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Pros and cons of buying the most expensive house on the block

On Behalf of | Dec 2, 2019 | Residential Real Estate

Delaware house hunters may feel tempted to purchase the most expensive house in their favorite neighborhood. They do not necessarily want to do this in order to show off, but the most expensive house may be the house that they fall in love with. Before going through with the purchase, there are a few things they should understand.

There are several advantages that a homeowner could experience if they purchase the most expensive house in a neighborhood. This usually means they are getting the nicest home in the neighborhood, so they may not need to spend a lot on improvements. Another benefit is that if they decide to sell the home in the future, they may benefit from higher resale value. Of course, there is the other benefit of not feeling the need to constantly keep up with the neighbors.

Before purchasing the most expensive house in the neighborhood, a person should also look at the potential disadvantages. They may actually have trouble selling the home in the future. Depending on how long they spend in the home and other circumstances, they may end up selling the house for less than they paid for it. Property taxes could be problematic. These are assessed by calculating the value of the home and then multiplying it by the applicable tax rate. When a home is a lot more expensive than all the other homes in the neighborhood, those taxes could be quite high.

There will be pros and cons to buying the most expensive home in a neighborhood. Some buyers turn to an attorney before making a purchase. An attorney may be able to provide information about residential real estate and real estate agreements. The advice a professional provides may help a person identify potential pitfalls to purchasing any property they are interested in.