Are you looking to buy a luxury home in Colorado? Although more affluent buyers tend to settle quickly on what their heart desires, I suggest you shop around until you find a desirable home with the right value. The market is not what it once was, although right now is the best time to buy a luxury home, the rules have changed. Colorado has a ton of elegant homes to offer, but make sure when you’re going to buy a home you’re making the following considerations:
- Location is key- An old rule which still applies. However, buyers now need to think long term, often years, possibly decades, into the future. Finishes can always be updated, additions can be made and landscaping redone, but one thing you can never change is location. Learn about the price trends and economy of your target location and discuss them with your realtor.
- Consider resale- During the real estate boom, houses sold quickly for top dollar, however, those days are over, and our advice now is- don’t buy a very large property or an over-specialized estate, which is more expensive or more elaborate than the properties surrounding it.
- Determining value and gauging price in the current market is the biggest challenge for buyers today. Some homes are priced to sell as soon as they hit the market, others have significant price reductions. MLS records are not a great reflection of market prices, so you need to research and visit comparable properties. Ask your agent for an analysis of the number of sales, the sale-price-to-list-price ration, and the number of failed homes in contract, and the time on the market for the last year. A great real estate agent will be able to make these stats available to you and know how to use them to your advantage in negotiations.
- A large discount doesn’t mean a great deal- There are some deals where you will pay full price and get a great value and others where you’ll receive a considerable discount but still pay more than value.
- Look for the hidden gems. Although most buyers want homes which are modern or contemporary, the homes with the best value are the ones which are over stylized with out of date décor. If you are not very well skilled in envisioning a creative changes in décor bring someone along who can supply the vision for you.
Purchasing a luxury home is a big investment. Luckily you are buying at the perfect time in a state with many options, but you still need to take your time and learn about the market. If you’re considering buying a specific type of property, perhaps an equestrian or a waterfront executive mansion, you need to consult with an agent who is experienced in that field. Find the right agent and you should be well on your way to not only buying your next dream home but making a great investment.