Would you buy an overpriced house???

Question

Would you buy a house that was overpriced for the neighborhood it was in, but was much nicer than anything in the neighborhood?

It is my house. We have added a goregous outdoor living space and redone absolutely everything about the place, however there are some pretty blah houses in the neighboorhood that are still 20-30k less than what we want to ask.

Answer 1

Yes, of course, inasmuch as I can afford it.

For, buying a house may be as irational as falling in love since we are all likely to spend a good deal of our life in a house we buy.

Answer 2

Real estate is a LOCAL market game so it depends on where your house is located. You have OVERBUILT for the neighborhood and in ANY type of market that is about the same as throwing money out the window so it was NOT a smart move.
Trying to sell an overbuilt house in THIS market (IF your market is declining like most areas) is even worse. You are going to have to find an idiot that falls in love with the house and forgets about the numbers but it is not that hard to do.
Watch all the tv shows about "staging" and see how simple it is to get people to pay thousands extra because of 500 bucks in paint and bedsheet curtains.
There are LOTS of people who overpay for houses and do not understand or take the time to realy learn how to "invest" in houses.
Most markets have falling house prices and houses are sitting on the market for long periods of time but you never know when the next "greater fool" will walk thru your door wanting to spend the last lottery winnings.
The ONLY way to find out is to call SEVERAL real estate agents in your area and have them come past and do a market appraisel on your house. Have them give you estimates of market costs, Days On Market, and selling avg. per sqft. Also shop around at several banks or lenders and see what finance terms you can get with your credit. Do NOT let each one pull a credit report on you but instead, pull your own and take a copy with you.

Answer 3

Now, not every home that is overpriced will ultimately sell for less than market value. But many homes that are listed at unrealistic prices are owned by sellers who are motivated and who are willing to listen to reasons why they should sell at a reduced price to you. If you find out that a seller has turned down multiple offers for less money, it might mean that it's just a matter of timing. Eventually the light bulb will go on and a seller will say yes. There are overpriced gems hiding among the inventory of homes for sale every day. Don't just pass them by. You could be passing up an opportunity to buy your dream home.

Answer 4

HELL NO. If your area is that bad that makes that only house "nicer than anything in the neighborhood" then you need to consider moving to a better area where the houses are nice, affordable for you & in a good neighborhood. Why would you want to struggle for an overpriced house?

Answer 5

Yeah sure if I could afford it and I didn't have to worry about my house being broken into every 5 minutes. But than again, nothing is ever guaranteed. Stuff can happen in the nicest of neighborhoods. Like where my sister used to live. One of the most elite neighborhood's in Florida...uh yeah there was a stabbing like 2 doors down in broad daylight. So I change my answer to probably not.

Answer 6

Sorry, but no. Given the particulars of the neighborhood where its located, housing market variants and the uncertainty of economic stability in the workforce, etc. There are a million reasons to say no. I wouldve considered the big picture before sinking alot of money into the house in the first place. Good luck, Peace

Answer 7

depends on how much nicer, and how much more. I have no qualms about living in a area that might be what people may consider "beneath" them if the house is really nice. I mean, would you want the best house in the neighborhood, or the worst, in a nicer area? If I was totally in love with the house I would pay more.

Answer 8

No. Just like with shopping for anything else you have to comparison shop. People who buy the first house they find or expect to live in over priced housing are going to regret it some day.
For some reason when you're in the house you really wanted a few months, it doesn't look as appealing as it did when you just had to have it. You find all of the little(and some big)idiosyncrasies that are not apparent during a walk thru.

Answer 9

No for several reasons. The lower priced houses in the neighborhood will (or could) eventually have an effect on future selling price of the house. Housing prices are dropping in most parts of the U.S. right now so there's no reason to overspend and it just does not make good financial sense to do so.

Answer 10

That is a toughy...I understand what you mean by overpriced..We are searching homes as well...and to be honest the homes we want are by two excellent schools. which one attends Jr high and the other will start in kindergarten..and to be honest we really want to be there...the prices jump all over though..and our real estate agent told us to hold off for awhile, homes are not selling as of now, and they are still at the high..people are willing to negotiate but it is still going to be too high to pay for...he says wait till spring that is when we are going to have the advantage and take homes for a steal...and there will be soooo many to chose from..for some reason these tricky loans people have gotten are going to be losing homes left and right...so sad....but they signed that dotted line on these loans, which in my mind was their problem, so I can't feel too bad for them...so in my opinion don't buy a home that is overpriced...the market is going to go down and you will lose...sometime in the future they might go up again...but do you want to take that chance in this market right now?

Answer 11

I wouldn't. I would buy an underpriced house in a really nice neighborhood and make some changes to it so it compares to the higher priced ones. Come time to sell I will take the money and run.