Why the Worst House on the Block may be your Best Bet
As you peruse online listings, check email from your Realtor or drive the streets of your favorite neighborhood, your eye is bound to be drawn to the visual gem of any neighborhood you are seeking; the creme de la creme, cream of the crop, top of the heap.
Curb appeal. Kitchen and bath upgrades. A finished basement. What’s not to love?
When it comes to the very best house on the block, my advice is to leave that particular cherry to be picked by another buyer; there are several reasons to bypass the best home in the neighborhood and invest elsewhere, and it’s good to familiarize yourself with this line of thinking before you begin your house hunt and fall in love-at-first-sight with a house that might not, after all, be the very best investment for you.
The house that helps the rest of the neighborhood to rise now, may seem like a drag when it’s time to sell.
When you fall in love with a beautiful house, it’s hard not to imagine how happy you’ll be pulling into the driveway of a house you can be proud of – maybe even the very nicest home on the block. Dinner parties, family game nights, cozy holidays… you can really see yourself living in this house. Now imagine further down the road when it’s time to sell your lovely home. Instead of a shooting star in a galaxy of celestial goodness, your home may just be pointing out the flaws next door, across the street and throughout the rest of the neighborhood. Neighborhood gentrification is a wonderful thing, but don’t buy the prettiest belle at the ball assuming the other girls will step up their routine; there is no guarantee things will go that way.
Savvy buyers seek room to build equity.
If the house is already maxed out (upgrades throughout, killer landscaping, energy efficient appliances/windows/etc.), you’ll probably pay top dollar to purchase the property. Long term, this doesn’t give you a chance to make good on your investment. If, on the other hand, you buy the ugliest house in the very best neighborhood you can afford – you really have something to gain. Chances are good the quality of the neighborhood will hold, and if you score a great deal on an ugly house in need of a little TLC, there will be nowhere to go but up.
Not everything on HGTV translates to reality for the rest of us – but the notion that buying a bit of an eyesore in a great neighborhood is a keen investment makes sense.
Call or drop me a line – I can help you find a diamond in the rough or a gem that’s move in ready, and part of my expertise includes helping you understand what kind of long term investment you are likely to be looking at.
The Meyers Group