Buying a luxury home is a big investment for most families and a venture you should understand before you start looking for your dream home. While much of the purchasing process is the same as traditional real estate, we have a few tips for you before you start your luxury home buying journey.
Hire a Luxury Realtor
While you may start your search online on your own, once you are serious about purchasing, hiring a Realtor who specializes in the luxury market is crucial to your success. The right agent should have raving reviews from past clients and an easy-to-find track record.
Your ideal agent should know the area around the property you are interested in purchasing. They should also be able to provide you with information about other similar properties and be aware of pocket listings, which are properties for sale but not publicly listed.
Agents who work primarily with luxury properties often have an extensive network of peers and luxury home sellers to help you find the right property. They’ll also help you steer clear of properties that might be a bad investment.
Know what you want in your dream home
Before you sit down with your Realtor, map out what you are looking for when it comes to lifestyle, tastes, and even size of home. Once you narrow down your list, your Realtor will be able to help you find the right home for your family.
Consider the following:
- What kind of floor plan do you find appealing?
- Are technological upgrades a must-have?
- Do you want a chef’s kitchen?
- What type of outdoor areas do you find appealing?
- Are you looking for a home with game rooms, theater rooms, and a home gym?
- What type of luxury upgrades do you want in the master bedroom and bath?
- Are you looking for spacious closet spaces?
- Do you want space perfect for entertaining?
It’s good to break your list down into “must-haves” and “nice-to-haves” and let your Realtor guide you toward the property that best suits your wants and needs.
Know the area
Location is everything when it comes to luxury real estate. Spend time in the area where you hope to buy a home and get a feel for the neighborhood and surrounding areas. Are there certain amenities nearby? Is there room for a future home building site that will block views, increase traffic, or decrease property value? Are there other luxury homes in the area?
Finding the right neighborhood is crucial for being happy with your investment. If you are looking for a neighborhood that has a lavish clubhouse, pool, or other amenities, you’ll want to put those items on your list. However, if you’d rather be close to ski resorts, you may need to look in a completely different area.
Take your time
When it comes to purchasing luxury real estate, be patient and wait for the right home to come along. Making a hasty decision on such a large purchase could mean you miss out on the home of your dreams or end up unhappy with the home you bought. With a purchase this large, you don’t want a bad case of buyer’s remorse.
Know your finances
Being pre-approved is even more important when you purchase luxury real estate. Work with your lender before you start shopping so you know what options are available to you. Some sellers will want to verify you are a serious buyer and a letter of reference from your portfolio manager as well as a pre-approval letter from the bank will go a long way.
Remember, just because you qualify for more doesn’t mean you should purchase a home for that amount. Even with a luxury home purchase, you’ll want to have plans in place in case a job changes or a situation occurs beyond your control.
It’s also a good idea to have a solid team on hand. Along with hiring an excellent Realtor, you may want to consider having a trusted financial advisor, an accountant, and possibly a lawyer well versed in tax and property law in your corner.
Think about resale value
You may think of your luxury home as your forever home, but as with any real estate investment, keeping an eye on resale value is important. You don’t want to overpay for a home you may want to sell in the future. Work with your agent to research the area and how other homes have increased in value over time.
The key to purchasing a luxury home is to have a top-notch team working together to help you find the perfect home. Having professionals by your side will help you make the best decisions and help you end up with the home of your dreams.