When it comes to people buying a home in the high-end market, a common assumption is that they don’t have a budget and are willing to spare no expense on the perfect home. While it’s true on many levels, many luxury homebuyers can still be thrifty and would spend time and effort to negotiate the best deal. In fact, value for money is quite important for some people with plenty to spare. Of course, value for money could mean different things for different people.
If you’re currently on the market for a luxurious home and looking to get the best deal possible, here are some steps you should take:
1. Choose your realtor carefully
There are plenty of realtors and brokers to choose from in the high-end market, but it’s quite difficult to choose one that really puts your best interests at heart. And, of course, there are those, albeit rare, who’d take shortcuts to score a commission (which can be hefty for high-end homes). When deciding on your realtor, be sure to read testimonials from previous clients, conduct thorough interviews, and do some more digging. Combine that with intuition, and you’re sure to find the right realtor to find you your dream home.
2. Is the view or location worth it?
Luxury homes are easy to spot. They are expansive, have well-kept lawns, have multiple bedrooms and bathrooms, have well-appointed rooms and cutting-edge appliances and fixtures, are equipped with gyms, heated pools, and multiple-car garages, to name a few. If you’re already sold on the home, take a few steps back and look at the bigger picture. Is the neighborhood safe? What other amenities are nearby? Does it cater to your family’s needs? Does the view or surrounding landscape justify the price?
3. Set a budget and stick to it
Having a budget can be an important strategy for finding the perfect luxury home. It also helps your realtor narrow down the search. To determine the right budget for you, research listings and locations that match your preferences. To get a more approximate price range, research the house prices in the area you plan to move in. If you have additional amenities you want to have in a home like a heated pool, home theater, and smart home integration, factor those in too. And more importantly, do your best to stick to your budget. Buying a luxury home comes with huge overhead costs, from legal and processing fees to upkeep, taxes, and HOA fees.
4. Hire your own inspector
It’s common practice in real estate to ask for a higher price at the initial stages of negotiation. Before you even negotiating your own price, back it up with a thorough assessment from a professional. Hire your owner inspector to evaluate the nitty-gritty of the property and arrive at a fair selling price. During this phase, it would also be good to get to know the property more. Don’t be afraid the ask the seller why they’re moving, and try to find out if there would be potential issues in the property. Once you get the inspector’s results, bring up the offer with your realtor to start the negotiation process. Don’t be shy to ask for the closing costs, as well.
5. Don’t be afraid to walk away
When buying a home, it’s only natural to arrive at a crossroads. Down the line, you might discover things you don’t like about the home or the location. And even if you’ve shown keen interest in the property and are inches away from signing the contract, don’t hesitate to walk away from the deal if you’re not completely confident about it. More often than not, those little red flags and second thoughts could save you a lot of time, money, and headaches.
6. Explore home loan options
There are plenty of mortgages available for buyers in the high-end market. You can opt for a jumbo loan or pay a sizable down payment for a smaller loan. Whatever you choose, be sure to compare interest rates and payment terms. When choosing a lender, go for the trusted names in the industry or the go-to lender in that specific area, and check their BBB rating.
A luxury home can be considered the pinnacle of a person’s success. If you’ve always dreamed of living in a home with plenty of space and has everything you want and need, you must get the buying process right. After all, it’s a huge investment, so gather the best advisers you have and make sure you spend your hard-earned money on a home that’s truly worth it.