Top 10 Tips to Buying a Luxury Home

Written by  //  December 21, 2012  //  Home Construction, Real Estate  //  Comments Off on Top 10 Tips to Buying a Luxury Home

So you’ve jumped tax brackets and are now breathing that rarified air of those wealthy enough to afford the finer things in life. So what now? What’s the first thing the newly affluent do with their vast reserves of monetary income? For many, the first order of business is to buy a home. But those who have navigated their way around the luxury real estate market in the past know there are stark differences between buying a middle-class, single-family home and purchasing luxury property.

With that in mind, here are the top tips to ensure the purchase (or home construction) of luxury real estate is a wise one.

CONSIDER ALL OPTIONS

This may seem like a given, but what’s interesting about the luxury market is that not all homes are readily listed in easy-to-find outlets. Oftentimes this is to protect the privacy of the seller – many of whom are very high-profile individuals. Luxury homebuyer will likely need to dig deep in far-flung corners of the Internet to find every available option. Also, utilizing the personal connections of a realtor specializing in high-end properties is crucial to maximizing options.

LOOK PAST THE PHOTOS

While this is true of all home buying, it is particularly true of luxury homes. House hunters may expect a photo of a luxury property to jump off the page and exude communicate all of its gilded glory in one image. In point of fact it’s very difficult for luxury properties to communicate all of their positives in a photo or two. To truly experience the scope of these properties, the buyer must tread the terrain.

EXAMINE CO-OPS AND CONDOS THOROUGHLY

When dealing with co-ops and condos in the luxury market, it’s important to consider a number of factors. Is the building financially viable? Who are the tenants? The best thing to do when considering purchase of a luxury co-op or town house is to hire a lawyer, as they are in the best position to uncover this vital information.

PLAN FOR THE FUTURE

It’s important not to tie your money up in a property that is going to be plagued by production delays. It’s also important to consider the adjacent properties. Is the vacant lot across the street going to be an office tower in the not-so-distant future? And if so, what will this do to your property value?

FIND AN EXPERT

It’s or paramount importance to work with a buyer agent who understands the area you intend to look at like the back of his or her hand. And because many high-end properties are difficult to access in the form of open houses, you need an agent with the pull to arrange viewing appointments.

CULTIVATE A GREAT RELATIONSHIP WITH YOUR BANK

While it isn’t terribly difficult for those of a certain income to find favor with bankers, it’s still important to develop a strong relationship with your bank. After all, it’s they who will manage the portfolio and navigate the winding rode of luxury real estate purchase.

DOCUMENTATION

There is a lot more scrutiny in the luxury home market today then there was 30 years ago. That’s why it’s important to ensure your accountant or money manager documents every step of the buying process.

WORK WITH EVERYONE

If you have a financial planner than it is crucial they work in conjunction with the realtor. You’ll know you’re on the right path to a great purchase when both your money manager and realtor agree on the right course forward.

REMEMBER TITLE INSURANCE

Title insurance is necessary in order to prevent fallout from unforeseen problems. It’s also important to peruse the “exceptions” page of the insurance policy before signing.

THERE’S ROOM TO NEGOTIATE IN THE LUXURY MARKET

Have your real agent obtain info on comparable properties in the area. Pay close attention to the closing prices of properties that have recently sold and use this to your advantage right before you make the offer.

These are just a few tips to help ensure the experience of buying that perfect new luxury home is a positive one. Indeed the process of buying a high-end property may seem nerve wracking at first. But remember, as a high-end buyer, you have a lot of weapons at your disposal — so be sure to use all of them while off on the hunt.

Author Information
Ken Thomas is a professional blogger that enjoys providing real estate advice. He writes for Onboard Informatics, a leading real estate data company.

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