Home Buying in 60645>Question Details

chitown_girl, Home Buyer in Naperville, IL

Is it OK to buy one of the most expensive house in a sub-division in Naperville (entire sub has about 100 houses only)?

Asked by chitown_girl, Naperville, IL Fri Sep 20, 2013

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Chitown,
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.
0 votes Thank Flag Link Fri Sep 20, 2013
1) Are there other options out there for you?
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.
0 votes Thank Flag Link Fri Sep 20, 2013
The first problem is the appreciation of the value of the home. The appreciation on the best home in a neighborhood is always going to be dragged down by the homes around it.

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!!!
0 votes Thank Flag Link Fri Sep 20, 2013
If you love this house, haven't found anything else that you like as much and you don't intend to move for a long time, then go ahead and get what you want. This will be your HOME, not a piece of paper that shows what the market value is. Plus, if it's in a more desirable location and has more square footage, it IS worth more than the others. Don't overthink this. Be happy in your new home.
0 votes Thank Flag Link Fri Sep 20, 2013
There is a saying:

You never want to be the prettiest girl on the block
0 votes Thank Flag Link Fri Sep 20, 2013
If the price difference is small (1-2%) then there is probably no harm but as a general rule you don't want to be the most expensive home in the neighborhood as the others bring your home's value down.
0 votes Thank Flag Link Fri Sep 20, 2013
If you do not mind it being worth what the neighboring houses are worth, it is fine. Your neighbors are setting home values. Comps trump everything in valuing home. If you want the prestige of the best house of 100, then it is worth it to you, but not a future buyer.
0 votes Thank Flag Link Fri Sep 20, 2013
Chitown,
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.
0 votes Thank Flag Link Fri Sep 20, 2013
Thanks to all for your feedback. The sub-division is about 5 yrs old and the current comps show houses that are about 10% less than this house but for obvious reasons like square footage, exterior house structure etc. The lane backs to a forest preserve so that house commands a slight premium. I would love to know current market value of neighbors but none of them have sold and their purchase price in 2006 is at the market peak so not much help.

Like you said - we love the house and dont intend to sell this one for a long time. Plus, we have not been able to find anything else we like purely on account of the sq ft.. Tough decision!!
Flag Fri Sep 20, 2013
The single-most expensive home in a subdivision or on a street or development carries some baggage of its own with it. It can be difficult to sell when you decide you're ready to move on... a much smaller percentage of the buyer's pool is willing to purchase the most expensive home.

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!)
0 votes Thank Flag Link Fri Sep 20, 2013
Alan May, Real Estate Pro in 60201
MVP'08
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If you truly love it and it fits your needs go for it. Just keep in mind when you go to sell the smaller homes will tend to reduce it's value to some extent.
0 votes Thank Flag Link Fri Sep 20, 2013
If its the house you want and its worth it to you - then yes
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0 votes Thank Flag Link Fri Sep 20, 2013
I wouldn't do it ..but that's my opinion
0 votes Thank Flag Link Fri Sep 20, 2013
I think that decision has many things to consider. 1. Why 2. How long are you staying in the home 3. Is the house larger, the lot larger, is there a premium view, is there anything that makes it more desirable. 5. Is the value of the home worth the price???
Flag Fri Sep 20, 2013
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