Expert: Jessica Bryan - 11/6/2007

Question
I am planning to buy a 3 bedroom house in one of the city's most prestigious areas.  In the community I like, however, only 10% of the houses are 3-bedroom, others are either 4-bedroom (80%) or 5-bedroom (10%). I was told not to buy a big house in communities where most of the houses are small, so am wondering if the flip side of it is also a concern.  Thanks!

Answer
Hello;
I agree that there should be a cause for concern when buying in a community of larger homes.  The problem you run into is that most of the homes are probably appealing to families and if this is the case they will overlook your home.  You won't have the kind of showing strength when you go to sell that the other homes have.  It is true that one should not buy the most expensive or the largest home in community.  If it is a highly sought after community for reasons other than family, then perhaps it will be okay to have the smallest (or least expensive home) in the community.  Let me use an example: let's say you had a small home in Malibu California.  All the other homes were very large and expensive but this home was more affordable. Someone who was eager to have the prestigious address would be attracted to your home for nothing more than the location.  If however, you owned a home in an area where the image was to have large homes and yours was small, the location might not carry the same weight if there were lots of homes on the market that met the buyer's expectations and needs.  

The best advice I can give is for you to talk to a real estate agent familiar with this particular community and find out what the public perception is of the community and perhaps even the demographic breakdown. (You can go on census websites and check that too.)  Get a professional opinion or opinions before you buy.
Best wishes,
Jessica Bryan