Bigger is not always better
You've heard the saying that Bigger is Better, right?
According to a recent study by financial site, NerdWallet, that is not always true.
NerdWallet looked at data from realtor.com in the largest metro areas in America to see whether larger or smaller homes are appreciating the quickest.
And here’s what they found.
In 17 of the 20 areas studied, they found that the smallest 25% of homes appreciated the fastest when calculated as a percentage. The median annual growth rate for the smallest homes was 9% vs. 4% for the largest 25% of homes.
Some of this may be driven by people moving to the cities rather than suburbs. Homes in the city tend to be smaller than homes in the suburbs.
We've also noticed a trend in the suburbs. The average new construction home is smaller than it was ten years ago. People are ditching the McMansion in favor of homes that better fit their modern lifestyle.
Most people do not concern themselves with trends in real estate when they are buying a home. Most only think about what they need now.
And that's somewhat disturbing to me because the average person moves every seven years.
With the home being your largest investment, it’s important to consider what it may be worth five or ten years down the road.
You may think this is your forever home, but life has a way of messing with our best made plans.
Over the years, we found one other strategy in buying a smaller home that helps to maximize your return.
It’s a small detail that can make a big difference when it comes time to sell.
If you want to learn about this strategy, then give me a call at 615-519-0983.
Talk to you soon.
The Deal of the Day in Nashville is this smaller, Goodlettsville home that is move in ready and listed for less than $170,000.