subject: Three quick tips for selecting the right home [print this page] Three quick tips for selecting the right home
Selecting the right home can be one of the most inspiring projects you will ever undertake, but sometimes the stress can be quite overwhelming and take the fun out of the experience. Every prospective home buyer wants to make the best choice possible when investing so much money and time over the long-term. In addition, most homeowners are also concerned about getting the highest price possible if they ever end up selling the property in the future.
Here are three quick considerations to help you choose the right home.
The principle of progression
You might want to consider buying one of the cheaper homes in the neighborhood, because the principle of progression says that your property's value may be enhanced in the future simply by being close by to more expensive properties. Obviously, you want to be careful in this situation as well, since the home you're looking at may be significantly cheaper because of incurable defects.
Perhaps the home is really an eyesore or is located next to some undesirable place like a garbage dump. Or perhaps the problems are curable only if you're willing to spend a ton of money rebuilding a foundation or putting in new plumbing!
The principle of regression
Yes, as you may have guessed already, this principle is the opposite of the above scenario. Still, we wanted to go over it quickly in order to emphasize some of the problems you may encounter if you purchase one of the most expensive properties in your neighborhood.
If the home you're considering is already significantly more expensive than other homes in the neighborhood, it may be difficult for the home's value to increase over the next several years. Just as the principle of progression rewards you when buying a cheaper home, the principle of regression can punish you when it comes time to sell your home. You can put in new floors or kitchen cabinets totaling tens of thousands of dollars, and you still may not be able to sell the home for more than you paid. In fact, in some situations you may even have to sell your home at a loss.
This is simply because prospective buyers are unlikely to pay so much for your home when it is surrounded by less expensive homes.
The principle of conformity
The idea of conformity is that your home should not deviate drastically from the style, condition, size, or age of the rest of the houses in your immediate area. This doesn't mean that you have to completely stifle your creativity, but your home should not stick out like a sore thumb because of its unusual size or style.
