8 essential tips for buying a luxury home
If you're thinking of buying a luxury home, then you're just not looking to buy an "expensive home."
You are looking for a safe, comfortable and accessible home, which guarantees a high-end lifestyle in an exclusive area.
A luxury home has stunning architecture, attractive landscaping, and state-of-the-art finishes and appliances.
It is the type of home that provides you with ample space for your family and your vehicles. It is the direct way to a wonderful living environment for a long time.
So it's understandable that you want to walk cautiously when considering buying a luxury home. It is imperative that the investment is adequate so that you and your family can build a secure and stable future.
Here are some of the best recommendations that exist, to ensure complete peace of mind during the process of buying a luxury property.
Choose the right real estate agent
This first step is essential: you need to partner with the right real estate agent, but… what does the right real estate agent look like?
Very easy:
- The right real estate agent for you is experienced and shows excellent results in the real estate market. A successful real estate agent is one who knows the ins and outs of this unique industry and proves it through the testimonials of satisfied clients in the real estate market.
- The right real estate agent not only knows the properties, but also knows the area and the property in which YOU are interested. It gives you options and lets you know what other similar properties are for sale in the same area. It can also inform you of how long those properties have been on the market, price adjustments and, ultimately, any information you consider important! Many times, the realtor will have pocket listings, properties that are for sale but are not publicly advertised. When you think you've seen it all, this agent will show you even more properties.
- The right real estate agent for you has a website that clearly indicates your specialty.
- The right real estate agent for you has a team of professionals who offer knowledge beyond online listings. It points you in the right direction taking into account all the requirements that you contemplate.
- The right real estate agent for you will keep your confidentiality. Any information you need to know will be to help you in the right way. It gives you professional advice so that you can make a decision that you are completely satisfied with. The agent's mission is to save you time and money throughout the entire process!
Master all financial considerations
The figures involved in the acquisition of a luxury home are very significant. This is why you want to make sure you cover all the bases when it comes to all the financial issues associated with the operation.
It is normal that some sellers want to know an indication of their financial situation in order to make the process more agile and efficient: prior approval from the bank, a letter of reference from their portfolio manager, etc.
When it's time to make the offer, it's common for many sellers to want you to verify available funds and request a bank statement. Here are some tips for this:
Keep the statement up to date and display the details of the financial institution and its name. On the other hand, try to hide your current address and account number in the copy you provide.
Some buyers consider between taking out a home loan or simply paying it all down. While in some circumstances the best decision is to choose a home loan, buying in cash is often the preferred option for most.
Research the tax laws of the region in which you are acquiring your new property, especially if you are crossing borders to buy a house in Miami. This will avoid surprises in the future.
Surround yourself with an experienced and reliable team: a good real estate agent, a financial advisor, an accountant, a lawyer… who complement each other to help you reach the final goal. The right team is the one that makes sure that all your paperwork is in order.
Know what you are looking for from the beginning
Working with a team of professionals can make your transition to your new luxury home smoother and more seamless. Still, the choice is completely yours.
The home should be the one that you consider best for you and your family.
Before you get to the dilemma where you like two potential properties and aren't sure which one is right for you: define your tastes and lifestyle beforehand.
Some questions that can help you make the decision are these:
- What property is the best for my family and for me?
- Which one gives me the quality of life that I deserve?
- Which one best suits my tastes and those of my family?
Take your time
Clearly, buying a luxury home should be a thoughtful decision. An investment of this magnitude should never be taken lightly!
The reality is that we don't buy things with money. We buy things with the hours of our lives.
Nobody wants to close a multi-million dollar deal only to immediately regret it. You also don't want to rush through the process only to face a level of disappointment at the end.
You must be a buyer who understands the differences between the high-end real estate market and the lower levels of housing.
For example, in the range of luxury houses the competition is much lower. They are exclusive homes, so the number of offers is much lower. This can work to your advantage as you can take your time and negotiate the best deal.
When considering buying a luxury home, it is essential that you do your research on the property you are interested in purchasing.
A picture is worth a thousand words
While the photos and videos you see on the website will reflect all the brilliance and elegance of each property, it is truly important to feel the luxury home by visiting it in person.
Go yourself, and go more than once. At different times of the day if possible. Even when buying a luxury home abroad, it is beneficial to stay at a nearby hotel to truly understand how you feel around the property you are thinking of buying.
Get familiar with the area
When you are in the middle of the process of investing in a luxury home, it is also essential to consider the area in which that property is located.
The value of your investment is intrinsically tied to the well-being of the location, so you need to get as much information about the surroundings as possible.
Do proper market research on nearby activity. Get a comparable analysis of similarly priced homes that offer similar features. Your real estate agent can help you with this.
You just need to ask him about the future of the area. Make sure there are no new developments or skyscrapers scheduled for the area, as this could block the view in the future. Leave no room for doubt and you will be glad you were cautious.
Get a thorough inspection of your luxury property
Luxury homes play in an exclusive league when it comes to high-end appliances, new technologies, and advanced home security systems.
You will need home inspectors who are aware of high-end home features, as an average home inspector is probably not qualified for this.
The property inspection will also give you insights into recommended maintenance and updates for your future luxury home.
Pay attention to the resale value of the luxury home
While it is appropriate to choose according to your preferences, it is also crucial to have the home ready for resale at some point in the future.
For example, you may choose a home decorated with oriental ornamentation or cutting edge architectural features that are exactly the finishes you are looking for ... but this may not appeal to all potential future buyers of your luxury home.
Just be aware of the impact of some of these features when it comes to reselling in the future. Reflect on what your home may be worth to the next potential buyer, even if it happens within a generation.
Even a fractional cut in the future sales price can be significant in this price range.
In the end, all of the above boils down to a simple rule that can be applied to all areas of real estate: you should avoid buying the biggest and best house in the neighborhood, as this will invariably lead to a lower return on your investment. Leave room for growth and improvement!