My OperaBuying A Home - Is The Largest Home In a Community The Best Value?
Wednesday, September 22, 2010 3:15:36 AM
How often have you been advised to avoid buying the biggest or most expensive house in a neighborhood? Somehow, the assumption is the larger, more expensive home won't appreciate as much due to the surrounding smaller, less expensive homes. Therefore, when it comes time to sell the larger home, you'll receive less profit due to a lower appreciation rate. If you really think about this concept, it doesn't make sense.
Let's say the smaller home appreciates at a rate of 6% per year, and the bigger home appreciates at a rate of only 2%. With the passing of time, the smaller home would have a higher resale price than the larger home-which of course wouldn't happen. Implementing the rules of compound interest, we find this assumption to be untrue, just like the claim the nicest communities always appreciate faster.
You would have a difficult time locating a scenario where a smaller property had a higher resale value than a larger property in the same area. If you're contemplating the purchase of a larger home surrounded by smaller neighboring homes, your decision should be based on whether the home suits your needs, objectives, and is priced correctly relative to the smaller homes. If you have the opportunity to pick up the property at a bargain price for not much more than a smaller home, it may be a great deal. But if the market price is unreasonably high, you might want to keep looking.
When you encounter the largest and most expensive homes in a neighborhood, pay special attention. Don't assume the largest home wouldn't be a great opportunity. Instead, spend time carefully analyzing if it's a good value. Determine if you're getting a lot more home for the money. You could discover a hidden deal.
Equally as essential is the analysis of a home's size and features in comparison to your preferences and potentiality. If you plan on having your in-law's live with you or plan to operate a business from home or just want to enjoy a spacious atmosphere, choosing the largest square footage home that's encompassed by smaller homes might fulfill your home buying needs at a bargain price.
You should also learn to be creative. Just because you don't need to utilize all the extra space in a larger home doesn't mean you can't put it to good use. Could you use an area to paint your art, set up the home library, or create crafts? What about the option of renting out one or two rooms for extra money or changing a section of the home into a mother-in-law a suite?
As you shop the local real estate market, take the time to view the largest homes in a community of smaller homes and analyze each one for its money making potential
Don't waste valuable time searching for the perfect homes for sale in Fullerton, save precious time by utilizing these qualified Fullerton Realtors to help you find the best one.This article, the best article ever, kindly provided by UberArticles.com
