Good Morning Melissa,
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