Considerations When Purchasing a Luxury Home.
The following list is considerations I think every luxury home buyer should think about before or when purchasing their luxury property.
Ø Hire a local real estate attorney or title company.
Ø Find a real estate broker to work for YOU. One who is an expert in the local real estate market?
Ø Multiple offers still happen. Even though there are a large number of homes for sale, really good inventory gets noticed. “When a property is presented and priced for the current market, it will definitely attract multiple offers and that’s very surprising to buyers.
Ø Not all sellers are motivated. Not all home sales are distressed. Many luxury properties are normal sales.
Ø Strong negotiations don’t always pay off. Sometimes patience brings a better deal. It is imperative to give buyers adequate time to thoughtfully consider your offer. Don’t take any personal. Realize that this is their pride and joy they are selling. Many great memories and events took place at this property. Sometimes money alone doesn’t get it. The peaces of mind that their home is going to individuals who will take care of it with appreciation get the deal done.
Ø Cash is still the top choice for strong negotiations. Risks are lower that the deal will go “south”. There are no contingencies like appraisal or financing contingencies.
Ø Study the current market. What are the luxury properties selling for in your area? How long are they on the market? These are factors to consider when you find your target.
Ø Get together with your family. Make a list of all your needs and wants. How many bedrooms will you need? What home style would you like? Are you going to need a basement or garage? How much land will you need? List your favorite luxury communities.
Ø Are you sure you really to move? If you are considering downsizing, you may want to take more time to make your decision. Give yourself time to envision how you would live in a smaller home; how much space you need for guests and returning children; and, most importantly, if the time is right.
Ø Do your own homework. Scope out the market online. There is no better place to begin than with local real estate websites like www.fredericksburgagent.com. How much are your target homes selling for and where?
Ø Choose your broker carefully... Find the local expert with experience as a luxury real estate agent. Ask about education, special training, designations and experience. What was their regional standing for sales last year? I placed 7th in the entire Mid-Atlantic Region.
Ø A trusted relationship with an expert agent is a must. Communication is the key. This will put you on track to be one of the first to know about price reductions and properties that are ready to come on the market. Hot searches are great tools.
Ø Ask your agent how they plan to represent you. Hiring a buyer’s agent is a contractual agreement. Be absolutely sure the agent is the best for this particular transaction. I have other agents that work with me that specialize in buyer representation.
Ø Be prepared to show a proof of funds or financing pre-approval. Luxury homeowners want to know the buyer is serious and ready when they tour their home.
Ø Location is the key. Will this work for you? Are there factors with the location that will keep demand high? You may want to sell one day.
Ø Plan for life changes. How’s your health? Are stairs going to cause you problems? Can you maintain a large landscaped yard?
Ø Rely on your Realtor to determine the value and offer price. They should be able to determine the true approximate market value.
Ø Ask your agent to do a Comparative Market Analysis of the target property. This will be great information when considering your offer price and future negotiations.
Ø Take into consideration all your monthly expenses. How much fuel will you use. How much will your utilities cost per month. How much will your taxes and insurance cost roughly per month? Be prepared for worst, face best.
Ø Look for rare or distinctive properties. These may be diamonds in the rough. The home may need some work, but the lot is deep waterfront. Look past obstacles with a clear mind and visualize your finished décor.
Ø I hope these tips will assist you in finding your perfect luxury dream home.
Century 21 Adventure – Tom Smith, Realtor
10601 Courthouse Road
Fredericksburg, VA. 22407
Fredericksburg Homes for Sale