Buying a luxury home? It’s going to be one of the biggest investments you’ll ever have, so it pays to do your homework before you move in. If you don’t, your dream home might turn into a nightmare. Below, we’ve put together a few tips to help you find the perfect upscale property – one that you won’t regret.
1. Hire a Realtor
Work with a realtor who has experience with luxury real estate. They’ll be the best person to show you properties within your price range. They’ll take the time to scour the market and connect you with people who can speed up your purchase, such as real estate attorneys.
Keep in mind that not all homeowners (particularly VIPs) aren’t comfortable listing their properties publicly due to privacy concerns. A luxury realtor can use their connections to help you find properties that aren’t on the MLS. Being able to view these exclusive listings can boost your chances of discovering your one-in-a-million dream home.
To find a realtor, see if anyone you know has worked with real estate professionals who deal specifically with luxury properties in the past. You could also use Google to create a pool of luxury real estate agents in your region.
2. Know What You Want
A million-dollar price tag doesn’t automatically make it a high-end home. If it isn’t your definition of “luxury”, it isn’t the luxury home for you. For example, the word “luxury” could mean more space to you, while to others, it could connote 360-degree views of the vast landscape. With that said, It’s crucial to clarify what luxury means to you before you explore your options. That way, you can concentrate on the aspects that matter to you the most.
Write down all the things you want, such as views, first-rate facilities, privacy, a place free from any noise pollution, a certain architectural style, and so on. When you know your priorities, you can easily pare down your options. Also, there are some important things to consider before buying a home.
Communicate to your realtor what type of “luxury” you expect. Alternatively, you could connect with luxury property management companies – they might have clients who want to sell their luxury homes.
3. Inspect the Property
Don’t rely only on photos. You won’t be able to tell how well the house was maintained or if any maintenance work is required without seeing the property in person. Keep in mind the possible drawbacks when making an offer without seeing the property. By conducting an inspection, you’ll be able to see the current condition of the property and find out if there are problems that would be too costly to deal with. If the property is a fixer-upper, you might end up paying thousands more than what you initially planned.
Besides, high-end homes should be viewed in person to be appreciated. Crisp pictures can’t capture the actual beauty of upscale properties with their wide-open interiors, fancy decor, and wrap-around views.
Pro Tip: It can be beneficial to have a property management company by your side at the inspection. They’ll be able to give you a ballpark figure of how much you’ll have to spend to make your home move-in-ready.
4. Choose the Best Neighborhood
Even if you’ve already set your sights on a specific neighborhood in mind, be open to other neighborhoods as well. Remember, your dream home should also be in your dream neighborhood. As they always say in the world of real estate, “Location, location, location.”
Have an open mind when you go neighborhood scouting with your real estate agent. If you choose the incorrect location, your dream home might become a nightmare. Before you buy a home, be sure to study the trends, and find out if there will be infrastructure built around the area in the future. Certain developments, such as the construction of a cemetery, can cause your property’s value to dip.
A property management company can help you find out if the city has plans for your preferred neighborhood. They can also provide you with alternatives in case your dream neighborhood isn’t as ideal as you had hoped.
5. Keep in Mind the Taxes
Don’t forget to find out how much you’ll have to pay in taxes in the area where you plan to purchase your luxury property. A property’s location can cause its tax rate to increase or decrease. Furthermore, its tax can be calculated based on its current value – and since it’s a luxury home, expect its taxes to be very steep.
To make an informed choice, make sure to look into local tax laws. You can use a tax calculator to determine your yearly tax payment amounts. A property management company can also help you calculate how much you’ll owe in property taxes.
6. Negotiate (Even If You Can Afford It)
Who says you have to pay the whole price for a luxury property? So what if you can afford it? If you can prove that the property should be sold at a lower price point, you’ll be in a strong negotiating position.
Do note, however, that it might be more challenging to compare your prospective property to other upscale properties on the market. This is due to the fact that properties at this price point are rare, and upscale homes tend to have more distinctive features. For example, a 5-bedroom home could cost $300,000 more than another 5-bedroom home all because of some amenities.
To guarantee a win during negotiation, consider working with a property management company. They have a wealth of data at their disposal to help you negotiate the best possible deal.
7. Take Your Time
A high-end home is a huge investment. It would be worth your while to take your time and weigh all of your options. Don’t buy a home if you aren’t 100% sure that it’s your dream home, or simply because you don’t want others to beat you to it. Be patient until you find the perfect home that checks all of your boxes. The good news is that compared to “standard” homes, high-end homes tend to sit on the market for a longer time. That should give you enough time to make an informed decision.
Remember to Hire a Luxury Property Manager
Once you’ve purchased your dream property, make sure to partner with a luxury property management company. A dedicated property manager will manage your upscale home in style because it deserves nothing but the best. In that way, you can preserve your investment and maintain its upscale status for years to come.
At Luxury Property Care, we give high-end homes five-star treatment. Call us at (561) 944 – 2992 or fill out our contact form today for more information on our property management services for South Florida homes.