With buyers and builders negatively affected by COVID-19, your house building plans may have come to a halt a few months ago. However, buying a luxury home is a process that requires attention to detail, patience, and plenty of planning. While many of the strategies you would use to purchase traditional real estate are useful, there are a few special considerations to be made when buying a luxury home. If you still want to buy a luxury home, now is a great time to research, prepare, and come up with your requirements list. Keep these tips and tricks in mind, and you’ll be able to find the luxury home of your dreams.
Know your priorities. First and foremost, outline what your must-haves are. Whether it’s a specific location, a certain number of bedrooms, a massive kitchen to entertain in, or all three, knowing what you want out of a luxury home is the first step. With an idea of how you want your home to look, you’ll be better equipped to speak to and work with custom home builders.
Don’t limit yourself, either! Luxury homes often feature amenities like breath-taking views, movie theaters, in-home gyms, massive amounts of land, top-notch security features, and intelligent home appliances. Consider all of your wants, needs, and must-haves before speaking to a real estate agent.
Understand the buying process. Buying a luxury home comes with a hefty price tag. As such, it’s essential to educate yourself before you decide on a purchase. Discuss your priorities with your significant other, financial representative, and realtor to ensure everyone is on the same page and working towards the same goal. An open dialogue can help save you a lot of time and money in the long run — and it can also prevent buyer’s remorse.
Decide between new construction or an existing build. There will be a dramatic difference in price if you want a completely new home built. No one option is better than the other — it merely depends on your financial situation.
Vet the neighborhood. Knowing where you want to live is an integral part of buying a luxury home. Consider what you want your neighborhood to have — are there shops nearby? How are the schools? Are there activity centers or playgrounds for young children? Your individual needs will help determine the community that’s best for you. If you have a particular area in mind, this can help limit your luxury home buying options.
Additionally, be mindful of the upcoming projects in any given neighborhood. If you’re looking to move into a home nestled in a quiet cul-de-sac, make sure there aren’t plans to develop a major shopping center in your backyard anytime soon.
Get a handle on your finances. When it comes to buying a luxury home, understanding how much you’re qualified to spend is a major factor. Regardless of your personal finances, you may not qualify for a multi-million dollar home. Once you understand what you’re qualified to purchase, figure out how much you can afford to put towards a down payment, as well as the loan option that’s going to serve you best. Perhaps the worst mistake you can make is buying a luxury property that ends up leaving you house-poor. A mortgage lender will lead you on the financial path that’s right for you.
Pay attention to resale value. As with any home purchase, you’ll want to invest in a property that has a strong resale value. Only pay for a luxury home that you feel confident you can recover in costs when you decide to sell the house. Consider factors like location, the condition of the home, and any plans for commercial development in the future. Your realtor will be able to help you determine the resale value of the properties that interest you.
Be patient. It takes time to find a luxury home that will meet your wants and needs. This is especially true if you have it custom-built. Exercise patience — it will be worth it in the end!
If you’re in the market for a new luxury home, use these tips to find the one that’s right for you.
