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Article #413: Buy The Most Expensive House In The Neighborhood?

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When looking at homes, one is tempted to always going to be dragged down by the
buy the best home in a neighborhood. structures around it. If you take a
Should you buy the most expensive home on $900,000 home from a private community
the block? No. Think Long-TermAssume you and put it on a block of $250,000 track
fall in love with the masterpiece home in homes, the $900,000 value is going to
a particular neighborhood. It has come down a lot because the neighborhood
everything you could dream of: black will not support it. When you eventually
bottom pool, marble, an incredible sell, buyers are going to look at the
kitchen, top of the line windows, comps in the neighborhood and laugh at a
stunning brick work and so on. The $900,000 asking price. The second problem
sellers obviously put a lot of time, is "hemming." Since you own the most
effort and money into the home. expensive house in the neighborhood, your
Accordingly, it stands out as the pearl appreciation potential is already
on the block. Why wouldn't you want to limited. This becomes a bigger problem if
snap it up immediately?Before you start you want to remodel or add on to the
signing documents, take a look at the home.
sales prices of comparable homes, Taking such action would typically add to
"comps", in the neighborhood. the value of a home. With the most
If you compare the comp prices to the expensive home, not only will it not add
dream home, you should notice a pretty value, it may cut into your equity. Why?
significant price difference. This If you do a $50,000 remodel, you may see
difference should act as a metaphorical a $10,000 gain for your $50,000 cost. You
slap in the face or pouring of cold water just lost $40,000. Dream or
over your head. The dream home is NightmareUnless you can accurately
undoubtedly selling for a price range far predict an increase in valuations for an
beyond the comps. Warning lights should entire neighborhood, you shouldn't buy
be going off at this point. You are going the most expensive home on the block.
to have a problem if you give into If you do, the dream home could quickly
temptation and purchase the most turn into a nightmare. Raynor James is
expensive home on the block. In fact, you with FSBOAmerica.org - a FSBO homes for
are going to have two problems. sale by owner site. Visit our "Sell My
The first problem is the appreciation of Home" page to list your FSBO Home or
the value of the home. The appreciation visit our home buying page to see homes
on the best home in a neighborhood is for sale.






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