A luxury home is a highly desirable piece of property – not only are these homes gorgeous and masterfully crafted, but they are also valuable investments. Since the value of a luxury home increases over time and isn’t at risk of declining even during surges of economic instability, they are consistently a solid asset to invest in. Of course, buying a luxury home isn’t a simple process. You’re investing a large sum of money and need to exhaust every avenue to properly protect your investment.
Read ahead for the fundamental basics of how to buy a luxury home.
Understanding how the home-buying process works
The first step to buying a luxury home is to learn about the home-buying process as a whole. The following is a rundown of what to expect:
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Get pre-approved. Since you’re buying a luxury home, chances are you’ll be applying for a jumbo loan or a super jumbo loan. Be sure to get pre-approved through a mortgage lender first to know how much of a loan you actually qualify for.
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Find a real estate agent. Agents provide a number of useful benefits and resources, including access to the MLS, an extensive professional network, strong negotiation ability, informed consultations, and the latest data on current market trends.
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Search for a home. Scout the home listings in your desired area until a property catches your eye. Your future home should fulfill your wants and needs.
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Tour the home. This is optional but strongly encouraged. Sometimes a home looks great in photos, but when you see it in person, it doesn’t quite click with you anymore.
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Submit an offer. If you love the home, submit your best offer. Your agent will guide you through negotiations with the other party.
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Get a home appraisal or inspection. Your offer may include contingencies, such as an appraisal or inspection. These are great ways to determine if the home is in good condition and worth the large sum of money you’re offering.
Ask your personal network for recommendations
Never underestimate the power of your social circle. Voice your desire to buy a luxury home to your friends, family, and social media, including your desired location and the specific details you want in a home. Someone in your network might know of a seller with a listing that meets your criteria. In the event that they don’t, they may still be able to point you in the right direction.
Research different neighborhoods in your desired region
You may have a specific region in mind, but it’s worth researching the neighborhoods beforehand. Every neighborhood in a given area offers something different, whether it’s restaurants, parks, better commute times, or something else altogether. You should also consider the community. Do you want to move to a private or gated community? Do you mind being a part of an HOA? These are important questions to ask when narrowing down the precise location of your future home.
Work with a buyer’s agent who specializes in the area
A buyer’s agent is a real estate agent who operates on behalf of a home buyer. While you should always know the basics of how to buy a luxury home, working with a buyer’s agent relieves a considerable amount of stress and expedites the process. Look for an agent who primarily works in the region you’re interested in. They will be up-to-date on the current market trends, available listings, and other useful information for buying a home.
Prioritize what you want in a home
Take a moment to jot down a list of everything you want to see in your new home, separating each item into one of three categories. Your “must-haves” should include the top of your priorities for a home, while your “nice-to-haves” and “can-live-withouts” take less precedence. It’s always good to know what you want to narrow down your options.
You should also write a list of deal breakers – things that you absolutely do not want to deal with in a home. This could be anything you don’t want to see at all.
Work with a bank you’ve had previous business with
When selecting a mortgage lender, consider working with a bank you’ve already built rapport with. They’ll know who you are and feel more confident in your reliability as a borrower. Working with a familiar bank will make the lending and approval process that much easier.
Choose a trustworthy financial planner
Buying a luxury home requires a great deal of money and financial planning. Fortunately, financial planners are the perfect advisors for the job.
Specializing in long-term financial goals, a financial planner is equipped to help you manage your loan, payments, investments, and more. Of course, you must take great care to audit potential candidates before you decide to work with one. You are entrusting them with a lot of money, after all.
Invest in your future with title insurance
Luxury homes are costly – even more so if there’s an error or defect in the property title. To protect yourself from major financial loss, invest in title insurance. Title insurance protects against common claims, including liens, back taxes, and wills, as well as covering risks like falsified documents, incorrect filing of ownership, and flawed property records.
Talk to a real estate attorney about co-ops and condos
Luxury co-ops and condos are great pieces of property to consider. The main difference between the two is that buying a co-op means you’ve purchased a share, enabling you to live in a designated unit. While you don’t own the unit, you do have a say in the management of the property because you’re a shareholder. A condo, on the other hand, grants you full ownership of the unit and a portion of the convivial areas. You don’t own the entire property, just the unit you purchased.
If you’ve no need for a large luxury home, a co-op home or condo is a fantastic alternative. They’re perfect for young professionals and couples without children.
Visit the property in person
Photographs are specifically orchestrated to showcase the home at its very best, but first impressions may be deceiving. In order to fully grasp the condition of the home, you should always visit the property in person. Sometimes, a home ends up looking much different in person than online. Solidify your decision to buy the home by touring it in person and making sure that it’s truly the home you want.
For additional information on how to buy a luxury home for the best possible value, reach out to the experts at The Bellm | Corley Group. This team of elite real estate agents specializes in Dallas and the surrounding area, and their vast experience distinguishes them as the best of the best. With one of their seasoned agents by your side, you will be one step closer to finding the luxury home of your dreams.
*Header photo courtesy of The Bellm | Corley Group
