Buying a luxury home is a big deal. You are investing a lot of time and money in your home so you should be as prepared as possible. Having knowledge of the market you are navigating is vital in finding the right home. We’ve compiled a list of basic facts you should know to help you prepare for the search.
- It’s a perfect time to buy– Seriously. When looking at the real estate in general the high-end market has seen a major recovery in sales, there is certainly no shortage of wonderful buying opportunities. So many in fact, that major news sources have been publishing articles discussing it. Equally advantageous are the low interest rates, which are exceptionally low for even jumbo loans
- If you’re trading up, sell low, and buy even lower– This means that even if you wind up selling your home for less than it’s worth, you’ll still come out on top. The big discount on your home sale will be much easier to stomach once you realize how low you’re new home is selling for. Add incredibly low interest rates to the equation and the option of selling low doesn’t sound so difficult. And don’t worry about whether is a buyer’s or seller’s market, instead get a handle on what’s happening currently in your target city/neighborhood and price range.
- You’re not the only buyer on the market– Currently, any can purchase a high end home for the fraction of what is cost only a few years ago, and this attracts consumers worldwide. The U.S real estate market has never experienced so much interest from international buyers in the past. Keep in mind that multiple offers do happen. Despite the fact that there are many homes for sale, really great properties do get noticed. When a property is prepared and priced on the market it will undoubtedly draw multiple offers and that’s often uprising to buyers.
- Don’t expect all sellers to be desperate– The luxury real estate market is a little different than other real estate markets. Distressed sales do not constitute all homes in the market; they are only part of the market. Don’t be quick to take a stern stance in negotiations, sometimes that’s not the best strategy. In some cases patience will yield a more desirable outcome. It’s important to give buyers enough time to consider your offer.
- Cash will change the equation– This is one of the biggest transformations of the real estate market in the past five years, more and more luxury buyers are requesting a cash deal. This isn’t because of a lack of available loans, but rather buyers realize they can settle on a better deal with cash because there are less complications and sellers are more likely to accept a lower price.