Luxury is a relative term. In real estate, luxury is defined differently across different markets based on several parameters. However, simply because a property is being sold as a luxury property does not mean that the home is a luxury home. While a small house in a densely populated city may be considered a luxury, a similar house in an area where the land is plentiful will be considered not-so-luxurious. Similarly, a small luxurious house in an area with predominantly large luxury homes will not fetch a price similar to the larger homes.
A luxury home is not just an expensive house – it is cream housing in an exclusive area. It usually has impressive architecture, great landscape, and state-of-the-art living spaces. They also provide ample spaces for living, parking vehicles, and primarily an excellent living environment. Therefore, it is important that you take utmost care before buying a luxury home. Here are some luxury home buyers realtor tips:
1. Find the Right Real Estate Agent
Purchasing a luxury property is different from a non-luxury one. The best way to find a good luxury property is by hiring the services of a real estate agent who specializes in the luxury segment. The right agent will be aware of the overall luxury segment and specific areas where luxury homebuyers are preferring to buy a property. He can also recommend other properties that fit your requirement.
In the luxury segment, many properties for sale are not advertised publicly. This is another area where a good real estate agent can be helpful since good agents have a network of peers and luxury home sellers. Above all, he can provide you with all the relevant information which can help you make the right decision saving you time and money in the process.
Also Read: Do you Still Need a Real Estate Agent?
2. Keep a grip on the finances
Buying a luxury home is a huge financial decision. Therefore, it is important to cover all the aspects when it comes to the costs associated with buying one. Many sellers in the luxury segment need an indication of the buyer’s financial situation even before they allow viewing. Also, once you make the deal, many sellers would want to verify that you have funds and may ask you for your bank statement.
Usually, luxury home buyers either have the funds available to buy the property or are in a comfortable position to get a loan. Ensure that you research the laws pertaining to tax in the region where you are planning to buy the property. Try to get a financial advisor, lawyer, and an accountant in your team to ensure that the paperwork is all in order.
ReadMore: Should you Finance your Real Investment
3. Take your time to decide – don’t rush
Buying a luxury home should not be a snap decision for many reasons. You should not take any investment of this magnitude lightly. The luxury home sellers are usually not in any hurry and being an exclusive market, the buyers are very few. This actually works in favor of the buyers who can take time to negotiate a good deal. Do some homework about the property, location, and the development plans around. After all, you wouldn’t want a high-rise to develop in front of your property after you buy it, right?
Also Read: 5 Richest Areas for Luxury Living in Dubai
4. Don’t buy unless you visit the property at least once
This is applicable to international investors. Even if you see a hundred images or videos of the property or the property looks super-luxurious in the brochure, you should not make a decision of buying the property unless you have visited the property at least once. Usually, the photographs are taken by professional photographers to make the property look irresistible.
Also, since you are buying a luxury home, you wouldn’t know if the house is luxurious unless you go there yourself. If possible, you should visit it more than once and at different times of the day. You will be spending a fortune buying the house, hence, make sure that you visit the place before deciding. You can also stay at a hotel near the location to get an overall sense of the neighborhood.
5. Inspect the house and area diligently
Whether it is the comfort and luxury of your family or the return on investment, you must give inspection of the house and research on the area its due importance. A good luxury home is situated in a great neighborhood with an optimal balance between modernization and nature, style and class, along with the presence of some luxury stores around. Also, try to look at the future plans of the area that the government has made.
Every home requires some maintenance before you start living in it. Inspect the house well and try to rope in the services of a home inspector with experience in inspecting luxury properties to uncover potential defects.
6. Analyze the market trends to estimate the resale value
Without trying to dampen your mood about buying a house, it is important to remember that at some point in time, you will probably sell the house even if you are buying to live in it. Therefore, you should try to understand the property trends in your area and get a fair estimate of its resale value. Further, when you are remodeling the house, you must keep the Return on Investment (ROI) in mind.
Summing Up
Remember, a luxury home is not simply a costlier home. It is a lifestyle. Right from talking to your agent for the first time to visiting the property and closing the deal, keep the overall experience offered by the property in your mind before buying. Luxury is not purchased every day, take your time and choose well.
