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DON'T buy the BIG house!

If you are looking to make an investment in real estate with hopes of value appreciation DONT ever buy the largest or most expensive house in the neighborhood. In real estate this is known as the principal of regression. Over time in a neighborhood typically values head toward a median.... the smaller homes often attain this highest price per square foot and typically the largest homes are stuck at a low price per square foot. People tend to buy into the neighborhood not for a particular house or floor plan but for larger aspects; the general feel of the neighborhood, the population demographics, the view, the location, the school district ect...

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