Which Offers The Best Value-A Larger Home Or A Smaller One?
When shopping for homes, you family and friends may suggest you cross off the biggest or highest priced home in a community. 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.
When you encounter the largest and most expensive homes in a neighborhood, pay special attention. Don\’t assume the largest home wouldn\’t be a great opportunity. Instead, spend time carefully analyzing if it\’s a good value. Determine if you\’re getting a lot more home for the money. You could discover a hidden deal.
It\’s also important to research the size and features of the bigger home and compare them to your object\’s and future goals. If you have lots of children or plan on setting up a home office or just want to live comfortably, the biggest home in a community of smaller homes may be your best value for the money.
You should also learn to be creative. Just because you don\’t need to utilize all the extra space in a larger home doesn\’t mean you can\’t put it to good use. Could you use an area to paint your art, set up the home library, or create crafts? What about the option of renting out one or two rooms for extra money or changing a section of the home into a mother-in-law a 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
Are you having trouble locating the best Davis homes for sale? then contact these local experienced Davis Realtors to help you find one.
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