Shopping for a luxury home is a more involved process than looking for a traditional home. Higher prices and lower availability make good planning essential to finding the home of your dreams. Get your search started with these six tips for luxury home buying success.
Look in the right places
Luxury homes are not usually advertised on the MLS to protect the privacy of the seller. So if you’re looking for a high-end home, find a realtor who knows the luxury housing market in your area. They will have the inside track on properties through their personal connections.
Don’t rely on pictures alone
While it’s always good to visit a house before you buy, Ronald Phipps of Phipps Realty says you shouldn’t pass up a property because pictures of the home’s exterior don’t catch your eye. “Many large homes aren’t photogenic that way and you have to see them in person to appreciate,” notes Phipps.
Research the area
The community around a home you’re looking at might be quiet now, but you could be surprised by a new development going up nearby after purchase if you don’t research the area first. New buildings, road construction, or other development could ruin the relaxing atmosphere or seriously hinder your views.
Detail your finances
Buying a luxury home will bring more scrutiny from the bank. And because high-earning individuals often shelter their money, it can be hard to show proof of your full income. Keeping careful documentation of your finances will make it easier for lenders to verify you have the funds to buy your dream home.
Secure a loan
Get preapproved for a home loan before you start the buying process. Depending on the amount you’re borrowing, you may need a Jumbo Mortgage Loan. Jumbo loans require banks to keep them on their books, so there is a more strict requirement for credit rating, borrower asset profile, and down payment. Knowing this up front will help eliminate problems when it comes time for putting an offer in.
Starting your luxury home purchase with some advanced planning will make it easier to find exactly the home you want. When searching for a luxury home, focus on the amenities, location, and price more than exterior pictures. If it fits your needs, tour it in person, research the area, and get pre-approved for a loan. Learn more about buying luxury houses by contacting realtors Helen and Brad Miller at 650-400-1317 or visiting their website at www.helenandbradhomes.com.