Purchasing a luxury home is a dream for many people. Luxury homes offer the best in terms of location, architecture, and materials. These homes also come at premium price points. Luxury homes for sale may not always be listed publicly. Financing a luxury home can also be different from purchasing a non-luxury home. Here are three tips for first-time luxury home buyers.
Hire A Local Real Estate Agent
Some people who are purchasing a luxury home for the first time may be reluctant to hire a real estate agent. However, local real estate agents can be invaluable when it comes to finding a home in a luxury market. Those who are selling a luxury home often value their privacy and do not want to show their property to anyone who is not a serious buyer. For this reason, many luxury homes are often unlisted. A local real estate agent who is tapped in to the luxury market can use their connections in order to find homes that are for sale but aren't listed.
Getting financing for a luxury home can take a little longer than financing for a less expensive property. It can take anywhere from 45 to 60 days to secure a loan. Higher down payments are also common when it comes to luxury properties. In fact, 30 to 50 percent for a down payment is common for luxury properties. This can work out to be a large amount considering that luxury home prices start anywhere from $1 million to $5 million depending on the market. Having a large down payment and getting pre-approved for a loan are something that first-time luxury home buyers need to consider doing.
Research Maintenance And Upkeep
One common mistake that first-time luxury home buyers make is failing to consider the cost of maintenance and upkeep for a luxury property. The cost of landscaping, repairs, and other upkeep can easily exceed what the homeowner has budgeted for. Luxury properties also have higher property taxes and insurance costs as well. Researching these costs beforehand is something that should be done before purchasing a luxury property. Properties on the water are especially known for high upkeep costs.
Purchasing a luxury home is a major financial commitment. For first-time luxury homeowners, the process can be overwhelming. Hiring a local real estate agent with connections in the luxury market can help first-time buyers find the right property. Financing for a luxury property may also take more time and require a large down payment. Maintenance and upkeep costs should also be factored in while searching for a luxury home.