Buying A Home - Should You Buy The Biggest Home In A Neighborhood?
As a new home buyer, you may have been exposed to the recommendations of other seasoned Realtors to cross off the biggest or highest priced home in a neighborhood. The rationale for this advice is based on the belief the surrounding smaller, lower priced homes will negatively lower the value of the larger home. Therefore, when it comes time to put the larger home on the market, you'll fetch a lower price compared to other comparably sized properties. If you stop to ponder on this concept, you'll come to the conclusion it doesn't make sense.
Let's consider an imaginary situation, suppose a smaller property in a community was to increase in resell value by 6% per year and a larger property at a modest 2% per year. In a matter of several years, the smaller property would outpace the larger property in resale value-which would be unrealistic. If you apply the rules of compound interest, this concept falls flat on its face, just like the myth that high demand communities enjoy an accelerated appreciation rate.
It's would be rare to find a situation where a larger home in a community sold for less than a smaller home. You'd be searching quite a few properties in a neighborhood to validate this fact. Whether the biggest house in a community is a good value for you hinges on your needs, your goals, and the home's price compared to those encircling it. If you can purchase the larger home for just a little more than a smaller one, maybe it's a good deal. But if you have to pay 50% more for the larger home, it won't be worth it.
As you view homes for sale, don't automatically reject the largest or most expensive properties in a community. Take the time to do a value comparison. You could pick up a home with good value.
You should also take note of the property's square footage and attributes and compare them against your needs and dreams. If your family has a lot of members or you need extra space for a home office or just want the luxury of a bigger home, selecting the largest property in a neighborhood of smaller square footage homes by satisfy your lifestyle needs and conserve your money.
Try using your imagination. While you could get by with less square footage, try to imagine other possibilities to take advantage of the extra space. Have you ever wanted to set up an area to do crafts, read books, or just work on your hobbies? What are the possibilities of renovating part of the house into a guest unit or supplementing your mortgage payment with income generated from one or two roommates?
As you view the largest homes in a community of smaller homes, evaluate each one for income potential and affordability.
Article Source: FxTradingStock.com
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Are you tired of spending so much time searching for the perfect Fullerton real estate? Save time by using these local Fullerton real estate agents to locate one.
by: Sarah P. Shimanski
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Word Count: 480
Date: Mon, 26 Jul 2010
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