How to Buy a Luxury Home

Luxury homes represent the best of fine living, whether that be in the form of an unbeatable waterfront view, custom features, upscale amenities, or neighborhood prestige. Since purchasing luxury properties comes with a level of expertise, it’s important for buyers to understand the intricacies and complexities of how to buy a luxury home.

Unlike a traditional home sale, many luxury sellers prefer a private sale. To weed out unserious buyers or spectators simply curious about the property’s luxe amenities, a luxury home may sell unlisted and undergo a different showing and open house process than traditional single-family homes on the market.

This means it’s imperative that home buyers work with a trusted real estate professional who specializes in luxury homes, as they will have the industry connections and resources to find unlisted high-end properties for sale. While it’s possible to find listings on a major search engine, these programs don’t provide all available options, and many upscale homes listed online may already be under contract by the time buyers come upon them.

Buyers unsure of how to buy a luxury home can start by tapping into their personal connections, such as friends and family. They may have valuable advice about the search process, tips on finding financing, or offer agent recommendations. Friends and family can also help buyers find a luxury property they love through their own connections to other friends and professionals or by spotting ads on social media.

Different neighborhoods offer various amenities.  Luxury neighborhoods typically come with additions like a community pool, a fitness area, concierge services, and other perks. When choosing a neighborhood, buyers should consider its location and proximity to their place of work, restaurants, grocery stores, pharmacies, and more. Buyers should also research the possibility of potential construction projects in the neighborhood, as these could block views, ruin a quiet atmosphere, or bring more traffic into the neighborhood.

It’s essential to partner with a local agent when starting a home search.  A local agent will have a deep knowledge of the area as well as established connections to help a buyer find a property sooner. Without an agent, a buyer will have to schedule their own essential appointments, such as home showings and open houses. Agents who specialize in luxury properties can also help clients learn how to buy a luxury home and guide them through each step of the process.

Before purchasing a luxury home, buyers should determine their must-haves in a property. This will help streamline their search. Luxury homes often come with custom additions and unique styles, as well as amenities like pools, outdoor kitchens, theaters, and more. By making a list of their needs and wants in a home, buyers can stay focused on finding the right property and avoid purchasing a house that doesn’t suit their lifestyle.

It’s recommended that buyers who plan on financing a luxury home with a mortgage should work with the bank they already have good standing with. This is because the bank will already have the buyer’s portfolio on hand, making it easier to qualify for a mortgage.

Whether financing through a bank or other mortgage lender, buyers should prepare for stricter qualification rules when it comes to purchasing a luxury home, such as jumbo loans.

A luxury purchase is a serious commitment that buyers should be completely sure of. A buyer should have one or two trusted advisors who can give them valuable guidance. Pay attention to what advisors like real estate agents and financial planners are suggesting. If they’re in disagreement, that could be a sign for a buyer to reassess their purchase.

Avoid any serious issues with a home purchase by investing in title insurance. Title insurance protects a buyer from problems with a home’s title and the financial losses associated with it. Common scenarios title insurance protects against include conflicting claims of ownership, mistakes in public records, undisclosed agreements, or forgery. Buyers can also get a warranty of title, a document that shows the seller has the ability to transfer the home’s ownership if needed.

Knowing how to buy a luxury home becomes a little more complicated when buyers look at co-ops and condos. An attorney can help buyers collect the extra documents necessary to secure funding or close on a sale, break down extra fees not associated with single-family units, and assess the investment’s overall viability.

Buyers shouldn’t rely too much on a luxury listing’s photos — even if they are high quality and professionally done. This is because many larger properties appear flat or lifeless via a two-dimensional image. Luxury homes are an immersive experience that can only be evaluated in person. Buyers should make an appointment to view homes before deciding if it is or isn’t the right choice.

It can feel daunting to negotiate the price or terms of a luxury home purchase, but this shouldn’t deter buyers from working toward a good deal. Buyers should work with their real estate agent to create a competitive and fair offer that stands out above the competition and impresses the sellers.

Buyers searching for luxury homes should prepare to work with a real estate expert who understands local and national market dynamics. Industry connections are key when finding a property and closing on a good deal, and having the help and guidance of a trusted agent like Anson Wu at the Alpha Group can be the difference between finding a dream home or missing out. If you’re ready to look at homes for sale in Boston or wish to sell your Newton, MA, real estate, contact Anson Wu today.