subject: Buying A Home - Is The Largest Home In A Community The Best Value? [print this page] As a new home buyer, you may have been exposed to the recommendations of other seasoned Realtors to cross off the biggest or highest priced home in a neighborhood. The rationale for this advice is based on the belief the surrounding smaller, lower priced homes will negatively lower the value of the larger home. Therefore, when it comes time to put the larger home on the market, you'll fetch a lower price compared to other comparably sized properties. If you stop to ponder on this concept, you'll come to the conclusion it doesn't make sense.
Let's set up a fictitious scenario where smaller home increase in value at the rate of 6% per year and a larger home at 2% per year. Over the years, the smaller home would surpass the value of the larger home-which is unlikely to occur. If you understand the rules of compound interest, you'll find this theory flawed, similar to the false belief that the best neighborhoods always increase in value the fastest.
You would be hard pressed to find a smaller square footage home selling higher than a larger square footage home in the same neighborhood when you view a home listings. As you search the local real estate market, keep your eyes open for larger homes enveloped by a community of smaller homes. If the larger home suits your lifestyle, goals, and is value priced in relation to the smaller homes, you might want to give it serious consideration. If you can snatch the property for just 10% more than the smaller homes encompassing it, it might be a great opportunity.
As you view homes for sale, don't automatically reject the largest or most expensive properties in a community. Take the time to do a value comparison. You could pick up a home with good value.
You should also take note of the property's square footage and attributes and compare them against your needs and dreams. If your family has a lot of members or you need extra space for a home office or just want the luxury of a bigger home, selecting the largest property in a neighborhood of smaller square footage homes by satisfy your lifestyle needs and conserve your money.
Try using your imagination. While you could get by with less square footage, try to imagine other possibilities to take advantage of the extra space. Have you ever wanted to set up an area to do crafts, read books, or just work on your hobbies? What are the possibilities of renovating part of the house into a guest unit or supplementing your mortgage payment with income generated from one or two roommates?
As you view the largest homes in a community of smaller homes, evaluate each one for income potential and affordability.
