Location, Location, Location!
It is generally considered good wisdom to buy the worst house in a highly-valued neighborhood.
BUT if you drill down a little further, not all low-priced properties in a good neighborhood have good value. If the house lies on a busy street or has some other factor that makes the location undesirable; it should come with a warning label. In fact, it probably does in the guise of disclosure forms! If you want the value of the neighborhood to lift up the value of a property; choose wisely. The busy street and the accident prone corner are going to drag the property down.
About nine years ago, someone wanted to buy this house which came on the market about $400,000 below other houses. The price would make an otherwise unaffordable neighborhood affordable! The only problem was that this particular house sat on the corner of an extremely busy street with heavy cross town traffic. The cross street was busy too and there was a traffic-light on the corner. The house was cute, it was in a great neighborhood and it was real affordable. Was it a good deal?
Here’s a photo of the house taken yesterday with police officers all around and an automobile slammed into the side of the house, airbag deployed. This is not the first time that a car has hit this house, I can recall at least four other such crashes. The fencing disappeared after a previous accident, probably too costly to replace. One can hope that the driver had insurance. One can imagine how high the home insurance would be on a house that keeps getting hit. I’d say this home is not a good value even priced vastly lower than the rest of the neighborhood, particularly for anyone in this side room which seems to have a bulls-eye on it. Someone inside could end up hurt or dead.
The neighborhood is surrounded by parks, golf courses and a lagoon and carries a high price tag, but it doesn’t mean that every house in the neighborhood benefits value-wise from the desirability of theneighborhood unless the location “within the location” is decent.
If you want to know what makes one street better than another street and why the homes on one side of the street are more expensive than the other, ask a local Realtor®. They are the experts and can help navigate the micro world of neighborhood values.
Purchasing the worst house in a high-value neighborhood can be a great move but make sure that you drill down and make sure that it is the worst house is because of the "condition" not the "location". You can change the condition but you can't move the house. The wrong location can turn a move into a dream neighborhood "location location location" into an expensive need for "relocation relocation relocation"!