The Importance of Doing Your Homework Before Buying a Home

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Today, we want to explain why you shouldn’t buy the most expensive home on the block. Assuming you and your agent have actually checked the price of the home against sold comparables in the area, and the home is actually worth the asking price, you still may want to be careful.

If you purchase the most expensive home on the block, it may be anchored down on its appreciation due to the large drag the average home price in the neighborhood will have on it. It will also likely be difficult to sell down the road due to the fact that it’s overbuilt for the neighborhood.

It’s absolutely critical that you research the neighborhood thoroughly before you buy. If you want your home to have resale value, check the average price point for the neighborhood and try to avoid buying the most expensive home in the area.

If you have questions about this or any other real estate topic, please don’t hesitate to reach out to us. We would love to hear from you!