Wouldn’t it be great if you could delegate the task of finding and financing your new luxury home to someone on your team other than yourself? It would be wonderful if you could create, then hand-off a list of must-haves such as hardwood floors, granite counter tops, stainless steel appliances, vaulted ceilings, large windows, an in-home gym, high-tech gadgets, a pool, and stellar views. There’s a ton of work involved in discovering the perfect high-end house you hope for, a home that your family can live in comfortably and securely, that you could potentially re-sell in the future to pocket a bit of profit when property values are on the rise. With an investment this big, important, and potentially long-lasting, you want to be in charge of the process, involved in each step along the way, and have the right team of people working with you for your success. Buying a luxury home isn’t as simple as surfing real estate websites. Here are some tips to make the process easier and more secure.
First and foremost, hire a real estate agent who specializes in luxury homes. An experienced real estate agent will know the ins and outs of locating and securing the perfect home for you. Your seasoned agent will know how to find the right kinds of houses for your consideration, not all of which are publically listed or easily accessible. Your agent will also understand the processes luxury homes must go through to before closing. You need a qualified specialist with a proven history of closing on luxury homes.
Competition can be fierce. Luxury homes are not as common on the market as the average family home. Because it is a specialty market, more people may be bidding on fewer properties. International buyers make up a large part of luxury homebuyers, and many bring cash bids to the table. Be prepared for multiple offers, counter-offers, and ongoing negotiations in homes of this caliber.
Pre-approval of your home loan is extremely significant when looking for luxury homes. A loan approval letter from your bank can go a long way in helping get your foot in the door of your dream home. Your best option is to work with a bank with which you have previous history. Even still, be prepared to answer personal questions and provide proof that you are, in fact, qualified to make such a grand purchase. Your credit history and financial records should be in good order, ready to present to potential lenders.
Although seeing professional photographs on the Internet of potential homes does pique interest, don’t rule out a property based on its images. Not every picture is worth a thousand words, and some fine homes aren’t necessarily photogenic. A home may check off each of the items on your must have list without being “picture-perfect”. Seeing is believing!
Location is important not only in knowing which neighborhood you prefer to call home due to schools, shopping, commute, etc., but also in what’s going on around that neighborhood, such as new construction. You don’t want to pay for million dollar views and then have a high-rise bank building go up practically in your back yard. Do research about what building plans and permits are going on around your dream house so the dream doesn’t turn into a nightmare after the deal is done.
Title insurance may be necessary with the purchase of your new home to cover any unforeseen or forgotten problems with the title on the home you’re purchasing. You may also want to consider a home warranty, particularly since luxury homes come with more high-tech toys. A home warranty can protect you for a specified about of time, usually a year, from the time your home is purchased. Home warranties cover items such as roofs, heating and cooling systems, pools, fountains, appliances, and more.
You aren’t about to settle for less than your heart’s desire, and you shouldn’t have to! You’ve climbed the rungs of the ladder to success and you deserve every creature comfort life has to offer. Trust your real estate agent to communicate effectively with you regarding your options for finding and funding your luxury dream home, and for protecting your investment properly.
Interested in learning more? Call us at 586-979-5475.