From penthouse suites with sweeping views of city skylines to a grand estate in the country, options for luxury living vary widely by market. Generally, luxury homes start at approximately $1 million in secondary markets and $5 million for top markets. If you’re looking for your dream luxury home today, here are the steps to guide you through your investment process:
Step 1: Learn the Search Process
When buying your new luxury home, buyers look for explicit conveniences and highlights in a luxury property. The best horizon views, direct water access for the 40-foot yacht, or a secluded mansion in the country are all wishes the right luxury property and location can fulfill! Buyers with higher budgets in the multimillion range generally look for more specifics with what’s included in their home and less restricted on budget. Calgary homes helps to find the their new home, many high-end properties aren’t listed on search engines, so you’ll need to broaden your search!
Consider these search tips:
- Highly considered a recommended realtor or broker with a specialty in the area’s high-end market.
- Find an agent with experience in the local market that can advise you on all amenities near and far, including schools, neighborhoods, and daily conveniences.
- Zero in on your top picks by touring the properties in person (Many homeowners with high-end properties are more private on the photos they share with the public)
Step 2: Evaluate Your Top Picks
Assessing an extravagant home is more complicated than an average home. As per Real estate professionals, components, for example, the home’s particular highlights and ongoing rebuilding, bear a more considerable weight than lower-end homes.
While working with an agent, consider these tips:
- Schedule a second tour of the property.
- Take your time to see a large square footage luxury home that can review many things like construction methods, highlights throughout the house, the neighborhood highlights, work security, etc.
- Speak to your realtor about any disclosures. Example: Any underground tanks, Sewer Lines, etc.
- Thoroughly check comparable properties by obtaining pricing information.
Step 3: Financing
The present tight loaning limitations haven’t affected today’s high-end market as many luxury buyers aren’t connected to the subprime markets. Larger banks usually lend large mortgages. Today, many lenders require at least 15 percent down, but in many cases, buyers are putting down 35 to 50 percent in today’s hot market.
Consider this advice from the professionals:
- Prepare any information required
- Bank Statements
- Tax Returns
- W-2s
- Financial bank statements
- Have your mortgage broker, loan lender, or banker obtain your financing approval before you begin your home search early on
- Consider attaching a pre-qualify letter along with any submitted offers
- Expect a longer financial approval process
Step 4: Offer Day
After searching the flooded market and finding your new dream home, it’s time to decide on an appropriate offer to put down. Making an offer isn’t as easy as it looks; in some cases, sellers are in no rush to sell properties and will hold off until the right one comes along.
- Have your agent research similar properties in the form of comparable prices for active, pending, and sold properties from their real estate search engine.
Step 5: Don’t Forget the Details
Buying a luxury home includes a few more professionals than a lawyer. To find a trusted tax and financial planner, bankers, and attorneys, these professionals will directly be involved in the transaction.
- Never skip the inspection process. From the potentially hazardous to the structural, you always want to know what you are buying. Make sure inspections and repairs are made promptly.
- Though not essential everywhere, consider an excellent local real estate attorney if it can save any future headaches.
- Be prepared for extra closing costs like transfer tax, attorney’s fees, title insurance, etc. It’s a good idea to have this money in the bank on the day of closing.