10 Tips for Buying Luxury Property for Sale
Looking at a luxury property for sale can be stressful. There’s a lot to consider, and the process isn’t always easy. Knowledge and planning are key, as is understanding the process and having a plan of attack.
A great relationship with realtors you can trust is also important. It will be your decision, so you need to consider all factors without feeling pressured. Taking your time and knowing what you want will save you a headache down the road.
Below we have a guide with ten tips for what to look for when buying luxury properties on sale.
1. Don’t Only Rely on What’s Listed Online
When it comes to any luxury property for sale, don’t only rely on what’s listed online. A little-known secret is that many of the best villas and homes for sale are often kept hush-hush. This is usually done to protect a seller’s privacy, which makes sense.
For this reason, you’ll need to go beyond what’s listed online if you want to find the crème de la crème. Private connections of realtors who specialize in luxury properties are your best bet.
There’s an entire world of incredible listings waiting beneath the surface.
2. Know What You Want
Before you buy property of any type, consider what you want. Luxury homes and villas come in various sizes, locations, and aesthetics. If this is going to be your home for the foreseeable future, you need to consider how it looks and what you need.
Going property hunting without a clear plan is a common rookie mistake. It’s easy to get impressed and overwhelmed by the variety on offer. Draw up a list of the things you must have first.
Think about what sort of floor plan you like or your kitchen preferences. Bathrooms and entertainment spaces are big too. Style and luxury are one thing, but functionality and personal taste are things only you can choose.
3. See It in Person If You Can, or Get a Virtual Tour
A home is a huge investment, so it’s not something you should choose remotely. Photos can be misleading, and descriptions can sometimes lie. If possible, you should arrange for an in-person showing of the property.
Have a local agent you trust to show you around and answer any questions you have. Tell them to point the camera at areas of concern for you, so you have an idea before you buy.
4. Find an Expert on the Area
Buying a property is about more than only the physical buildings. The neighborhood you find yourself in, and your neighbors specifically are major factors. If you’re going to live there, you should know what’s around you and where things are.
Find a real estate agent who is expert in the area you’re looking at. Ask them about the surrounding areas, such as attractions, good places to eat, and how the traffic is. Don’t only focus on the glamorous aspects and the more practical ones.
You don’t want to live in a gorgeous mansion next to a landfill or far away from the things you need. “Views of the ocean” won’t mean much if it’s on the other side of the city.
5. Consider the Property Type
You should also consider the type of luxury property you want and what’s available in the areas you like. You can find a mansion or villa for sale or a gorgeous penthouse suite. The question is, do you want large-scale home living, or are you content with a super-luxurious apartment lifestyle?
Knowing the answer to this question in advance will save you time. It will also let your real estate agent focus their energy on finding the best fit for you. In line with this, you should also think about if this property will be a long-term home or an investment or rental property.
6. Plan for the Future
No one can see the future, but you have to try and plan for it regardless. When you look around the area and get the down-low from an expert, you should also consider the direction your area is likely to go. Is it on the rise, in terms of popularity and value, or the reverse?
This is especially important if choosing a property for its remoteness or tranquility. If the market looks hot or ready to heat up soon, you might have more neighbors than you bargained for in the next 5-10 years. It’s a fact that cities sprawl out and soon incorporate their surrounding areas.
This is something to consider if you don’t like the hustle and bustle.
7. Consider Every Option and Don’t Rush
One of the biggest mistakes people make when looking at a property for sale is rushing to get things done. People are often busy and don’t like the arduous process of property hunting. A real estate agent might show them 5 or 6 properties, and the client already feels ready or pressured to pick.
This is a mistake. Take your time and weigh all of your options. See and explore as many properties as you need to before deciding.
You’re the one who will live in that space and use your hard-earned money to get it. You should make your final decision on your own time, at your own pace, without feeling rushed.
8. Look Into Compromises But Factor Them In
This might not seem like a useful tip, but it’s a realistic one. Of course, you want to find the perfect home, but sometimes perfection doesn’t exist. There are times when you may need to accept compromises or sacrifices.
Your future dream property might not have the shower you like, or it might not have an outdoor sauna. These could be inconveniences, but they shouldn’t stop you from considering a property.
Remember that when you move in, you’ll be making this place home too. You’ll bring your own furniture and artistic aesthetics. You might even repaint some of the walls if you like a different color better.
In essence, you should pick from homes that resemble what you want and need, but keep an open mind for compromise. Some things can always get added or replaced later.
9. Prepare for a Financial Negotiation
This should come as no surprise to people looking to buy property, but there’s always room for negotiation. Homes rarely close for their listed prices, whether luxury or not. Sometimes things turn into a bidding war and the final price skyrockets.
Homes can go for a little under the listed price if you negotiate for it. Having a good relationship with an honest real estate agent is crucial here.
Be prepared to pay more than you’d like for a dream property, but know that there’s almost always wiggle room. It’s a fine balance you’ll have to find, but it’s something to consider early on.
10. Don’t Forget About Title Insurance
Before you close a deal on any luxury property, do yourself a favor and look into title insurance. After you close the deal, a title search will get ordered, usually by your mortgage lender or the bank. They’ll be on the lookout for any title defects that you may not have been aware of.
These can range from costing you extra money after the fact, to even contesting your right to own the property in the first place. There are three terms to know when it comes to these potential issues.
These are liens, easements, and encumbrances. Liens are often put on a property by the taxman, a lender, or the developer if one of those parties hasn’t gotten paid yet. Without title insurance, you could be liable for the previous owner’s debts.
An easement happens when another party has partial or full rights to use your property. The most common use case for this is if your property sits on utility lines that a company needs to access. A municipal water company, for example, might need to get to the pipes in your yard.
You also have restrictions on landscaping and future building. Encumbrances include these HOA restrictions, leaseholder rights, and zoning laws. Looking into these issues and title insurance is something you should do ASAP.
Luxury Property for Sale
There’s a lot to consider when looking into a luxury property for sale. You need to know what you want and what to expect before you go hunting or make a decision. It helps to have good real estate agents on your side to help.