The Law of Diminishing Returns Applies To Home Buying Too!
That home you're looking at is SWEEEEET! EVERYTHING you wanted and more! Yep, bells, whistles, the WHOLE SHEBANG!!! But it should come with a warning label: THIS HOUSE IS NOT LIKE THE OTHERS!
We watched a movie recently and (excuse the language) one of the best lines was "Real estate is a fickle bitch!". We broke out laughing because we know it's true! Home values go up, they go down, sometimes without much apparent justification. A dollar spent is usually not a dollar returned, and never is that more true than when you own one of the biggest, most tricked out homes in your community!
When it comes to subdivisions and home values, what seems to work best is uniformity within an allowable range of variation. You'll see builders plan accordingly, either making the entire subdivision close to a certain price point, or taking a larger community and splitting it into various price point sections. The segregation creates micromarkets that support each section's home values.
On the other hand, when a builder has a fairly uniform community and then someone builds 50% or more over the rest of the neighborhood, they're just asking for trouble when it's time for resale. Sure, they got bragging rights (and everyone expecting them to give out FULL SIZE and not fun size candy bars at Halloween), but the reality is those home owners would have been better served by buying into a community with similar home values.
The reality is all those "lesser" homes act as an anchor to the super-improved home's value. So when you're shopping for a home, flash back to the old Captain Kangaroo game "which one of these is not like the others?". If the house you're considering is that ONE, it may be time to think a bit harder before proceeding.
Other questions about buying or selling a Warren County area home? Just ask! Call 513-520-5305 or email Liz@LizSpear.com!
Liz and Bill aka BLiz
REALTORS(S) Serving Warren County Ohio & Adjacent Areas
The Liz Spear Team of RE/MAX Elite
Elizabeth & William Spear
Ask for us by name if you visit the office!
Two locations: Lebanon & Mason, OH
Liz direct: 513-265-3004
Bill direct: 513-520-5305
Our Website: www.LizTour.com
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