

Ms Hahn said her family had watched Parramatta develop over the years.

"We could see all the tall buildings going up and 'the sunrise was over the tall buildings' as we watched," she said.

"This home is actually located in a small heritage pocket so we don't have tall buildings around us."

She said the family hoped the new owners would be willing to preserve this part of Sydney's history.

"There's a secret cellar, a huge 100-year-old macadamia tree in the backyard that we'll climb into, hundreds of cups of tea we've enjoyed on the verandah over the years and even room for a pony in the back," she said.

"We just wanted to see it being loved.

The three-bedroom Victorian house, located in an undeveloped high street area, is expected to attract significant interest from developers for residential lots and childcare.

Brian Prabaharan, an agent with Moxham Commercial, said there were age restrictions on the house but "there's a lot of redevelopment capacity".

"The likely outcome is that the developer will purchase the property," he said.

"It's a huge corner block, but it could also be bought by an owner-occupier who might want to preserve and restore this beautiful historic home in such a large block."

He said developers had several options.

"It's possible to convert a Victorian-style home into a business, a health service or a childcare centre," he said.

"You could also keep the historic home and build two houses on two other lots, or combine the two lots and build from a blank canvas."

He said the skeleton of the house was "beautiful" and a lot of effort had gone into maintaining it over the years.

The property, which is classified as a redevelopment project within the heritage guidelines, covers 2,229 square metres and is divided into three lots. It will go to auction on May 11.