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Originally Posted On: https://segovia.properties/what-to-know-before-buying-a-luxury-home/
52% of home buyers say they use a real estate agent to find their desired property. This is even more important when you’re looking for a luxury home.
What should you know before buying a luxury home? It seems overwhelming to sift through the information and find your dream home, but it doesn’t have to be. Read this guide on what to know before buying a luxury property today!
When finding luxury homes in Scottsdale, AZ, it’s essential to consider the amenities. What amenities are important to you?
Whether it’s a large game room or a full library, establishing them is vital. Or maybe you’d like to buy a luxury home with a wine cellar.
Some necessary amenities might include:
- Great backyards
- Land and privacy
- Nice views
- A spectacular location
- A home gym
- Great entertainment options
- Good-quality homes
- Smart appliances
- Entertainment rooms
- Movie theaters
- And more
Some luxury homes for sale were owned or designed by celebrities. Others might be in a historical style that’s rare and unique. Decide whether a higher price tag is worth it if it comes with prestige.
Find The Right Real Estate Agent
Find a luxury home realtor since they specialize in the homes of your dreams. You’ll also want someone familiar with the area you’re looking in.
They’ll know which homes you’ll be interested in and what deals are happening. The right realtor will also set up showings for you to see the home in person. Realtors can bring the experience necessary to help you make the right decision.
Understanding the Buying Process
When you’d like to find luxury homes in Paradise Valley, AZ, it’s vital to understand the buying process. For example, if you’re buying a mansion, it’s more likely to come with the amenities you’re dreaming about.
The other great part is that competition is much less for luxury homes. This will help prevent you from making snap decisions.
Decide what you’re looking for in your dream home. Go over what’s necessary and nice to have.
Also, consider the location. How far is it from shopping, restaurants, work, and your children’s schools?
You’ll also want to consider whether you’d like an existing home or a new construction. A realtor can help you create a plan and find homes in your ideal location.
Know Your Financing Options
Not everyone can buy a luxury home with cash, so it’s important to identify your options. Decide whether you’ll be placing 20% down, and if not, you’ll need to consider PMI (private mortgage insurance).
Speak with a lender about the loans that are available to you. Come up with an amount that you and your partner are comfortable spending.
A lender will discuss all your financing options. Be sure to shop around for the right lenders.
Once you set a budget that your lender agrees on, stick to it. Never stretch your budget too far and then have to sacrifice quality time doing what you love.
Patience Is Key
It’s important not to make a quick decision; take your time. Since a luxury home is a large financial obligation, it’s important to pick the right home for your needs.
First, find the perfect location, pay attention to the plan that you and your realtor develop, and research the property. Even if you miss a couple of homes in the process, it’s more important to be sure of the home you pick.
If you do miss out on a home, identify what you like/don’t like about the property. This will help you find the ideal location.
Identify Strong Resale Value
Before buying a luxury home, ensure that it has a strong resale value. Then if you do sell the home, you’ll want to find out if you’ll recover what you paid for it.
Pay attention to the condition and location of the home. This will help you decide its value.
Your realtor can also help you decide what strong options you have available. In addition, they can discuss the resale value of each home.
Don’t Only Go By Photos
Photos can lie or not be the best. Professional photos could make a big difference in their appearance.
Larger homes might not show up well in photos. It’s important to walk through the home and see what you like/don’t like. Then when you’re in the space, you can imagine yourself and your family living there.
Check out aerial pictures on Apple Maps or Google Earth. This will allow you to see the home’s appearance and decide if it’s worth pursuing.
Negotiation Is Key
Even with luxury homes, you aren’t expected to pay the full price. You can still negotiate the amount.
Look into comparable homes in the area and how much they sell for. This will help you determine if they’re within your budget. Keep in mind that many sellers will be open to some negotiations.
Financial documentation is key in the luxury industry. Since you probably have an accountant or manager, it might be difficult to show a bank your income. Ask them for reports showing your total income that can be shown to banks.
Don’t forget to ask about title insurance as well. This will ensure that you’re insured against any forgotten problems.
Take a look at the exceptions page of the title insurance process. Again, this should occur before closing.
Consider the Surroundings
Check the surrounding area since there might be building going on in the foreseeable future. If buildings or other homes go up around you, they might obstruct certain views you enjoy. On the other hand, you also don’t want any issues because of construction delays.
Look For Design Features
Check the materials and architectural elements of the design. You want to ensure that the design will still be in style years from now.
This is important if you decide to sell in the future or if there might be that potential. Avoid buying cookie-cutter homes since there’s nothing unique about them. They won’t add value as quickly as a unique home.
Ensure that the luxury house will last for years to come. Pay attention to the materials they use to construct the home, especially newer models. If it’s an older home, you might want to consider different toxins that could have been used in the process.
Opt for properties that have concrete construction. This is a material that tends to degrade slower. Avoid homes that are beautiful but are made with lower-quality materials.
You’ll also need to understand the location if you’re new to it. For example, they might have community meetings and impacts that you’re not familiar/comfortable with.
Check out government meetings and other recordings before buying a home. If you’re a business owner, you might want to avoid a location that has kicked out businesses.
Discuss Upkeep and Maintenance
How big is the yard? Is there a pool?
You’ll want to consider the upkeep and what you’re comfortable doing. For example, while tennis courts and pools are nice, they require more maintenance. And if you don’t perform the maintenance, you’ll need to hire someone who does.
Maintenance on a luxury home will be much different than on a regular home. Speak with others who have luxury homes or realtors to see what to expect.
Consider Open Concepts
Consider an open-concept living space for the living room and kitchen. This will make entertaining easier.
Also, most of your time will be spent in these locations. While it might be tempting to go with a home that has a large dining room, focus more on the rooms you’ll spend the most time in.
For example, how does the master look? You’ll spend a large amount of time sleeping, so it’s essential to have a comfortable room. Don’t get carried away with the size of the room since you’ll spend most of your time sleeping.
Things to Consider Before Buying a Luxury Home
While buying the nicest luxury home might be tempting, it’s important to look at the full picture. So take your time deciding your budget, the ideal location, and must-haves in a home.
Remember not to rush the process. It’s better to miss out on a home than rush and wind up in one that you won’t enjoy.
Are you ready to start searching for luxury homes in Arizona? From Paradise Valley to Scottsdale, we can help you find your dream home. Contact us today to get started!