Despite the fact that you are a final decision maker when purchasing a home, majority of professional agents will not advice you to buy the best house in the neighborhood. There are many reasons for their stand, which are discussed below.
However, some real estate property for sale buyers will discard this popular wisdom and opt to buy the best house in the neighborhood. Since the buyer is the ultimate decision maker as the owner of the property. This might also have some advantages to the buyer.
As a buyer it is advisable to do a thorough due diligence on the neighborhood that may affect you later. This will enable you to understand what you are getting yourself into.
The following are the pros and the cons of buying the best house in the neighborhood.
The Pros Of Buying The Best Home In The Neighborhood Include:
- If You Do Not Want To Compromise On Your Standards
If you are financially endowed then it is good to go for what you desire, irrespective of the neighborhood. Since you are not buying the property for investment purposes, it is good to go for what you want and will not mind low returns if you want to sell it
- If You Prefer A Perfect House For Your Home
When are not interested in reselling the property in future at a higher price through making any repairs, renovations or improvements. Your main aim buying such house is to reward yourself for the hard work, with a nice home.
- Some Features On That Specific Property That Cannot Be Found Anywhere Else
Conventional wisdom can be ignored, if you are ready to pay more for specific features on a particular property that cannot be found elsewhere. For instance, your purchase will make sense if you opt for a house with an elevator that cannot be found elsewhere. There are features that can influence the purchase of some properties.
- You Want To Show Off Your Life’s Accomplishments.Let Us Face It – Many people like to embellish. Certain folks like to show off what they have achieved. A sizeable expensive house is a perfect way to do that.
The Cons Of Buying The Best Home In The Neighborhood
Many real estate property for sale realtors and conventional wisdom is against buying the best house in the neighborhood if possible.
The Value Appreciation For Your House Will Be Far Below The Neighborhood Average.
Normally the value of a house or any landed property is expected to grow over time. The value growth is usually referred as the appreciation rate. Unfortunately, the appreciation rate for the best house in the neighborhood is lower than other properties.
Paradoxically the worst houses in the neighborhood will appreciate at a higher rate than the best homes.
It Is Contrary To The Principle Of Progression In Real Estate
This is a theory that states that, the less expensive properties will appreciate when they are surrounded by property that is more expensive.
The Lender Might Not Appraise You At The Value You Are Looking
Lenders are reluctant to finance properties that have been overpriced, depending on the neighborhood.