I tend to disagree with the previous responses. I wouldn't say it's necessarily a bad idea to buy a home that has improvements and updates that exceed the homes in the neighborhood; however, you do want your real estate agent perform a market analysis of that home to make sure that it will appraise when compared to homes with similar square footage, condition, updates, etc.
The other question you need to ask yourself is "is this my now and forever more home?" If it is, and you negotiate a fair price based on similar sold properties (with the help of your agent, of course), and you love it...then no, it is not a bad idea to buy it and enjoy it!!
If you see this home as a "stepping stone" to your next home, and only plan on staying there for 3-5 years, then it may be a more risky purchase because we can't really predict what will happen with the value of this home or other homes in this neighborhood down the road.
Long answer to a short question...it's really best to meet with a real estate agent to talk specifics and come up with a game plan. I'd love to be able to help...you can contact me by clicking on the blue "contact" link below by name to the right!
Kris Plechaty @ First Weber Group Realtors
Typically you want to be careful about the most expensive home in the area. There are many factors to a buying decision like this. Sometimes homeowners over improve for the area, but sometimes it just is a really nice and/or really big home. The help of a experienced RealtorÂ® can help you with the fact finding, negotiating and purchase. Working together you can purchase any home with confidence. I hope this is helpful, but call or email for I would welcome an opportunity to talk with you regarding your home search needs and wishes.
The short answer is that you'd rather buy the smallest home on the block as the larger homes will keep your value up and higher than usual. The biggest challenge lately with buying the biggest/best home on the block is getting it to appraise out when you get to that point. If you do plan to pursue this home or any home definitely have a market analysis prepared by your agent so you know what the home should be worth in this market and also to make sure there are enough comparable properties to that you don't run into appraisal problems.
Total Realty LLC