NewburyportNews.com, Newburyport, MA

Real Estate News

June 6, 2012

Buying — or Building — The Best House on the Block

(Continued)

Syndicated —

Look at Comps

In today's market, potential buyers - having weathered the real estate bust and the recession - should take one look at the biggest, best house on the block and say to themselves: "No way."

From an investment standpoint, owning the biggest house on the block has never been a good strategy. Home values in a neighborhood are intertwined because comps are so important in determining how to price - and what to pay for - a home. So the value of your McMansion will be limited if it's surrounded by homes of considerably lesser value.

For similar reasons, you should avoid buying a house on a block with a parking garage, one full of apartment buildings,or rented homes. It is thought that renters don't care for the properties where they live, as are absentee property owners. Their indifference can only hurt the value of nearby homes.

Buy the worst house on the block best instead

A better strategy, no matter what kind of market, is to buy the worst house on the best block. You can always improve the property and therefore increase its value. And because it's on a great block, improvements you make to the home will be practically guaranteed to give you a top return on your investment.

Just don't get carried away and turn the worst house on the block into the biggest and most expensive one.

Related:

Brendon DeSimone is a Realtor® and real estate expert based in San Francisco and New York. He is a contributor to Zillow Blog, has collaborated on multiple real estate books and is often quoted by major media outlets. Follow Brendon on Twitter.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

Text Only | Photo Reprints
Real Estate News

Offbeat
NDN Video
Crews rescue elderly woman trapped inside flooded minivan Taylor Swift Reveals New Album 1989 is Full-On Pop Serious Flash Flooding in Arizona Man Poses for New Mugshot Photo Wearing Shirt with Old Mugshot Photo On It Disquieting times for Malaysia's 'fish listeners' Caught On Camera: Johnny Manziel Obscene Gesture Rita Ora Embraces the Ice Bucket Challenge Bird surprises soccer player Ashley Young during game Chapter Two: Never too late to become an artist Ice Bucket Challenge Goes Viral, Raises Over $15M For ALS Damaging Winds Stop the Show! In the Cockpit of the Air Force's Elite Squadron Pathologist: Autopsy Shows Teen Repeatedly Shot Christina Aguilera Has a Baby Girl Marvel Fans: Watch Dancing Baby Groot Over and Over! Raw: Protesters, Police Clash in Ferguson Gov. Rick Perry responds to indictment Breaking: Officials release name of police officer in Ferguson shooting Man Shot As Protesters Defy Curfew in Ferguson Justin Bieber & Selena Gomez Back Together for Two ‘Secret’ Dates
Special Features
NRA Waterfront Plans