When you buy the nicest house in the area, your house will naturally appreciate at a much slower rate than the simplest home in the neighborhood. The reason being is that any improvement or renovation you make on the simplest home will immediately add value to the home. However, if you buy the nicest home in the neighborhood, your home is already valued at the top of the market and will, therefore, appreciate at a slower rate.
In addition, when you are selling a mid-range or low-range home and other houses are selling in your neighborhood, the value of your home will naturally be increased. When you are selling the nicest home in the neighborhood, the sale of other homes in your neighborhood does not raise the value of your home since you are already valued at the top of the market.
The nicest home in the neighborhood will also be harder to resell than a mid-range house in the same neighborhood. There is a select number of buyers looking to purchase the nicest home in the neighborhood. Most of the market prefers to buy a home in the mid-range of the neighborhood. People care what the neighborhood looks like along with the house itself. Buyers tend to be turned off if the house itself is beautiful but it is not surrounded by equally beautiful homes.
Finally, no one can predict the future of the real estate market. Buying a home is an investment and there is no guarantee that the property will appreciate which makes buying a mid-range home more appealing to prospective buyers.
For all of your real estate needs, please contact the Hornburg Real Estate Group at Keller Williams Realty at DallasFtWorthHomeSearch.net or (817) 264-7087.