Looking for a home with stunning views, a large lot, spacious floor plan, high-quality materials and unique design? You sound like a luxury home buyer! While these features will certainly be the envy of the neighborhood, they’ll also come at a big price. As such, you’ll want to be well informed and prepared for this major purchase. Keep reading for five of the most important things to know before buying a luxury home.
1. HIRE A LUXURY REALTOR
We start with this tip because the luxury real estate market can be tricky. The properties are unique and don’t come on the market often. Further, a luxury home is a significant investment, and you want to make sure you get it right. Before you attend your first showing, find a realtor to tour it with you.
Particularly for luxury homes, listings may not even be widely available online. Some luxury sellers prefer not to publicly list their home for privacy reasons. As such, it is vital to have an experienced professional who is in the know and can show you the types of luxury properties you’ve been dreaming of. They should be familiar with your area and have their finger on the pulse of the local market.
After you’ve identified the home that’s right for you, you’ll need a savvy realtor to negotiate the best deal and see the transaction through to closing. If you’re looking for a seasoned professional to help navigate this high stakes process, Brandon Carney can help.
2. MAKE SURE YOUR FINANCES ARE IN ORDER
Having an impeccable credit history and financial situation are critical to the purchase of a luxury home. If you are financing a million- or multi-million dollar property, you’ll most likely require a jumbo loan. A jumbo loan is any mortgage that is above conventional loan limits set by the Federal Housing Finance Agency. The limits are different across the country, but in 2022 most are around $627,000.
These loans require very good credit, low debt-to-income ratios, and a larger down payment than conventional loans. Some lenders will also require a higher level of cash reserves for jumbo loans. Your lender will evaluate your financial data to check that you can afford the payments. Work closely with your financial advisor to determine the appropriate budget for your situation and that proper income documentation is available.
3. FEATURES OF LUXURY HOMES
After you’ve gotten your finances in order and established your budget, you’ll also need to take stock of what elements are most important — what makes a luxury home to you? Depending on your budget and the market in your area, you may not be able to get everything you want. Common features of a luxury home include great views, exclusive neighborhoods, stunning design, unique architecture, lavish outdoor spaces, and high-end amenities. Decide which of these are most important to you, and work with your realtor to find listings that check all the right boxes.
4. LOCATION, LOCATION, LOCATION!
While this may be a real estate cliche, it’s a well-known phrase for a reason. Pay close attention to the neighborhood you’re looking at. Once you find a beautiful luxury home with fine features and finishes, explore the neighborhood. The most important factors to consider when assessing a home’s location are proximity to community, lot size, other homes in the neighborhood, existing and planned development, amenities, and appearance.
Keep in mind that homes in cities where there isn’t much space for additional expansion are worth more, and will continue to be worth more moving forward. It’s a simple case of supply and demand. If the city has limited additional capacity, the supply is limited and as demand rises for homes in that area, your real estate will be worth more!
5. PAY ATTENTION TO THE FINISHES
One of the most easily overlooked things to look for when touring a house are timeless finishes! Unless you’re up for a complete remodel, pay attention to the home’s finishes. A home with timeless luxury finishes will continue to be beautiful well into the future. You’re likely paying top dollar for your luxury home, so you don’t want to invest in a home with trendy countertops, floors, bathtubs, or tile that will go out of style. These foundational elements are expensive to update.
Style comes down to personal preference, but finishes like natural hardwood floors, neutral tile, and simple natural stone countertops will always be beautiful. Your possessions and decor will help the home feel personal and can easily be changed to freshen up the environment.
Buying a home with a very specific style is also more difficult to sell later on down the road. Sure you loved that bright Spanish tile in the bathroom, but will everyone like the style when it comes time to resell? Paint color and decor can be easily changed, but the foundational elements like flooring and countertops are not.
START YOUR SEARCH
A new home purchase is always an exciting adventure, and a luxury home ups the ante even more. A realtor like Brandon Carney — who’s experienced in the luxury real estate market — can be at your side every step of the way to coordinate with finance professionals, find the property that fits your priorities, advise you on the best location, and point out vital details in a prospective home. Reach out to Brandon when you’re ready to start the process.
