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 Tustin homes for sale 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 consider an imaginary situation, suppose a smaller property in a community was to increase in resell value by 6% per year and a larger property at a modest 2% per year. In a matter of several years, the smaller property would outpace the larger property in resale value-which would be unrealistic. If you apply the rules of compound interest, this concept falls flat on its face, just like the myth that high demand communities enjoy an accelerated appreciation rate.
You would have a difficult time locating a scenario where a smaller property had a higher resale value than a larger property in the same area. If you’re contemplating the purchase of a larger home surrounded by smaller neighboring homes, your decision should be based on whether the home suits your needs, objectives, and is priced correctly relative to the smaller homes. If you have the opportunity to pick up the property at a bargain price for not much more than a smaller home, it may be a great deal. But if the market price is unreasonably high, you might want to keep looking.
As you view Tustin real estate and homes for sale, don’t automatically reject the largest or most expensive properties in a community. Take the time to do a value comparison. You could pick up a home with good value.
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.
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 Tustin 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
If you need a competent agent to help you view Tustin real estate and homes for sale but you’re confused which Tustin Realtors and real estate agents are qualified to help you, give me a call today!
Comments on this entry are closed.