Let’s talk about The Top 3 reasons why the most expensive home in the neighborhood isn’t always as dreamy as it sounds.
Who doesn’t want a nice house?
If you’re like most of my buyers, you’ve probably had your eye on your ideal neighborhood for quite some time now. You’ve cruised around to check it out or walked your dog down the streets. You might have looked at a show home or two in the area as well.
Here’s the thing about houses…
They’re where we build our families and memories, but they’re also massive investments. You hear it all the time and it’s true that for most of us, buying a house is the biggest financial investment we’ll ever make. 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
- When the market shifts, 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 of this makes it super important to work with an agent who understands the importance of resale value.
If you have questions about anything I covered, or if you’re thinking about making a move, feel free to message me here. I’m always happy to help!