Investing in luxury real estate is often a highly coveted dream of many homeowners but is only attainable to very few people who can afford it. But despite its exclusivity, luxury real estate is continuously on the rise.
In fact, the sales of luxury homes increased by nearly 15% in 2021, even with the increase in prices by 20% from 2020. High-end buyers are not only looking for a home to live in but also a residential property that offers the best when it comes to aesthetics, amenities, and features.
If you’re one of these high-end buyers, you get to live your dream. However, purchasing such a luxurious property can be daunting, especially if you’ve never done it before. The search and buying process will require plenty of time, effort, and a hefty amount of money. But if you know how to navigate the purchase process and know the assessed value vs market value, you can find that beautiful oasis you’ve been longing for.
So, to make the most of the buying process, here are seven pro tips to remember when searching for and buying a luxury home.
1. Have a team of professionals by your side
First, it’s recommended that you hire trusted and professional real estate agents to help you through the search and buying process. Although generally, most people only hire one, you can employ as many real estate agents as you want so long as you haven’t signed an exclusive agreement with one realtor and are transparent with your agents.
When hiring realtors, pick the ones with a large network, which will be helpful during house hunting. Ultimately, the more people who help you search for your dream home, the easier and quicker the whole process will be for you.
2. Learn and understand your financial options
You’ll need to understand your financial options before you get to the buying process. Remember, the expected figures for a luxury property will be substantial. Normally, some high-end buyers buy luxury properties in cash. 30% of home purchases in 2021 were settled and bought in cash.
But if you’re more comfortable paying through a loan, it’s still possible. Just prepare your bank statement or pre-approved loan, as most luxury home sellers would ask for verification about your available funds.
If you’re paying through a loan but are unsure of the type of loan suitable for your financial situation, research the different types of mortgages. This way, you can compare the differences, weigh the pros and cons, and select the right loan.
Lastly, after you’ve reviewed your financial options, set a budget to ensure you don’t spend your entire income and savings. Just because you can afford a fancy home doesn’t mean you can pay other relative expenses.
3. Define your luxury home
A ‘luxury home’ can mean differently to everyone. For some, a luxury home means having a massive land space while for others, it means having extra amenities like a swimming pool, a huge balcony, and a patio.
To make the search more convenient, define what a luxury home is and relay it to your agents. That way, they’ll know what to look for.
4. Narrow down your location
The house’s location can significantly influence the property’s price. To narrow down your location, specify the kind of environment or neighborhood you’d like your future house to be in. Do you wish to live near the beach? Are you looking for a luxury house in the middle of the city? Perhaps you want a huge house in the countryside?
5. Start the search process
After deciding on the location you prefer, your real estate agent can start searching for a home at the upper end of the price range. When looking for a home, most buyers usually check out house listings online.
However, luxurious homes are often unlisted since some sellers want to remain anonymous and protect their privacy. But despite that, 67% of houses are even sold without being listed or sold to the public. So, to access high-end house listings or exclusive properties, ask your real estate agent to use their connections in luxury real estate.
6. View the homes in person
Though property photos are essential for marketing, you need to look past them. Some pictures may not tell you everything about the property. For example, a luxury house may appear bigger in pictures than in real life. So, after you’ve listed down potential houses you’re looking to buy, visit the places in person to have a clearer idea.
7. Negotiate when necessary
Even if the properties are luxurious, you shouldn’t take the first price offer. Like other houses for sale, you can still negotiate the price when necessary. Allow your agent to negotiate on your behalf to see if you can get a good deal.
Wrapping up
A property is a serious and expensive investment, more so when it’s a luxurious one. You can’t afford to make a quick and uninformed decision that could lead to regrets and a colossal waste of money. But if you follow the tips above, you’ll be able to choose and buy a gorgeous luxury home that you can afford, take pride in, and enjoy living in.
