Buying a luxury property can be exciting, but it takes careful consideration to make sure you don’t make a mistake. Before you buy a luxury property that ticks all of your boxes, keep these tips in mind to make sure you don’t end up with a bad investment.
#1 Partner With a Luxury Property Agent
When purchasing a luxury property, you will need the expertise of luxury real estate agents and luxury property managers. An inexperienced real estate agent who does not deal specifically with luxury properties will not only fail to help you find the property you desire but will also fail to assist you in negotiating the purchase price. Simply put, if there’s a particular luxury property that you want, you’ll have to partner with a luxury real estate agent to get it.
In addition, experienced agents have access to exclusive properties that the “regular” realtor does. They also have connections with local realtors, making them the first to know the moment a particular property is listed on the market. Upscale properties owned by VIPs are rarely listed on ordinary sites, but those with the connections can be at an advantage when they’re finally for sale.
#2 Consider If You Can Afford the Luxury Lifestyle
Before buying a luxury property in South Florida, be sure to crunch the numbers to determine how much you’ll be spending in the long term. Owning a luxury property comes with multiple responsibilities, and more often than not, there will be more to do when it comes to maintenance and repairs. Soon, your tasks can take a toll on your finances.
As a luxury homeowner, you should expect to spend more on your property than you would with an ordinary home. Will you be able to afford your home’s day-to-day demands? Keep in mind that the only way for your property to maintain its value or appreciate is if you stay on top of upkeep. More importantly, can you afford the costs associated with homeownership such as insurance? The more expensive your property is, the more you’ll have to pay in terms of your premiums.
Property management companies can shed a light on what expenses you can expect. To consolidate your costs, you could also work with a property management firm that can undertake all of the maintenance tasks for you.
#3 Don’t Buy Based on Appearances Alone
You may not know this, but many agents stage the property during showings. They know what you’re looking for, so they spend thousands of dollars to stage the property according to what would fit your lifestyle. They add fancy decoration, furniture, etc. to the rooms to make them look more desirable, and to make you think, “This could be what my life looks like.”
With that said, how the property appears may tempt you to say yes immediately. You may be swayed by the upscale countertops, the chandeliers, and more. But keep in mind that these pieces likely won’t be part of the property – they’re only there to entice you. As you view the property, remember to envision an empty shell. Without the furniture, decor, etc., will the floor layout work for you, or are you simply swayed by how well it was staged? Remember that beneath the decor, the property may not be as suitable as it seems.
#4 Consider What the Future Has in Store
The home may be in the best neighborhood now, but you’ll never know what it might look like in ten or twenty years. In short, you can never be certain of the future of the location that you chose. That’s precisely why you ask a real estate professional if there are any planned developments in the vicinity.
For instance, if the local city council plans to add access to public transportation near your property, this can increase its value. Another development that can increase property values includes commercial spaces, as this can raise the employment opportunities in the area. However, if cemeteries, strip clubs, and gun ranges will be built, these can decrease your property’s value over time.
It’s crucial to consider developments as they can impact your property’s attractiveness. This is especially true if you plan to sell your property later on. You will have a harder time selling your property if it’s surrounded by undesirable amenities.
Developments can also affect your quality of life. For instance, if a big building will be constructed in your neighborhood, you’ll be dealing with constant noise for months. Similarly, you should consider whether or not you’ll be able to stand the traffic that businesses will bring, should there be shopping centers constructed in your area. Also, there are some important things to consider before buying a home that you can learn.
#5 Inspect the Property Before Purchasing
There’s a reason why the property was for sale, and chances are, the current owner doesn’t want you to know why. Maybe it’s because the basement is full of mold, or the structure is near total destruction. Whatever it is, it’s vital to uncover what may be wrong with the property before it’s too late. Deeply inspect the property first rather than making an offer without seeing the property.
A meticulous home inspection performed by a professional inspection company will provide you with the reassurance that your choice is a sound one. It could also warn you of underlying issues that could cost significant money in the short and long run. By doing so, you’ll be better prepared as you enter the negotiation stage – you may even be able to negotiate a lower price, considering the property’s problems. A property management company should be able to suggest reputable home inspection companies for you to consider.
Looking For a Luxury Property in South Florida?
A luxury property is one of the most expensive investments you can make, which is why you need to seek the assistance of real estate professionals. At Luxury Property Care, we connect homeowners with upscale properties that not only meet their budget, but also align with their long-term goals. We’ll make sure to provide expert advice on properties of interest to ensure you make a sound decision. Whether you want to invest in luxury real estate to live in, rent, or sell, we’re here to help you do that and more.