It’s easy to spot a beautiful home while house hunting, but what truly defines a luxury property? If you’re hoping to buy your first luxury home but aren’t sure how to navigate this process, look no further. We’ll guide you through our savviest tips for snagging your dream property.
Understand the Search Process
With higher-priced listings, you’ll be competing with a far smaller number of buyers, so with a little patience, you’ll most likely end up with the ideal property. The homes you tour are going to have top-of-the-line technology and appliances, gorgeous pools, and extraordinary amenities. The focus will be on finding the perfect fit for your particular needs, your ideal lifestyle and daily routines. Make sure to carve out a decent amount of time to view these properties, as there is a lot to see and discuss. Bigger homes may have an interesting history or architectural story, and you’ll want to ask all the right questions about the neighborhood, security, and property amenities.
There are plenty of opportunities to find luxury listings online, although the ones you may be looking for, may not pop up in a broad search query. Contrary to a normal house search, many luxury homes are sold using the REALTOR®’s personal connections, as some listings may not be publicly available. Agents are experts at networking, as this helps boost their reputation, generate leads, and build rapport with other listing agents, as it may help put your client’s bid ahead of others.
Determine Your Priorities
Starting with a clear set of criteria will help guide you to finetune your search. If you’re not remotely sure of your wants and needs, make sure to do some research and gather inspiration to narrow your search. Look at pictures online for size, style and amenities.
Find a Resourceful Local REALTOR®
An agent well-versed in luxury real estate will be familiar with the ins and outs of their area. If you’re looking for a home in a large city, they’ll know which neighborhoods will be the right fit based on your list of qualifications. They’ll also be knowledgeable when it comes to local bylaws, regulations, and environmental intricacies. Make sure that you choose an agent who is going to understand your lifestyle and story, as this will help them best pull listings for you to visit. When you’re on the same page as your agent and they know exactly what you’re looking for, it will help ease anxiety and uncertainty.
Document Everything, Consult Advisors, and Acquire Financing
Since this is a significantly higher stake investment, it’s important to consult a lender, an attorney, financial advisors, and/or tax experts about buying a property. Together with your agent, they’ll be able to confidently guide you through certain parts of the process and make sure the transaction is handled properly. Sellers only want REALTORS® to bring them qualified buyers, which means getting preapproved ahead of time and be prepared to provide financial information and statements.
In the beginning of your search process, you’ll want to decide how you’re going to pay for the home. Cash transactions are common in the luxury space, especially if there are high-interest rates in the market. If you’re still looking to attain outside financing, make sure to work with a trusted lender to determine how much mortgage you can afford based on factors such as income, location, and debt. It’s typical for buyers to apply for a jumbo loan in order to attain a larger sum of money, as conventional loans often max out at a certain amount (depending on your state or county). The conforming loan limits are rising each year, but luxury homes typically sell for much more than these are allotted.
Final Thoughts
If you’re looking for your first luxury home, you’re in the right place. Los Angeles and Beverly Hills boast the most beautiful properties in the world, and are high in exclusivity and demand. The popularity of these areas is growing so rapidly that owning an investment of this nature may be a beneficial next move. If you’re ready to start looking at luxury properties, ask questions and discuss some first steps with your REALTOR® to find the perfect right fit!