Every prospective homeowner would like to buy the best property in the area of their choice at the lowest price. That's the ideal situation, but in most cases, it's not easy to do. Usually, buyers have three property choices in an area -- the sharpest, mid-range or "bottom of the line." So, which one would you buy and why?
Obviously, the sharpest property usually carries the highest price tag. But, buyers don't have to purchase the best-looking property in order to generate maximum appreciation as well as a place to live. In fact, many times the best approach is to stay away from the sharpest properties. Although these homes have an excellent appearance, percentage-wise they may not appreciate as much as a mid-or-lower priced home.
At the same time, stay away from the rock-bottom priced properties. These homes are usually priced lower for a reason, and the cause of the low price may not be readily remedied. For example, a corner property, one on a busy street, or a property with a shorter driveway is worth less because of the inconvenience. Buying one of these properties takes less capital, but it appreciates less. In the long run, it will not be as strong an investment as a home that does not have these drawbacks.
Instead, look for a property in the mid-range. Pick a home in the community that is between the top and bottom of the line. A buyer who stays in the mid-range will find that the property will appreciate, from a percentage standpoint, just as much -- if not more -- than the higher-priced properties.
Whether you prefer the top, middle or bottom of the line, the key is to carefully investigate an area, tract, or development before you buy. Travel down the streets, measure the traffic, examine the property, scrutinize nearby homes, maintenance, talk to the neighbors, ask questions of the local real estate agent. Oftentimes they can provide you with valuable insight. Look at the surrounding communities. How do they appear? Communities that are adjacent to each other will impact each other.
Certainly it takes time, but remember your home is going to be the single largest financial investment you will ever make -- and you want that investment to be a wise one.
"Real Service in Real Estate." For a personal consultation on buying or selling real estate, Janis Peterson, GRI, Realtor® can be reached at (610) 642-3744, e-mail: jp4re@pahomes.com. Prudential Fox & Roach Realtors® is an independently owned and operated member of The Prudential Real Estate Affiliates, Inc.
