Luxury vs. practical homes: What’s really worth the price?

What's worth the price when buying a home?

Buying a home in metro Atlanta is a huge decision, and then you?ve got to decide whether to go for that fancy, luxury pad or something a bit more practical. FOX 5 real estate expert John Adams has some advice to viewers looking to buy.

ATLANTA - Buying a home in metro Atlanta can be a lot. You’ve got 29 counties, almost 7 million residents, and more neighborhoods than you can count. It's a huge decision, and then you’ve got to decide whether to go for that fancy, luxury pad or something a bit more practical.

Here to help you decide FOX 5 real estate expert John Adams.

Adams says it's not just about what you can afford upfront; it's about what makes sense for your wallet, your life, and your future. So, let's break it down.

How much should you splurge on upgrades?

You walk into a model home, and boom – granite counters, Viking appliances, and a bathroom that looks like a five-star spa. Builders love to show off these "upgrades" because they sound impressive and make the price tag go up. But here’s the kicker: most of these high-end finishes don't actually give you dollar-for-dollar back when you sell. 

For most of us, being smart with upgrades means thinking about what truly helps the house function better, lasts longer, and generally appeals to more people down the road. Think about things that save you money, like better insulation or a super-efficient AC system – those are always winners. Durable floors, practical storage, and a well-laid-out laundry room – these are the upgrades that make daily life smoother and hold their value. 

A good rule of thumb is to keep your upgrade spending to about 5-10% of the home's basic price, focusing on the things that truly matter and have wide appeal. 

Why location trumps fancy features every single time

This one's classic, but it's true for a reason: "location, location, location." This is especially true in a diverse place like Atlanta, where neighborhoods can feel like different worlds, and where your house sits is way more important than how many designer tiles are in the bathroom.

A perfectly fine house in an amazing spot will almost always grow in value more reliably than a sprawling, decked-out mansion in a less-than-ideal area.

What makes an "amazing spot" in metro Atlanta? 

Think top-notch schools, being close to major job centers (like downtown, Midtown, or Perimeter), or walkable areas buzzing with shops and restaurants (like Decatur Square, Ponce City Market, or Avalon). Easy access to the area's highways or MARTA is also a huge plus. 

These things create demand, keep property values stable, and make it easier to sell when the time comes. You can always change the paint color or add a new kitchen island, but you can’t pick up your house and move it. Even if more people are working from home these days, we still want to be part of a community and have convenient access to everything.

The sneaky costs of owning a luxury home

Okay, so you bought your dream luxury home. Congrats! But hold on, the price you paid is just the beginning. 

First off, property taxes. A bigger, fancier house means a higher value, which means a bigger tax bill. We're talking thousands of dollars more each year than a more modest home. Then there's insurance. Luxury homes cost more to replace, so guess what? Your insurance premiums are going to be higher.

And don’t forget maintenance and utilities. More square footage means way higher bills for heating and cooling. That beautiful, sprawling yard needs professional landscaping, which ain’t cheap. And all those high-tech gadgets and fancy appliances? They're great when they work, but they're expensive to fix or replace. 

The list goes on and on!

The bottom line

So, when you're weighing your options in the vibrant metro Atlanta market, it really boils down to being smart. 

Ultimately, the smartest move for long-term financial health and enjoyment, often known as the Principle of Progression, is this: always try to buy the least expensive home in the most expensive neighborhood you can comfortably afford. This strategy allows your property to benefit from the higher values of the surrounding homes, boosting its appreciation potential and making it a truly wise investment for your future.