For those looking to buy a luxury home, know that the process can be different in many aspects than purchasing an average property. Here are five tips for buying luxury property that you may want to consider before you start your search.
Luxury Home Realtors Are A Must
It is always recommended for a buyer to work with a realtor, as realtors know the realities of the market in every neighborhood. However, most realtors work with mid-range priced homes, and may not be familiar with luxury properties. A realtor that specializes in those high end homes will be able to guide you to an appropriate price (so you don’t pay too much, or offer too low and lose to competition). Some luxury properties have no easy comparables to determine an average offer price, so the knowledge and experience of a luxury home realtor can aid immeasurably in your search and offer process.
Fewer Open Houses
Many luxury homes won’t have open houses and will only be available by appointment, which a realtor arranges. Some won’t be on the market at all at first, but luxury realtors will have contacts among other luxury realtors and so can learn of available properties and get you in to see them before someone not working with a realtor.
Bigger homes means more time needed to look through them. Often they will have certain amenities that may inquire a specialized inspector. Since the price you offered depended on the viability and working order of the entire property, spend the time and money to investigate it thoroughly.
The Photos Don’t Tell The Whole Story
Truly high end properties will have lots of privacy, as they can often belong to important people who want to be hidden from plain view from the street. Because of this, even the most talented photographer may not be able to capture a good angle of the outside of what could be a gorgeous house. If it is the right neighborhood for you and the square footage is what you wanted, have your realtor make an appointment to see the place anyway. You may discover it is exactly what you wanted.
Cash Vs. Financing
Only about 31 percent of home buyers pay cash for a luxury home, and it’s a myth that paying cash always gives you a leg up in negotiating. As long as your price is fair and you have pre-approval documents from your mortgage lender, a luxury seller may want your offer instead of a lower one by a cash buyer. Also be aware that down payments for luxury homes tend to be around 30 percent.
Are you interested in a luxury property in the Nashville area? We’re here to help. Give us a call at 615.550.5565!