Toby from Global Integrity Finance explains why buying the biggest house on a block is a mistake. Oversized homes sit on the market 300-400 days because they're overbuilt for the neighborhood and hard to value. Stick to normal size and price ranges for your area instead.
Hey everybody, this is Toby at Global Integrity Finance. Hey, I want to reach out to you real quick because we're seeing a lot of these questions happen. The biggest house on the block issue. That is a big, big no-no. In real estate 101, I mean pre-real estate 101, everybody knows you don't want to buy the biggest house on the block. People say, "But why?" Because nobody wants to own the biggest house on the block. When the economy tanks, it's the hardest house to sell. It's overbuilt for the area, and it happens all the time, but doesn't mean you need to get caught into that. When you have the biggest house on the block, 99% of the time we have to go into other subdivisions, other neighborhoods to get comps, which means that valuation is not true for that neighborhood. Stay away from the houses that are the biggest on the block, and we're not talking so much square footage, we're talking more about price. When somebody's gone in there and we tell our rehabbers, do not over rehab the house. Do not overbuild. Oh, but I'm gonna put in this Italian marble here. It's gonna look great. The problem is your cost is too high for that neighborhood. We have seen a multitude of clients go into an amazing neighborhood here in Dallas, downtown Dallas on the M Streets, and even overbuild there, and they sit on that house 300, 350, 400 400 days having to dump that thing and lose money. The houses are beautiful, don't get me wrong. The problem is that the majority demographics of your buyers are not looking for that house. They're looking for what's normal. Stay normal, stay simple, stay in the majority of what the clients, buyers, are looking for. Give me a call, 214-548-5190. Talk to you soon.
