When we walk around an elite neighborhood comprising of country estates, elegant mansions, and chic penthouse condominiums, the dream of owning one such real estate is rekindled at the bottom of our minds. Like me, you must also have asked a question to your mind – who are the people who buy these stylish homes? What are their income and lifestyle profiles? Let us explore all these questions in this article, and provide you some useful tips for buying a luxury home in case you decide to buy one.
The profile of a luxury home buyer, as discovered by a survey conducted by a banker is as follows:
• 31% pay full cash at the time of purchasing the house.
• The predominant buyers of luxury homes are top executives of big corporate houses.
• 67% of the buyers belong to the “baby boom” generation (between ages 35 and 55)
• 88% of the luxury home owners are married.
• If you think about luxury home amenities, then designer kitchens come up as the first priority area.
• 89% of the luxury home buyers want their dream home to contain a minimum of four to five rooms.
• Nearly half of the luxury homes sold have an area between 4000 to 6000 square feet.
Let me now provide you some useful tips that might come to your help if you plan to buy your own luxury home.
When you are targeting a new luxury house, talk to your potential neighbors first. Try to dig out information from them about the problems they are facing. Simultaneously, also ask them about the amenities they are enjoying in their neighborhood. You also need to possess a copy of the current homeowner’s association rules, regulations and guidelines. The association rules of upscale neighborhoods generally have strict guidelines such as, home color, and the number of cars that can be parked in your driveway.
You need to check out the local zoning laws as well. It is a very important consideration that your home should be protected from township developments such as creation of a new super market, or a commercial office building. In a nutshell, try to gather as much information as possible about your neighborhood. This will enable you to quickly adapt to your new neighborhood.
While comparing two or more luxury homes, do not depend on their photos only. There are many beautiful and large homes that are not that photogenic and you need to see them in person to admire.
You need to have a good agent who can assist you in the purchase of your dream luxury home. The agent should be familiar with the area of your target home. If you are eyeing a high-end property, then you might face certain restrictions to get access to them. Your agent can be the mediator in those cases. As the stake in a luxury house is quite high, your agent should be thorough and professional enough to seal the deal in your favor. The agent should be able to negotiate with financial institutions and lenders to make the home financing process a little easier for you.
Sometimes, bank can provide you some useful information about the luxury homes that are up for sale. If you have a bank that has attached a relation executive to you, approach him or her. They usually have a portfolio ready for luxury home buyers. Learn from them the difference between a pre-approval letter and a pre-qualification letter. To obtain finance from the bank, you need to keep all your financial documents up and handy. In this niche, high-end market, you should be able to show your proof of income to the bank.
To become safe and secure after the purchase, you need to get title insurance for the property that you have bought. The title insurance will safeguard you from unwarranted problems that you have forgotten about. Make sure that you look at the exceptions page of the insurance papers.
You may need to redecorate your luxury home before you move in. You will save a lot of your headaches and multiply your happy moments after relocation to your new home. For example, you may want to opt for carpet flooring instead of hardwood; or paint the interiors of your house to a different color; or change your garden landscape to suit your taste. Contact with your interior decorator well in advance and roll out the renovation process.
Lastly, and most importantly, you need to evaluate your financial position before you take the plunge. You need to sit down with your realtor and figure out how much you can afford. Your realtor will tell you about every cost involved, including interest, taxes etc. Next, you need to sit down with the bank representatives who are willing to lend you. Watch on the repayment interest rate. Your realtor should act as a liaison between you and your banker. Take advantage of your realtor’s experience in this field. A luxury home in a posh locality can cost up to millions of dollars. Therefore, make an honest assessment about your creditworthiness before you jump to any decisions.