Why You Shouldn't Buy The Best House On The Block
When you're house hunting, finding an amazing house in your location of choice that doesn't require muchFinding an incredible home in the location you're looking to buy that also doesn't need very much additional investment sounds like a dream! But before you make an offer on that dream home, take a peek at the surrounding home and the neighborhood. If they're very obviously less impressive than the one you're looking at, even worse- all in disrepair, then you might be making an offer on the most expensive house in the neighborhood. That might seem really exciting at first- bragging rights! But it will more than likely hurt you in the long run. Keep reading to learn why you shouldn't buy the best house on the block, and click this link to learn more.
Someday you'll need to sell it
When you're in the throes of buying a home, it's easy to forget that the place you’re busy buying will someday be the place you're selling. And when it comes time to sell, unloading the priciest home on the block will be a challenge.“A lot of buyers forget a home is an investment," says Brendon DeSimone, a real estate expert and author of "Next Generation Real Estate.” "The world changes. Things happen fast. People transfer, people lose their jobs. Now imagine yourself as the seller of that home."So you're hanging by a thread: As it is, someone might buy it—after all, you did—but there's no way to increase your equity in the home. With your house already significantly nicer than its neighbors, any upgrades (however minor) will send it into the stratosphere. That quality mismatch between your home and the surrounding homes will lead most buyers to pass on it. If they're going to spend that much money, why wouldn’t they buy a home in a more desirable neighborhood?The best you can hope for is your home holding its value. The worst-case scenario: You can't sell it."You can change your house, but you can't change your location,” DeSimone says.