By Fabi R. Gomes | July 8th, 2019
Whether you’re looking for a waterfront home with breathtaking country views or a penthouse in the heart of downtown, the purchase of a luxury property differs from that of a typical home. Read further to avoid common mistakes buyers make along the way.
1. Understand the buying process: Educating yourself on the high-end buying process will save you time, money, unnecessary headaches.
2. Know your neighbors: Location is typically the most important factor when shopping for a new home. By understanding the developments in the neighborhood, future plans for the area, and the local amenities you’re seeking, you can make an educated decision and protect your investment.
3. Know your priorities in a home: The availability of features for luxury real estate is endless. From private basketball courts to infinity pools, the only limit is your imagination (and bank account). To live in the home of your dreams, have a clear understanding of your priority features—then keep those features in mind when house-hunting.
4. Understand your financing options: Knowing how much house you qualify for is crucial in any real estate transaction, but it’s even more important in the luxury market. Don’t assume you qualify for a multimillion-dollar home just because you have excellent credit.
5. Hire a top luxury-certified REALTOR®: A skilled and certified agent will ensure you stay within your budget, protect your best interests, and guide you through the purchase according to the strategy you’ve discussed.
6. Patience is a virtue: Any time a large financial commitment is involved, it’s especially important to make a well-considered decision. Keep in mind that the competition on the high-end market is a lot smaller than on an average real estate market. Take the time to make a well-informed decision.
7. Look for strong resale value: This is a consideration at any price point—not only high-end—but the key is to reassure that your home maintains its value over time. Location and condition play a big role on a property’s long-term valuation.
8. Don’t overextend yourself just because you’ve been approved for a high mortgage: If you qualify for a $1.5 million home, you may not want to search for a home in that price point. Maintenance expenses are higher for luxury properties, so it’s always best to keep future expenditures in mind for budgeting purposes .
Looking to educate yourself in the high-end real estate market or trying to find your dream luxury home? Contact our CBHarper Global Luxury division—our trustworthy luxury specialists have in-depth knowledge of the market and its trends, will look out for your best interests, and will guide you through the plan you developed early on.
Coldwell Banker D’Ann Harper, REALTORS® can be reached at (210) 483-7581 or firstname.lastname@example.org and has been an affiliate of the Coldwell Banker franchise system for over 30 years.
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