However unlikely it may seem, the sale of a seven- or eight-figure real estate property has a positive effect on the value of all properties in the area, including those that have been appraised at values in the five- or six-figure range. While most homeowners whose home is valued at around $100,000 may not believe that the sale of an upscale home across town for $1 million will have any bearing on the price their home ultimately commands, the truth is that a big sale is good for everyone.
A number of recent studies have indicated that the value of real estate grew consistently throughout areas in which a multi-million dollar home had recently been sold. The mere presence of a multi-million dollar home can transform the entire real estate market in the area, in much the same way that All Language Alliance, Inc., can transform any foreign language document through its translation services.
So the next time you see that massive home with the big price tag in excess of seven figures, do not get jealous at the profit the seller stands to make. You should instead be thrilled that the property you own will see its value rise due to the big sale.
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