MOST EXPENSIVE HOME IN THE NEIGHBORHOOD”
provides you with a great sense of pride and satisfaction. Your home is a statement
about yourself. It is also only human nature to compare your home with those of
your friends and neighbors.
If your home is the most expensive home on the block, it may make you feel good,
but you could have a problem when the time comes to sell. Surrounding homes of
lesser value will have a tendency to lower the price you will get for your home.
Most buyers decide upon an offering price that is based on the selling price of
other homes in the immediate area. Because neighboring homes have been bringing
prices below what you want for your home, a prudent buyer will be hesitant to
invest in a price range above surrounding properties.
Some people buy the best home in an area because they are able to buy it at a
lesser price than if it was located in an area of equally expensive homes. It
seems to make sense when you are the buyer, but you will not realize the same
inflation in value available to similar homes in better locations.
Many homeowners have the best house in the area because they have made costly
improvements to their home ever a period of time. These improvements might have
been necessary to provide for the needs of a growing family. They may now, however,
have to be considered over-improvements because they have priced your home out
of the market.
If you are considering making improvements to your home, be sure to add up all
the dollars you will have invested in your property by the time improvements are
completed. After this analysis, will you be able to sell your home at a price
that is typical for your area, or will you be the victim of an over-improvement?
Whether buying your next home or improving your existing home, don’t allow
yourself to have a larger financial investment than any of your neighbors. It
could be a very costly mistake.
ADVICE: Don’t make a buying decision of this magnitude
without the assistance of a knowledgeable Realtor® who can provide you with
the information you need.