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.
It’s would be rare to find a situation where a larger home in a community sold for less than a smaller home. You’d be searching quite a few properties in a neighborhood to validate this fact. Whether the biggest house in a community is a good value for you hinges on your needs, your goals, and the home’s price compared to those encircling it. If you can purchase the larger home for just a little more than a smaller one, maybe it’s a good deal. But if you have to pay 50% more for the larger home, it won’t be worth it.
The next time you come across the largest home in a neighborhood, spend some time researching to see if it’s a good buy. You might be surprised at what you discover.
Equally as essential is the analysis of a home’s size and features in comparison to your preferences and potentiality. If you plan on having your in-law’s live with you or plan to operate a business from home or just want to enjoy a spacious atmosphere, choosing the largest square footage home that’s encompassed by smaller homes might fulfill your home buying needs at a bargain price.
Think about the potential options you have with all that extra room. What features have you always wanted in a home but never had the extra room for? Have you ever dreamed about setting up your own art library at home or a home gym or an arts and crafts area? Would you be able to rent a portion of the house to roommates for extra income or convert part of it into an in-law suite?
As you shop the local real estate market, take the time to view the largest homes in a community of smaller homes and analyze each one for its money making potential
Don’t waste valuable time searching for the perfect homes for sale in Fullerton, save precious time by utilizing these qualified Fullerton Realtors to help you find the best one.
