When is it smart to buy the biggest house in the neighborhood?
I toured a house today that is probably the nicest in the neighborhood. It's completely updated, large master suite added over the garage, move-in ready. Asking $180K, 3500 sf.
The rest of the neighborhood is same vintage (late 70s/early 80s) and all the comps this year have been 1500-1900 sf and sold for $93-108K. 2 houses currently on the market in the neighborhood for $120-130K. I don't know the condition of the houses that sold, but the 2 on the market are moderately updated.
Comps sold for $63-75/sf. This one is listed for $50/sf.
This is the cheapest listing with 3000+ sf. The other options for this much size are newer and 220-250K (in the $60s/sf)
So when is it NOT a bad idea to buy the biggest/nicest house in the neighborhood? I understand that when you go to resell you'll get less, but if that's true on the buy, does that negate the advice? How much cheaper does the "biggest house" need to be to make it a smart thing to do?