After months of house-hunting, you finally found it—your dream house. It’s tailored-made for your family’s lifestyle—immaculate gardens, flawless architecture, ideal size, perfect orientation, and the number of bedrooms. Oh, and the heated pool comes with a kiddie pool.

But there’s a catch. This embodiment of perfection is the nicest home in the neighborhood. For years, realtors have vilified buying the fanciest home in the neighborhood, terming it a bad investment.

So, do you commit to the sale, or do you pull the plug? Let’s explore this dilemma.

Should You Buy the Fanciest House on the Block?

Well, it depends on your homeowning goals. See, a home means different things to different buyers. Some people prioritize financial considerations when buying a home, while others gravitate towards other considerations. For instance, you may want a home that complements your lifestyle and family needs, or that’s conveniently located to your work or children’s school.

Traditionally, realtors dissuaded prospects from buying the best homes in a neighborhood from a financial perspective. The value of such a home may appreciate much slower than other homes in the neighborhood, resulting in a dismal return on investment (ROI).

Still, if the home’s value doesn’t match the neighborhood’s, you may struggle to find a buyer when it’s time to sell. People who can afford such a home may prefer to move to a locale where such homes are commonplace.

When to Buy the Most Expensive Home on the Neighborhood

You may disregard conventional real estate wisdom and snag the best home in a neighborhood if:

• It complements your lifestyle: Snag that posh house if it meets your family’s housing needs, and you plan on putting down roots in the community. If it checks all the boxes, you can enjoy your new home for years with expensive modifications or upgrades.
• It’s in the best school district: Buying a pricy home in a top-rated school district pays off in droves. It ensures your kids get a quality education and grow up in a nice neighborhood while protecting your investments. A high demand for homes in such districts ensures property value stability, resulting in higher resale values.
• You can afford it: If your finances are up to the task, you can buy a pricey home if it lets you move into your dream neighborhood. It may be next to your favorite golf course, shopping mall, work, or even your loved ones.

When Not to Buy the Best Home on the Block

Consider giving the best home a hard pass if you:

• Wish to increase property value quickly: Since your property is already a cut above the rest, its value will grow slowly. Unlike the worst home in the locality, the most expensive home is unlikely to need repairs that can immediately boost its value. You’re at the mercy of the market, and there’s little you can do to boost your property value.
• Have the wanderlust: Buying the most expensive home in a neighborhood can prove tricky if your career involves frequent relocations or transfers. Military personnel, corporate executives, and sales representatives tend to move around a lot. They may face challenges when looking to offload a topline home when short on time.
• The neighborhood is on the decline: You may not enjoy living in your new expensive house if the neighborhood is losing its shine. You may also have a hard time recouping your investment when it’s time to sell.

Buying the best home in the neighborhood is all about balance. Beyond the price, consider if the home matches your housing needs and complements your lifestyle. Considering your long-term plans can also help you make an informed choice when making the purchase.

Need credible help when buying your dream home? Contact us today!