Homeownership is a dream of many, but buying a luxury home can be a lifetime goal that you work hard to finally get to with the help of savings, investing, and buying during the right market conditions. Here are some recommendations to help you prepare for the process to purchase your dream luxury home in today's market.
1. Understand the Market
As you go into searching out a luxury home for your next purchase, you need to consider the luxury home market and how it is a bit different from the market for other homes. A luxury seller is not always going to list the home on the MLS (multiple listing service) and may keep the listing private with a real estate agent to show only to qualified buyers. If this is the case, you will want to hire a real estate agent who specializes in luxury real estate so they can connect you with properties that are for sale that match your criteria.
Luxury real estate also does not usually set up open house days to create interest in the property. For this reason, be ready to schedule a private showing to see a luxury home, which your real estate agent can set up and accompany you through the home for a viewing. And if you are searching for luxury homes that are for sale in your area, don't plan to make a surprise visit to scout out the exterior of the home and its street, as you may look suspicious and get the police called on your snooping around.
2. Prepare For the Purchase
Another detail within the process to purchase a luxury home is financing, which is essential in securing the home that you want. Before you start shopping for a luxury home, know how much you can afford and how much you can pre-qualify through your mortgage bank. A luxury home seller is going to want to make sure you are a serious buyer so plan on providing them with proof of your financing or funds in addition to a mortgage loan.
If you have all cash for the purchase, the seller is going to want to see proof of the funds by providing them with copies of your bank statements, investment accounts, or other sources to prove you can purchase the home. If you are looking to ask for the seller's help in financing part of your down payment as a second mortgage, be sure your bank is aware of this when you get pre-qualified so your purchase does not fall through at the last minute.
For more insight, contact companies like Anne-Britt Ostlund: Mountain Rose Realty.