The Boston real estate market is one of the oldest markets in the nation and with a wide variety of housing available and neighborhoods that range from multimillion dollar estates to economical fixer uppers, many Boston-based homebuyers need to stop and ask themselves this one essential question: In a buyer’s market, is the potential of a property more valuable than its location?
In Potential, Potential, Potential Rona Fischman examines this very issue. As many neighborhoods are up and coming in the greater Boston area, are buyers better off paying more for an established location and perhaps sacrificing home size, or is your dream home in a less than desirable location worth the risk?
Location, Price Point, and Sacrifices
In each instance many variables apply and as Fischman points out, you can generally tell what to expect from a property by examining what the developers have left behind. Case in point, the examples Fischman gives of a modest ranch home in Newton and a fixer upper in Somerville.
The modest ranch in Newton, an affluent Boston suburb, is surrounded by homes that have been developed and turned into multi-million dollar investments. Why was this house the one stone unturned? Digging deeper, the lot on which this house is situated was not quite big enough and would not permit a two family townhome (as the developer would want to build), in fact the lot permitted the modest type of home it already housed, revealing that the maximum possibilities, (and earning potential) for this home have already been reached – this also serves as a reminder to perform ample due diligence during the purchase process.
Potential, Maximize Your Dollar, Forfeit Curb Appeal?
In her second example Fischman discusses a home in Somerville, a suburb of Boston that is evolving into a desired area, for among other reasons, expected updates to public transportation. Many homes in this area are old, run down and need extensive work. Because of the foreseeable convenience of public transportation, new schools are being built and people are beginning to move into the area. Though the location is not yet comparable to Newton, Wellesley or any other established area, the potential is building, and is far from reaching its limit.
Ask Your Realtor
There are many questions buyers must ask themselves before buying their first home. Know yourself, know your bottom line, and most importantly, know a good realtor. For some, the risk of buying a home in a growing neighborhood is not worth the safety of living in an established locale. For others, a beautiful home in a slightly less affluent area is more desirable. A good realtor familiar with your market can help you and your family find the right balance and maximize your investment.
Keith Munsell 
