Are You Posh Enough for Luxury Real Estate? |
Posted: October 18, 2019 |
After a few rocky years the high-end and super high-end luxury market is beginning to stabilize. What does that mean? It means that you can still buy a house at a lower price than before but without the fear of that price sinking further. The real estate market goes through periods when it’s good to buy or good to sell. Now is not the best time for selling but a great opportunity for buying. Which is good news for you if you’re looking to move up in the world. What is a Luxury Home?Where does the luxury part come from? The most basic way to define what separates luxury from non-luxury is price per square foot. What determines that price is a lot more subjective. It depends on what high-end buyers expect to get for their money at that particular point in time, but here are some of the main factors: LocationWhat makes a prime location is not only a beautiful view, think overlooking a big city, right on the beach or on top of a very popular hill or mountain, but also how trendy the surroundings and how rich the neighbors. Is the house you want surrounded by equally expensive houses? If it is chances are this is a prime area. QualityIt starts with the construction materials: marble, hardwood, crystal. Your bathroom should look like a spa, your kitchen should look worthy of Michelin star status, bedrooms like in the best hotels and let’s not forget the gym. Your days of sweating with commoners are over, now you do it from the privacy of your own home. Speaking of privacyA luxury home can attract a lot of attention, some of it unwanted, so it should go well beyond the simple alarm system. And the security system shouldn’t be the only cutting-edge feature, everything should be cutting edge, even your toaster. Your home should be a refuge from the stressful life you live in order to afford it. You give your best and deserve nothing less in return. ArchitectureDoes your house come with a story? Who was the architect and how is your house special from an aesthetic point of view? Luxury goes far beyond convenience, it should leave you breathless with every detail, your home should look worthy of a painting. Whether it’s traditional, modern, contemporary or a mix between one or more historical architectural styles, it needs to have style. It’s not just a house for yourself, it’s a house that can potentially sell at a profit. Now that you know what to look for how do you get one?Timing is everything as we already mentioned. When there’s less demand you have the best chances of getting a good price, especially if you’re trying to score a deal beyond what you normally could afford. Winter is a good season for buying a house hunting since you’ll have fewer hunters to compete with. They’ll be busy looking for vacation deals for the holidays and what presents to buy for who. Owners will also be looking to sell a property before the new tax year. Perfect time to sneak in and make your dream a reality. Find out how motivated the seller isIf the house you’re interested in has already been on the market for a few months there might be more wiggle room for negotiating. In this case the real estate agent can be a powerful ally. Use probing questions to find out the seller’s situation. NegotiatingMake your offer as straightforward as possible, it will help you look like a serious buyer. If you are able to offer a larger deposit when signing the contract, this can go a long way in locking a deal. You need to take care of the financial aspect ahead of time to allow for the speed with which these transactions happen. Foreclosure listingsBuying a foreclosure can be the deal of a lifetime but you need to seek the counsel of an attorney or a real estate agent that is familiar with this market. You can find foreclosed properties in multiple-listing service (MLS) periodicals and websites, in local newspapers, bank offices or through real estate searches. By now there are dedicated services to help you find the best opportunities. When using this strategy it would be wise to bid on several properties at once since you’ll have a lot more competition from investors and flip professionals. Don’t get discouraged by deals falling through, it’s quite common on this market. A word of caution: Buying a foreclosed property can mean major repairs, emotional moments with the previous owners, hidden costs in back taxes and lot of paperwork. Luxury real estate agentsInvesting in a luxury property is by no means a decision you should take lately. You need all the help you can get and it’s important to get that help from people who know what they’re doing and have your best interests in mind. A real estate agent can significantly ease the process and there are a few things you should look for when choosing one. You can ask for referrals or look for them online. Check for how much experience they have in the type of property you are looking for, what their reputation is and how successful they are. After you narrowed it down meet your top choices in person to make sure there is a connection and this is someone you can trust and work with. It’s your money in the end. Buying a luxury home is in no way easier than buying a regular home but with the current economical changes and the state of the market, the time is ripe to get the home you picture yourself in when you’re daydreaming or turn a profit in a few years. This article has hopefully stirred your curiosity and given you a starting point when it comes to choosing whether this segment of the real estate market is the right choice for you and the future you want for yourself.
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