Thanks for the reply. I can't tell you what to do, but a 10% discrepancy that's based on objective facts, lot and house size, shouldn't stand in your way if you love it and your thinking is long term. Discuss all the pros & cons with your agent and any other decision makers involved with your purchase. If you decide to move forward, use this issue to make a lower offer and see if you can't reduce the discrepancy some in your favor.
2) How long do you plan on living there?
3) Do you love it?
4) Will the home appraise out?
If minimal options and you stay for a long time and you love it and it appraises out, then it may be a good option for your family.
The second problem --- Since you own the most expensive house in the neighborhood, your appreciation potential is already limited. This becomes a bigger problem if you want to remodel or add on to the home.
VERY IMPORTANT---If the money are not the problem and you love the house so much you should go for it without to think twice!!!!!!
Just My opinion!!!
While it's true, you're better off owning the least expensive home in a better neighborhood than the most, like all axioms it's not absolute. I wouldn't build a home that is out of character with the neighborhood, like a $2,000,000 home in a $350k-$500k, unless my lot there had an incredible view, waterfront or some other distinguishing characteristic.
In buying a resale some of the valuation considerations may have already been factored in. If you've looked at the rest of the market for homes in the price range and you are attracted to one that is at the upper end of the neighborhood, there must be a reason you like it. Resale issues aside, unless the home has severe limitations I would move on the house you like.
Your agent will be in a better position than any of us to advise you on the pro's & con's for this specific home and area. Buy the home you love, your investing more than just money.
But, you have no guarantee, that when you go to sell, that your home will remain the most expensive home in the subdivision. Someone will put on an addition... some huge family room off the back... maybe they'll add a pool, and a three-car garage. Maybe they'll trip out the kitchen with Wolf, Sub-Zero and Carerra Marble. You just never know.
If the house is the one you like, you can afford it, and you go into the purchase with your eyes open, regarding resale... I say "yes, it's okay".
(you officially have my permission to purchase!)
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