We all have our dream properties, and we would do anything to get them. But anyone who has bought a luxury home before will tell you that it isn’t as simple as being able to afford the deposit. Here are a few things to know and to look out for when you are buying a luxury property.
Be Prepared For Long Negotiations
Talk to the seller or their representative as soon as possible. Find out what they are looking for and what they will settle for. Many luxury homes have sentimental value to the owner. Don’t waste time talking to someone who doesn’t want to sell.
Set a limit on the amount of money that you are willing to spend. The seller may want to take advantage of the state of the luxury housing market. Walk away if the price creeps up after the initial agreement. An agent with experience in luxury properties will be an important asset.
You Need To See The Property In Person
Insist on an in-person viewing as soon as possible. Owners of luxury homes can be reluctant to share too much of their homes on listing websites. They can be wary of letting too many people in to view the property. If they won’t accommodate an in-person viewing, they may not be serious about selling or they may be hiding something.
Find The Right Loan
Talk to your financial advisor about home loan options for a luxury property. If you do not have the asking price in your account right now, consider a jumbo loan. A jumbo loan can offer you more than the set limit of the Federal Housing Finance Agency. You will need to make a sizeable deposit, but by doing so you will be getting a no PMI mortgage. You will also need to prove your debt-to-income ratio.
It May Be A Fixer-Upper
Hire an independent surveyor to find out the exact state of the property. Older homes are especially prone to expensive issues with heating and pipes. Luxury high rises come with their own unique problems. Simple issues such as maintenance and mold inspection can be neglected in very large properties. Use any problems to your advantage when you discuss the price.
What Do You Want It For?
Think carefully about how you will use this property. If it is a holiday home, you will need to budget for staff to take care of it during your absence. If it will be your primary residence, there may be significant costs involved in making it comfortable. Will you be looking to sell in a few years’ time? If so, invest in updates and repairs.