Purchasing a house is a big deal, but when you’re shopping for luxury lifestyles, the stakes are higher, and the processes are a bit different. Here are some tips to consider before buying a luxury home.
1. Know what it is you want, or don’t want, in a luxury home. Which features are more important to you, unique architecture, practical layout, or expensive upgrades like media rooms or security systems? When making your list of must-have items, consider which of those items come standard with the design of the home such as vaulted ceilings, ample window light, floor plan, gated community, etc., and which you may be able to add later, such as technological gadgets or fitness equipment. Do you want move-in ready or are you interested in a fixer-upper? Nail down your details before moving forward with your process.
2. Get your funds in place. While you’re working out your must-have and deal-breaker items for your new luxury home, it’s paramount that you are pre-approved for your home mortgage loan, unless you plan on paying cash. Cash can be beneficial in competing with international buyers, but may not be the best use of your money. Understand that financing a luxury home takes longer than the applying for a standard mortgage, so you’ll need to practice patience, and you may be required to disclose personal information in the process. You may find it simpler to work with bankers and lenders with whom you have a history.
3. Hire a real estate agent that knows about luxury homes. Buying and selling luxury homes is a different field than transactions around standard home costs. Sellers of luxury homes market the sale of their house differently than standard listings to protect their privacy and to eliminate wasting time on unqualified buyers. Your agent should be an expert in buying and selling high-end real estate. He or she should know the ropes of accessing the types of home for which you are shopping, and should be familiar with the details, additions, inclusions, and upgrades of luxury homes. Choose an agent who is not only an expert in luxury homes, but with whom you have a good rapport, and with whom you can openly communicate regarding your needs. Consider asking friends, family, and associates for their recommendations, and then research the information received to ensure that you’re working with the right agent for your needs. The Lisa DiNoto Group would love to represent you when it comes to the purchase of your luxury home. Give them a call at 909-921-2544.
4. You’re not only buying a house, you’re buying a neighborhood. When you find a luxury home that you are interested in purchasing, do some research about the community, and try visiting the area several times, at different times of the day. You may even find it advantageous to stay a night at a hotel in the area to test drive the neighborhood. Do your homework and know what building permits have been granted for the area, so you don’t lose your million dollar view to the construction of a high-rise commercial building, or damage the resale value of your house. Check out any associations and what those fees will be in addition to your mortgage.
5. Consider having an independent inspection done on the home if it’s previously owned. Ask the seller specific questions, such as why they are selling. This may help uncover faulty items the seller was hesitant to disclose. Make sure the title on the house is free and clear and look into title insurance. Ask if there’s a home warranty in place. If the home you’re considering purchasing is new construction, do your due diligence in researching the builder to make sure their reputation is solid.
Buying a luxury home can be an exhilarating experience. Your dream home is just a few steps away from becoming a reality, but when you’re making an investment of this size, you need to make sure your assets are covered. Know what you want and don’t want in a luxury home, prepare funds in advance, work with experts, investigate the neighborhood, and don’t be afraid to ask questions of the current owner, or to inquire into the reputation of the builder.
Ready to talk about buying your luxury home? Call The Lisa DiNoto Group at 909-921-2544.