You might be asking yourself is it a good idea to buy the most expensive home in a neighborhood. The only problem with buying the most expensive house on the block is you may be faced with the principal of regression which can affect you with severe consequences when you sell. If the value of the surrounding properties are lower, it can bring down and lower the value of your home.
If you hear a voice in your ear telling you to go for the most expensive home a block so you can show off the home to all your friends and family so they can see how nice a house you bought, don't listen to it. If you listen to this bad conscience, you could end up losing tons of money when you dispose of the property years later. The temporary fulfillment you get in the beginning will turn into a nightmare when you list the home for sale. Instead, make a better choice by investing in a property such as one of the less expensive homes in a nice neighborhood.
Buying the most expensive home in a neighborhood can be a nightmare for remodeling. Let's say you buy a $300,000 home in an area where it surrounded by lots of $200,000 homes. If you were to consult with other professional in the real estate business, they'll tell you the home stands out as a bad investment. Spending another $50,000 to remodel the kitchen when the home is already overpriced only adds more to your problems.
Fixing up and remodeling a new kitchen will not increase your homes value to $350,000. No one can argue you spent $50,000 to remodel the kitchen, and you even have all the receipts to prove your expenses. However, most home buyers who want to buy a home in the $300,000 range don't want to be engulfed by other homes that are worth a lot less than the one they're purchasing.
Homes can be compared to a kettle. When you fill it with too much water, it will overflow. By the same comparison, when you make too many repairs and renovations to a home compared to the features of other comparable homes in an area, all the money you spend on renovations is thrown down the drain. This condition is called over improving a property.
If you made a wise decision of not listening to your conscience and buying the most expensive home in a neighborhood, you have to be careful about over improving the cheapest home in an area. Over improving the lowest price home to get you into the same financial disaster as buying the most expensive home in the neighborhood. The best way to protect yourself against spending too much on your property is to do your financial calculations before you start renovations. After all calculations, if you're going to end up spending the most money just to own a home in a neighborhood, don't buy the property.
If you hear a voice in your ear telling you to go for the most expensive home a block so you can show off the home to all your friends and family so they can see how nice a house you bought, don't listen to it. If you listen to this bad conscience, you could end up losing tons of money when you dispose of the property years later. The temporary fulfillment you get in the beginning will turn into a nightmare when you list the home for sale. Instead, make a better choice by investing in a property such as one of the less expensive homes in a nice neighborhood.
Buying the most expensive home in a neighborhood can be a nightmare for remodeling. Let's say you buy a $300,000 home in an area where it surrounded by lots of $200,000 homes. If you were to consult with other professional in the real estate business, they'll tell you the home stands out as a bad investment. Spending another $50,000 to remodel the kitchen when the home is already overpriced only adds more to your problems.
Fixing up and remodeling a new kitchen will not increase your homes value to $350,000. No one can argue you spent $50,000 to remodel the kitchen, and you even have all the receipts to prove your expenses. However, most home buyers who want to buy a home in the $300,000 range don't want to be engulfed by other homes that are worth a lot less than the one they're purchasing.
Homes can be compared to a kettle. When you fill it with too much water, it will overflow. By the same comparison, when you make too many repairs and renovations to a home compared to the features of other comparable homes in an area, all the money you spend on renovations is thrown down the drain. This condition is called over improving a property.
If you made a wise decision of not listening to your conscience and buying the most expensive home in a neighborhood, you have to be careful about over improving the cheapest home in an area. Over improving the lowest price home to get you into the same financial disaster as buying the most expensive home in the neighborhood. The best way to protect yourself against spending too much on your property is to do your financial calculations before you start renovations. After all calculations, if you're going to end up spending the most money just to own a home in a neighborhood, don't buy the property.
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Want to find out more about Cindee Cano Realtor, then visit Cindee Cano's site on Orange County homes at http://cindeecano.com/huntington-beach-real-estate-agents-homes-for-sale for your real estate needs.
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