Usually people are drawn to the biggest, most beautiful house on the block. However, bigger is usually not better when it comes to buying houses. The largest house only appeals to a very tiny audience and you really do not want to limit potential buyers if you ever want to re-sell. When pricing your home to sell, an appraisal will use the other homes in your area for comparison, so your home is only going to go up in value as much as the other houses around you. If you pay $500,000 for a home and your neighbors pay $250,000 to $300,000, your appreciation is going to be limited. Sometimes it is best to is buy the worst house on the blockbecause the worst house per square foot can be improved and sell for more of a profit than the biggest house.