This luxury home is the most expensive in the neighborhood - Buy it?, it’s perfect but should I really buy it? The answer – It depends.
When homes in an area are appreciating rapidly, it may be a good idea to buy as much as you can afford. The more you invest, the more you'll get back when you sell, assuming the market remains strong and there in lies the rub.
“Buying the most expensive home you can afford, does it makes economic sense?”
Let’s assume you found the perfect home and it was exactly what you wanted. It contained all the must have, should have, and nice to have features that was on your list that would make up your perfect home. The back yard pebble tech pool with its water fall and bubbling broke that run through the gardens, the BBQ area, half court, and all the other backyard features are a dream come true. The incredible kitchen with its custom cabinets, rich granite tops, and Wolf appliances were pure eye candy yet the functionality of the layout would make any professional cook euphoric. Well you get the point. As luxury homes go this had every item on your list and in your mind it’s a must buy.
Before you start signing documents, take a look at the sales prices of comparable homes, “comps”, in the neighborhood. If you compare the comp prices to the masterpiece home, it’s possible you will notice a significant price difference. This significant change in price should raise yellow flags and any ones flagpole. The masterpiece is obviously selling in a price range far higher than the comps. Why is this home over priced compared these other homes?
When working in the luxury home market not all homes are created equal. The square footage might be the same and it may have the same number of garages and they all might have a pool. Does that make them equal? The simple answer is no.
The details that made the value of this home more than the rest with the same square footage could be contributed by ... read more at Scottsdale Real Estate