Nothing says that you've "arrived" quite like the prospect of purchasing your first luxury home. Even if you have the income and assets to make such a purchase, however, there are still smarter and less-smart ways to buy luxury homes. Here are three clever approaches to the problem that can get you into your dream home as easily and cost-effectively as possible.
1. Choose the Most Experienced and Well-Connected Realtor
Most realtors can handle the average home search and sale as a matter of routine — but luxury homes pose some special challenges. For one thing, their owners frequently sell them "off the grid," relying on personal networking as opposed to MLS listings to make the transaction more discreet and effective. A younger, less-experienced realtor simply isn't likely to have the depth of knowledge or the business connections to hear about these transactions and manage them with the necessary aplomb. Make sure that the realtor you select leads your local real estate community in terms of skill and experience, including specific experience in the management of luxury home purchases.
2. Look for Buyers in Distress
Not all luxury homes are owned by individuals currently in a position to own them. Financial or economic reversals may force some of these folks to put their properties on the market — and not always at the most profitable asking prices. Do whatever detective work you can to find out exactly why the owner might be selling the home. Look at homes that have been sitting on the market for 3 months or more, an indication that the seller may accept a reduced offer. Time your purchase to coincide with a traditional slow season in the real estate market (such as a cold winter) or with the end of the fiscal year (a time when homeowners may be scrambling to reduce their taxable property assets).
3. Get Creative With Your Payment and Financing Strategies
How you propose to buy a luxury home can have a major impact on your success in securing that sale. For instance, the simpler and more clear-cut your offer, the more easily it can go through in a hurry — which may be exactly what the seller wants. A shorter timeline for the proposed sale will also appeal to distressed sellers. you might even be able to reduce your upfront costs by arranging for the seller to finance part of the sale directly, on a peer-to-peer basis, instead of trying to run 100 percent of the financing through a bank loan.
You can buy a luxury home without endangering your hard-earned wealth as long as you go about it as intelligently as possible. Take the first step by contacting an expert realtor and asking about single family homes for sale!Share
21 January 2020
Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.