Negotiation should be an important consideration when buying a luxury home. For high rollers, the sky may be the limit but value for hard-earned money still rules. Talk to your agent and strategize about what to offer, whether you plan to pay in cash, how to counteroffer, and so on.
true of luxury home sellers. When sellers of high-end homes don’t list their property, they’re willing to hold out and protect the privacy of a few chosen buyers vetted by their agents. For buyers, it means not settling for the grandest or most expensive home on the market. If your agent knows you, they will offer you the kind of homes that they think tick most, if not all, of your boxes.
Tap your agent’s network for exclusive luxury listings
If you can’t find a home on the open market, ask your agent to tap their network for unlisted homes for sale. This is the perk of working with a seasoned agent with an established industry network – they know where to look.
Always do a home inspection
You don’t want to buy a money pit. So order a professional home inspection. This process could take several hours for a standard home inspection and one to two days for a specialized luxury home inspection. It costs around $1,000 or double the price of a standard inspection. Aside from inspecting the usual roof, basement, HVAC system, and foundation, a luxury inspection covers the pool and spa, home cinema, security systems, guest room, and porch and lawn, to name a few.
Look for property with high resale value
As keen as the homebuyers are in choosing the perfect luxury home, it’s safe to say that luxury properties also come with risks. Even if investing in real estate is often solid and builds wealth over time, you want to make sure the odds are in your favor as far as the home itself and the location are concerned. When looking for a high resale value property, consider the future development in the area, the current condition of the home, neighborhood safety and security, and whether it sits on a convenient location for work, school, and play.
Talk to multiple lending companies or buy in cash
To make sure that you’re getting the best loan rates possible, talking with several financial companies will help assess their lending terms and conditions. It is not advisable to go with the first lending company you visit. Proceed only when you’re armed with a number of loan options.
When buying pricier homes, look into jumbo loans. Make sure you have a credit score of 700 in order to qualify for a higher-than-average loan amount set by the Federal Housing Finance Agency (FHA).
On the other hand, if you have more than enough money to pay cash up front, that’s even better. In the first place, it’s hard for sellers to say no to an all-cash buy. As a buyer, you won’t have to bother about interest rates, mortgages, and closing costs.
Budget for maintenance and repair
How much will you need for maintenance and repair? Ask your agent to recommend reputable and discreet tradesmen who can estimate a yearly spend on keeping your home and all of its extras (pool, sports courts, etc.) in tip top shape. Budget accordingly.
Consider all options before making a decision
Before buying that dream luxury home, make sure that all efforts have been exhausted to land the cream of the crop. Have at least two to three options and list down the pros and cons of each property. Go over your luxury home checklist again. Does this house have the amenities you want? Is it convenient for work, school, and leisure? Does the neighborhood feel safe and secure? Trim down those options and if the price is right, that dream property is almost yours.
Thoroughly read the contract
Take your time reviewing the fine print of a luxury home purchase. Bear in mind that your comfort and long-term investment are at stake. Coordinate with your real estate agent for any queries and concerns. Countercheck any references that may need revisions before you come to an agreement.
