Published August 23, 2022
3 Reasons NOT to Buy the Nicest Home in the Neighborhood
We all want a nice house, right?
If you’re anything like most of my buyers, you’ve likely had your eye on your ideal neighborhood for some time now. Maybe you’ve taken drives through it, or walked down its streets. Maybe you’ve even toured a few houses and are still waiting on your dream home... But guess what?
Sometimes that dream house isn't the best investment. Here’s the thing about houses… Sure, they’re where we build our families, but they’re also massive investments. For most of us, buying a house is the biggest financial investment we’ll ever make. And while we want to feel all warm and fuzzy about the idea of our picture-perfect home, it’s still important to consider resale value.- Here are 3 things to consider before you buy that dream house in your dream neighborhood...
Tip #1: Buyers Want Mid-Range Homes
You know what comes with that big, fancy house you’ve been eyeing? A big, fancy mortgage. Many people are happy to opt for a lower-priced home in their ideal neighborhood, making mid-range homes more in-demand. And when demand goes up, the price follows. If you take a look, you’ll find that mid-range homes actually bring in a higher price per square foot than bigger homes in the same neighborhood. This is a really important resale factor to consider.
Tip #2: Your Home Value Is Set By Your Neighbors’ Homes
Even if you have the least expensive home in the neighborhood, the expensive homes around yours will actually drive your home value up. But if you have the most expensive house? The other homes will drive your home value down. So buying a mid-range home may actually put a higher percentage of profit in your pocket when you sell down the road!
Tip #3: Your Home Will Be Harder To Sell In Tough Times
If the market shifts, and it does about every 7 years, you may be stuck at the top of the market in your area. In tough markets, buyers tend to opt for less expensive homes in hopes of getting a better deal.
All this makes it super important to work with an agent who understands the importance of resale value.
