In the market for a high-end home? The luxury real estate search and purchase process can look quite different from other real estate transactions – and understanding those differences can put you in a position of power. Whether you’re on the lookout for a stellar property to fill out your portfolio, a new vacation home, or a luxe condo in the city, you’ll want to keep these factors in mind:
Search with Care
Most traditional homebuyers turn to the internet first when they begin their search – but many luxury properties never make it onto a multiple listing service (MLS), Zillow, Realtor.com, or any of the other top real estate sites. In many cases, interest is generated via word of mouth, thanks to the realtor’s or property owner’s personal connections.
Working with a broker who’s familiar with the luxury real estate market in your area can give you instant access to the top luxury properties hitting the market, sometimes before they’re even listed. They’ll also have insight on properties that might go up for auction in the near future. In other cases, your broker might be able to refer you to a more specialized search system for the specific types of luxury properties you’re targeting, such as multi-home estates or high-end apartments.
Consider Photos with Discretion
Every photo of a luxury property should be taken with a grain of salt. Some professional photographers and videographers go out of their way to enhance photos so that rooms appear larger, landscapes look more expansive, and more. In other cases, subpar photos might not do a home justice. Many luxury estates must be visited to get an idea of their style, flow, and personality. Any photos taken of these properties could appear underwhelming on the surface. Take the time to visit in person, even if you’re skeptical. You may just find a hidden gem!
Work with Local Experts
Whenever possible, find the rock stars of your industry that have experience in the specific neighborhood where you’re buying. An excellent lawyer, broker, appraiser, and title company with extensive local knowledge can all be invaluable allies when purchasing a high-end property. Because some luxury markets consist of multiple micro-neighborhoods, each of which has different pricing histories and factors to consider, having local professionals on your side is a must. This is true whether you’re considering making an offer on a conventional sale or bidding on a property at a luxury real estate auction.
Be Prepared to Prove Your Ability to Purchase
This is fairly standard when viewing or requesting information on a piece of luxury real estate. Don’t be offended by the request, but be prepared to have your banker or mortgage broker tell sellers that you have the ability to purchase a home in the price range of the one you’re considering. However, you shouldn’t produce a preapproval letter or a specific dollar amount you have available for the purchase; you don’t have to undermine your negotiation power to demonstrate your ability to buy the property.
Whether you’re searching for your forever home or a second property in your favorite vacation destination, it’s crucial to do your research and be diligent throughout the entire process. That way, you can secure the luxury home you’ve always dreamed of.
