10 Luxury Home Buying Tips you Need to Know
Tips for Buying a Luxury Home
Do you want to buy a luxury home? Here are ten great luxury home-buying tips that everyone should know!
Whether you're shopping for a mansion overlooking the green on the 16th hole, a waterfront home with breathtaking views, or a penthouse loft in the heart of downtown, you'll want to do your homework on the luxury home-buying process.
As a buyer shopping for high-end real estate, some tips and strategies are similar and different to your typical home-buying process. This article will give eight tips to help you purchase a magnificent estate at a great price, avoiding common mistakes buyers make. In this article, you will learn:
- How to buy a luxury home
- Tips to help with the luxury buying process
- Common mistakes buyers make
- How high-end real estate purchases are different
- Ways to avoid buyer's remorse
- What to expect once your offer is accepted
- How to find the perfect luxury home for sale
Here are 10 Great Luxury Home Buying Tips to Know!
Chapters
1. Understand the Real Estate Buying Process
If you're buying a mega-home, it's certain to come with a high price and all the amenities one would expect in an expensive home. By understanding the buying process, you'll better understand what to expect throughout the process, as well as certain techniques that will help you find the perfect home.
Remember that when you're shopping for a luxury home, the pool of buyers you're competing against is much smaller, which should help lead you to a great home if you can be patient.
Educating yourself before buying a home will save you time, money, and unnecessary headaches. It will also help you find an excellent house vs. making a hasty decision and later feeling a case of buyer's remorse.
You'll want to ensure you clearly understand what you're looking for in a top-end home. Discussing your priorities with your significant other will be important as you look for top-of-the-line locations and amenities for your new house.
One of the most important things you can do before you begin searching is to figure out what you want in a luxury home. Do you prefer buying a new construction or an existing home?
Your realtor can help set the upfront expectation that having a plan before looking at all the luxury homes for sale will help you execute at a higher level when it comes to purchasing. They can also help you find great neighborhoods.
2. Know Your Local Neighborhoods
Knowing what neighborhoods you want to purchase a house in will be a part of the plan your realtor will help you put together. Location is the most important factor when searching for a home, and certainly an important one when you plan to spend a lot of money on it. What type of amenities are you looking for in your location? Whether shopping for large properties on the golf course, waterfront, or in the heart of downtown, you'll want to understand area trends and future plans. You'll want to consider certain neighborhood factors before purchasing your house.
If you're buying an excellent waterfront property, you don't want to buy the home on the beach only to learn that they are building another house that will block your view. You need to be careful of this when searching for luxury homes because your resale opportunity would be hurt. You want to play far more defense than offense when looking at luxury homes for sale, and what I mean by defense is protecting your investment.
Here in Raleigh, when we work with affluent buyers searching for luxury homes for sale, we first find great neighborhoods. Neighborhoods in Cary, Apex, and Holly Springs offer great top-of-the-line real estate options. In Raleigh, you'll find great penthouse condos in the heart of downtown, historic mansions in the Glenwood area and Oakwood district of downtown Raleigh, and incredible country club homes.
By understanding the local trends in the neighborhood, the future plans for that location, and the type of local amenities you're searching for, you will have a much better understanding of what location is best for your luxury home.
3. Know Your Priorities in a Home
It's common for mansions to include top-of-the-line amenities such as:
- Incredible location
- Breathtaking views
- Movie Theaters/Entertainment rooms
- Home Gym
- Land and privacy
- Great entertaining features
- Top-of-the-line safety and security
- 'Intelligent' home appliances
- The best quality homes
- Great backyards
Knowing your priorities in a luxury home will help you find an estate you will love. There are often different interests for luxury buyers that lead to different sets of priorities. If buying luxury real estate here in Raleigh, I would want a great home gym, a basketball court, and an awesome backyard with a great patio and pool. Maybe someone else wants a movie theatre, a wine cellar, and heated floors. What would you want in yours? Surely, there will be differences.
There are some amenities buyers will splurge on. This is why it's important to have a clear list of amenities that are priorities for you and whoever you're living with. Understanding exactly what you're looking for in terms of amenities and what you'd be willing to give up will make the process much easier. You also won't be confused when it comes time to pull the trigger. You want to be 100% confident when you find the perfect place and find one that matches your top priorities.
If you don't know what your favorite amenities are or don't have a good understanding of what your significant other likes, it will lead to confusion. Confusion leads to a higher chance of poor decision-making. So do emotions. When buying luxury real estate, ensure you understand what you want. Keep your emotions at bay; you don't want them to cloud your decision-making process.
This is the same in real estate. Confusion leads to cloudy decision-making. In the real estate market here in Raleigh, there are plenty of nice homes at affordable prices. Many people moving down from the North see these prices and don't realize they're buying high-end real estate.
4. Understand Your Financing Options
Knowing your qualifications is a big part of buying a luxury home. Don't assume that you qualify for a multimillion-dollar estate because a high percentage of people don't. It must also be frugal in line with a tip we discuss later. Will you put down 20% on your home when so many other types of loans are available? Find out what you're comfortable with regarding financing and stick to it.
Your mortgage lender will review the best options for financing your luxury home. Doing your homework on lenders and shopping around for the best deals makes a lot of sense, especially when a fraction of a point will equal tens of thousands of dollars over the course of a mortgage loan.
5. Hire a Top Luxury Realtor
When you're ready to search for a luxury home, you'll want to find a realtor with experience with high-priced real estate and a good understanding of the neighborhood you're interested in. Hiring a strong realtor will help you immensely.
They will provide the most recent trends and help you through luxury home-buying. They can help you find problems with the house you may not have otherwise discovered, and since they are seeing homes all the time, they will have a great understanding of what a good deal looks like.
A great realtor will ensure you stay within your budget and execute according to the plan you developed. Should you start looking outside your budget into a higher price range, you want the type of Real Estate Agent who will bring you back to your initial goals. When buying expensive real estate, you want to work with Real Estate Agents.
6. Patience is a Virtue When Buying Real Estate
When you're buying a high-end estate, you must exercise patience. You don't want to make a hasty decision, especially when you have a large financial obligation. You want to make sure you've done your homework, executed the plan you developed, and that you find the perfect spot. Don't be afraid to miss one or two good ones because that will only allow you to understand exactly what is selling and what isn't. It also allows you to learn what you truly want.
Often, buyers can get caught up with wanting the property that someone else bought before they did and dwell on it. Don't do this. Learn from it. What is it about that home you liked? Is it possible you can find a better one?
Earlier this year, we worked with a client searching for luxury homes in Holly Springs. She found the home she was looking for, and we scheduled a time later in the day to see it. The home was under contract an hour later before we could see it. We continued with our scheduled appointment to see the high-end estate, and my client picked out everything she liked and didn't like.
After trying several more times, my client began to lose hope that she wouldn't find another one like the one she didn't have the opportunity to buy. A couple of months later, we found exactly what she was looking for, even better than the one she had previously seen.
7. Look for Strong Resale Value
When you're shopping for luxury real estate, you'll want to be sure what you buy has a strong resale value. This goes with any home you purchase, not just luxury real estate. You want to ensure that you can easily recover what you pay for the home if you need to sell the home.
Location and condition are two factors that help determine what will make for strong value. Buying a home in a great location is key to ensuring your home keeps its value. Your local Real Estate Agent will be able to help you determine what is a strong option in terms of resale value by analyzing the neighborhood numbers with you.
8. Don't Overextend Just Because You Can
If you qualify for up to a $2.5 million dollar house, we don't advise you to shop for a home worth the same amount. You will want to have a plan in case something goes wrong. Maybe your company goes under, and you lose a salary. Would you be okay in that scenario? Remember, the pool of buyers in the high-end real estate market is much smaller than a home most people can afford.
Ensuring you stay within a budget that makes sense is something your realtor should be able to help you with. The expectation was set from the beginning that you were looking for a home within a certain price range. A trustworthy realtor looking out for your best interests, not your own financial statements, will help you follow through on the plan you developed early on.
9. Look for Timeless Design Features
Finding a beautiful luxury home with timeless appeal and design will ensure a good return on investment in the future if you decide to resell. Paying attention to timeless architectural design and features from high ceilings to open floor plans will ensure that the luxury home will appeal to various future buyers.
10. Consider Maintenance and Upkeep Costs
When buying a luxury home, you agree to a high price tag and high costs for upkeep due to higher-end features and more complex systems. The maintenance of a luxury home is generally more expensive than maintaining a regular home, because of this, it is important to consider these costs to make sure that you can afford it before purchasing.
FAQs
What price point is considered a luxury home?
While it depends on the location, the price point of a luxury home typically starts at $1 million and more.
Are luxury properties a good investment?
Since luxury buyers often pay a premium for exclusive properties, luxury properties can be a secure and long-term investment that does not tend to lose value over time.
Final Thoughts on Buying Luxury Real Estate
Luxury Homes in Raleigh, NC, are only available to a small percentage of Americans because of the high price point. For those who can, you want to take the necessary measures to ensure the property you buy is right. Educating yourself on the high-end real estate buying process, understanding the local neighborhood trends, and knowing exactly what you're looking for will help you find the best luxury estate possible.
When you're ready to buy, pay attention to more than just the location. Contact us today if you are ready to find your dream luxury home.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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