Buying a luxury home is an entirely different experience from buying a typical home. Due to the exclusivity of the listings, there tends to be less competition between multiple buyers, and the process inevitably moves more slowly. Patience is vital when buying a luxury home, as you want to make a wise decision when making such an enormous financial investment. In this article, we empower you by walking you through the critical steps on how to buy a luxury home efficiently and with minimal stress.
Understanding how the buying process works
If this is your first time buying a luxury home, remember that there are several steps involved. You want to ensure you’re making the right decision, and you may encounter barriers that slow down the process:
1. Considering the significance of the financial investment, you need extra time to research any property you view.
2. Most luxury homes don't have rolling open houses like typical properties. While you'll get an idea of the property from its listing information, it takes time and patience to make appointments to view it in person.
3. Due to the high prices of luxury homes, most sellers want proof that you can afford the house before they agree to a viewing.
4. If you find the home of your dreams and make an offer, a stricter set of checks is in place to confirm your financial stability.
1. Considering the significance of the financial investment, you need extra time to research any property you view.
2. Most luxury homes don't have rolling open houses like typical properties. While you'll get an idea of the property from its listing information, it takes time and patience to make appointments to view it in person.
3. Due to the high prices of luxury homes, most sellers want proof that you can afford the house before they agree to a viewing.
4. If you find the home of your dreams and make an offer, a stricter set of checks is in place to confirm your financial stability.
Ask your connections for property recommendations
If you're researching how to buy a luxury home, it is essential to realize that most are often sold through personal connections between luxury agents. You cannot rely on MLS listings alone to find a luxury property. Buying a luxury property "off market" is only possible if you have the right connections.
Many affluent homeowners are highly protective of their privacy, and with confidentiality paramount, they often sell their homes through luxury agents without listing them on the MLS sites. Be sure to hire an established, reputable luxury real estate agent with a strong community network. In addition, use your connections with friends, neighbors, and co-workers to get tips on which houses will enter the market soon. Due to the prestige of most luxury properties, they are often marketed on select luxury real estate sites or through private luxury agents as pocket listings.
Research the neighborhoods
Once you've chosen the city or town you want to live in, the next step is to research the area's neighborhoods to find the one that most closely suits your lifestyle and interests. Your agent will be a valuable contributor to this endeavor. They can advise you on the top luxury neighborhoods in your area and help you narrow down your search depending on the amenities you desire. For example, you’ll want to research the neighborhood's proximity to the city center, architectural styles, and school system.
Work with an agent who knows the area
When you are in the market to purchase a new property, team up with a luxury agent who is highly familiar with the area. Your real estate agent may even be a resident of the region and should have a strong record of successful closings in the housing scene, with an impressive network that includes other local luxury agents, banks and mortgage lenders, real estate attorneys, city or town officials, contractors, home inspectors, and other essential personnel. When hiring a luxury agent, you will want someone who will work hard to make the buying process hassle-free. Successful luxury agents have solid reputations and work with your best interests at heart.
Prioritize your must-haves
When searching for your dream home, defining your preferences and creating a list of "must-haves" and "wants" is essential. Some points to consider are location, view, type of floor plan, kitchen with upscale appliances, spa bathrooms, game or theater rooms, wellness or exercise rooms, bedrooms, and bathrooms. While comparing homes, you and your agent should continue to consult and refine your list as you determine the essential traits for your ultimate luxury home.
Work with a bank you have a history with
While many mortgage brokers can offer you a comprehensive array of options when shopping for mortgages, the significant advantage of working with your bank is that you have more control and will likely get a better contract. Furthermore, your bank may offer you special incentives and benefits as a long-time customer, including lower rates and specific loan programs targeting investors and self-employed home buyers. In addition, you will get a full-service experience, as once the loan closes, you will still make monthly payments to the same bank that originated the loan.
Choose a financial planner you can trust
Dealing with financial matters can be stressful, emotionally draining, and, worst of all, can put your finances at risk. Therefore, it is imperative that you trust your financial planner.
A trustworthy financial planner will be transparent with you, listen to your concerns, maintain constant communication, respond promptly when needed, and work in alignment with your values. In addition, an excellent financial planner will help you to build wealth and maintain financial independence.
Talk to an attorney about co-ops and condos
If you're considering a luxury co-op or condo, you will want to consult an attorney before investing. An attorney can help you determine the financial viability of the building, considering such factors as the financial condition of the association that manages the property, whether there are any pending lawsuits against the management company, and the bylaws and restrictions regarding the property. It’s also essential to hire an expert to determine the structural condition of the building and talk to current or former owners to assess the pros and cons of owning the property.
While the main draw of owning a co-op or condo is that having only partial ownership relieves the owner of many of the hassles associated with owning and maintaining a single-family home, you will want a reputable attorney to represent your interests in finding a sound property that will be financially advantageous.
See the property in person
While listing photos and virtual tours have come a long way in recent years, nothing beats seeing the property in person. When buying a luxury home, sometimes mere pictures don't do it justice. Open houses inspire fresh ideas for your running list of "must-haves" for your luxury home, and they also help you rule out options that you may have been considering but don't impress you when you see them in person. In addition, you will get a feel for the house, the neighborhood, the noise level, the proximity to other homes, and other features that aren’t apparent in listing photos.
Making an offer
You've done your research, viewed several homes, and now you're ready to make an offer on the luxury home of your dreams. Before you write that offer, work with your agent to research the closing prices of similar properties in the area. Your experienced agent will have extensive knowledge of recent closings in the area and can help you determine a competitive offer strategy.
If you're ready to start your journey towards buying a luxury home, reach out to premier agents Matt Zaremba and Allen Potts at the Zaremba Potts Group. From Meadow Village to Moonlight Basin real estate, this is the team you want by your side if you’re looking for luxury. Get started today!
*Header photo courtesy of Zaremba Potts Group
