Exploring Real Estate Market Trends

Why You Shouldn't Buy The Best House In The Neighborhood

If you have identified a neighborhood and you are hunting for a home for sale, don't think that you have to buy the best or biggest house in the area. Look for a suitable house you can afford because the best house in the neighborhood may not be the best one for you. Here are some disadvantages of buying the best house in a particular neighborhood:

Such Properties Experience Slow Appreciation

Most people own several homes in their lifetime. This is why it's advisable to consider the resale prospects of any property you wish to purchase even if you don't have concrete plans for selling it yet. For example, you may need to downgrade if your financial situation tanks or upgrade if your family's size increases.

Unfortunately, the best houses don't appreciate as fast as the worst houses or even the average houses.  This means you may not realize much profit if you eventually sell the house.

Reselling the Property May Be Difficult

Selling the best house in the neighborhood is not easy. For one, the house will be priced slightly more than its neighbors. This may be the case if the house is bigger, looks better and has more high-end amenities than the neighboring properties. Unfortunately, those who will be attracted to the neighborhood will be more likely to afford the average houses in the area and not the most expensive ones in the area.

It's like You Are Buying the Construction and Not the Lot

The true value of a property depends on the location; the actual construction doesn't contribute much to the price. This is why a five-bedroom house that sits on a coveted beach lot may be priced several times more than a similar house that sits in the middle of nowhere. Unfortunately, if you are buying the best house in an area, it's like you are paying more for the house because even the neighboring houses are sitting in the same area but are not valued as much as your house.

It Provides You with Limited Opportunities for Improvement

Lastly, one of the reasons houses appreciate is because their owners improve them. If you buy a home without a swimming pool in a neighborhood where homeowners like having swimming pools, adding a swimming pool may increase the value of the property tremendously. However, if the house is already excellent as it is, there is little you can do to improve it, and its value might not improve much.