Expert Tips for Buying a Luxury Home
From a brand-new high rise condo overlooking the water to a historic Cape Cod estate, there’s an abundance of choices in high-end homes. Consider these tips from luxury home market pros before buying your dream home.
1. Work with a local expert.
It’s critical to have a good buyer agent who is familiar with the area you want to buy in. There’s a bit more control on access to high-end properties in terms of fewer open houses and more appointments have to be made to see them.
2. Learn the search process.
Many luxury homes go unlisted to protect a seller's privacy. These properties are often found through the Realtor's personal connections as opposed to the MLS.
You may need to go to more online sources as not everything is on the large search engines.
3. Go beyond the photos.
Make sure you don’t dismiss properties based on their front elevation photos. Many large homes aren’t photogenic that way and you have to see them in person to appreciate. Do a search of the property and vicinity on Google Earth so you can see what’s around the home
4. Bank on your relationships.
Start with the bank you have a relationship with. They have your portfolio already. Also, know the difference between the pre-approval letter and the prequalification letter.
5. Document everything.
There is more scrutiny today in the high-end market. Financial documentation is critical. Anyone who is making a lot of money has a manager or an accountant and tries hard to shelter their money so it can be difficult to show the bank you have the income.
6. Hire smart, reliable advisers.
A good Realtor won’t make the client’s decisions but will make suggestions. Pay attention to your financial planner and Realtor that you trust. They should agree on what you should be doing and if they don’t, arrange a meeting.
7. Don't forget about title insurance.
You need to get title insurance so you’ll be insured against any problems that were forgotten about. You want to make sure you have a chance to have a look at the exceptions page of the title insurance process before closing time.
8. Look into the future.
Make sure you know what building is planned around you. What happens if someone pushes the bar and builds another building even taller?
Know the timeline. You don’t want to tie your cash up for a long period of time if there are any kinds of construction delays.
9. Know what to expect with cooperatives and condominiums.
For co-ops and condos you want to be represented by an attorney who will research the building on its financial viability.
10. There's room to negotiate.
It’s individual points, the view or remodeling that makes these properties one of a kind and makes them able to command a particular price. Have your agent research the comparable properties that have recently sold, getting closing prices, right before you make an offer.
One example of such an amazing luxury home is Villa Venturia: