{"id":257,"date":"2015-11-05T18:10:53","date_gmt":"2015-11-05T18:10:53","guid":{"rendered":"https:\/\/clarksvilletnrealestateforsale.com\/?p=257"},"modified":"2015-11-05T18:10:53","modified_gmt":"2015-11-05T18:10:53","slug":"why-you-should-never-buy-the-best-house-in-the-neighborhood","status":"publish","type":"post","link":"https:\/\/clarksvilletnrealestateforsale.com\/?p=257","title":{"rendered":"Why You Should Never Buy the Best House in the Neighborhood"},"content":{"rendered":"

Home<\/a>>Advice<\/a>>Buy<\/a><\/p>\n

BUY<\/a><\/span><\/header>\n

Why You Should Never Buy the Best House in the Neighborhood<\/h1>\n
\n
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By<\/span>
\nJamie Wiebe<\/a><\/span><\/p>\n

\"best-house\"<\/a>
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Dimitri Otis\/Getty Images<\/p>\n<\/figcaption><\/figure>\n

When you\u2019re house hunting, finding an\u00a0amazing house in your location of choice that doesn\u2019t require much additional investment seems like a huge score.<\/p>\n

But\u00a0is it really? Before making an offer on that picture-perfect home, take a look at the surrounding houses. If they\u2019re all in disrepair\u2014or just obviously less nice than the one you\u2019re considering\u2014you might be buying the most expensive house in the neighborhood.<\/p>\n

Maybe that seems awesome because you\u2019ll get bragging rights and price of place! But more than likely, it\u2019s going to hurt you. Here\u2019s why.<\/p>\n

Someday you\u2019ll need to sell it<\/h2>\n

When you\u2019re in the throes of buying a home, it\u2019s easy to forget that the place you\u2019re busy\u00a0buying will someday be the place\u00a0you\u2019re selling. And when it comes time to sell,\u00a0unloading the priciest home on the block will be a\u00a0challenge.<\/p>\n

<\/h4>\n

\u201cA lot of buyers forget a home is an investment,\u201d says\u00a0<\/span>Brendon DeSimone<\/strong><\/a>, a real estate expert and author of \u201cNext Generation Real Estate<\/a>.\u201d\u00a0\u201cThe world changes. Things happen fast. People transfer, people lose their jobs. Now imagine yourself as the seller of that home.\u201d<\/p>\n

So you\u2019re hanging by a thread: As it is, someone might buy it\u2014after all, you did\u2014but\u00a0there\u2019s no way to increase your equity in the home.\u00a0With your house already significantly nicer than\u00a0its neighbors,\u00a0any upgrades (however minor) will send it into\u00a0the stratosphere. That quality\u00a0mismatch between your home and the surrounding homes\u00a0will lead most\u00a0buyers to pass on it. If they\u2019re going to spend that much money, why wouldn\u2019t they\u00a0buy a home in a more desirable neighborhood?<\/p>\n

The best you can hope for is your home holding its value. The worst-case scenario: You can\u2019t sell it.<\/p>\n

\u201cYou can change your house, but you can\u2019t change your location,\u201d DeSimone says.<\/p>\n

You need to leave room for improvement<\/h2>\n

As\u00a0we said before, a home is an investment\u2014and the best investments have the most room for improvement. Ideally, you\u2019ll be adding to the home during your ownership,\u00a0building\u00a0equity in hopes of a payoff when you (eventually) sell.<\/p>\n

That\u2019s why DeSimone\u00a0actually recommends buying the worst house in the best neighborhood. Yes, you read that correctly.<\/p>\n

\u201cYou can add value on your own,\u201d he says. \u201cIf you\u2019re choosing\u00a0between an awesome house in a crappy location or an awful house in a great location, I would choose the latter.\u201d<\/p>\n

<\/h4>\n

Note that \u201cimprovement\u201d doesn\u2019t necessarily entail a complete renovation. Even the small changes that happen\u00a0when you\u2014a responsible person\u2014move in will increase its value. We\u2019re talking about things such as\u00a0regular maintenance, refreshing the paint, and fixing the odds and ends that might go ignored by another\u00a0occupant. But if your\u00a0home is already priced well above the rest of the neighborhood, those tiny changes won\u2019t make a lick of difference.<\/p>\n

You can\u2019t bet on the neighborhood to improve<\/h2>\n

If you\u2019re buying the nicest house on the block hoping the neighborhood will improve, you\u2019re putting a lot of stake in a volatile market\u2014and you\u2019re more likely to be disappointed (and possibly even go broke).<\/p>\n

Ideally, the chain of events goes like this: You buy your nice home in an up-and-coming neighborhood. Over time\u2014thanks, gentrification\u2014the homes around you improve\u00a0until\u00a0all of your neighbors are pretty much on the same footing.\u00a0Because the\u00a0area has improved so drastically,\u00a0your home\u2019s value will still increase.<\/p>\n

It\u2019s a wonderful\u00a0idea,\u00a0and it is certainly realized\u00a0occasionally<\/em>. Too bad Magic 8 Balls don\u2019t really work. For each time this strategy works, there are a dozen\u00a0others in which\u00a0homeowners end up with an overpriced, unsellable home in a middling neighborhood.<\/p>\n

If you\u2019re\u00a0eager to live in a neighborhood with potential, \u201cbuy a bad house,\u201d DeSimone says. \u201cAt least\u00a0you can improve the interiors and make it more valuable. If that neighborhood doesn\u2019t\u00a0actually<\/em>\u00a0<\/span>\u2018up-and-come,\u2019 your\u00a0expensive home is already as viable as it can be.\u201d<\/p>\n

Sometimes, betting on your home can pay off\u2014but risking your home? That strategy might sacrifice everything.<\/p>\n<\/section>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

Home>Advice>Buy BUY Why You Should Never Buy the Best House in the Neighborhood By Jamie Wiebe 6:00 am ET November 5, 2015 Dimitri Otis\/Getty Images When you\u2019re house hunting, finding an\u00a0amazing house in your location of choice that doesn\u2019t require much additional investment seems like a huge score. But\u00a0is it really? Before making an offer … Continue reading Why You Should Never Buy the Best House in the Neighborhood<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-257","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/posts\/257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=257"}],"version-history":[{"count":1,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/posts\/257\/revisions"}],"predecessor-version":[{"id":258,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/posts\/257\/revisions\/258"}],"wp:attachment":[{"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}