In The Market For Luxury Real Estate? 3 Preparations To Make Before Shopping

Luxury homes for sale can be vastly different in size, features, and amenities, depending upon where they are located. While the actual term can be defined differently for each prospective buyer, a luxury home is generally one that offers significantly more than the average homes on the market in a specific location. 

For instance, in a small town where 2,000 square foot homes are the norm, a home that is much larger home may be considered to be luxury real estate. Conversely, a $1 million home may not be a luxury home if it is located in an area where the average home several for several times that price. 

Because of these differences in defining luxury real estate, it is important for buyers to be well-prepared before beginning to shop for and view this type of home. 

1. Understand the market

The first step in successfully purchasing luxury real estate in your chosen area is to gain a good understanding of the local market. To do this, begin to carefully observe it well in advance of when you plan to purchase. 

Good ways to do this include signing up for automated searches through your local multiple listing service (MLS) and through individual brokerage sites. Since not all luxury real estate will be publicly listed for sale, it is also wise to take frequent drives through areas that appeal to you, as well as monitoring local classified sites and media. 

2. Prearrange the financials 

Luxury home purchasers who plan to take out a loan to buy should begin the mortgage approval process well in advance of the time they wish to make their offer. A jumbo loan, for example, which is typically a mortgage in excess of at least $453,100, can take significantly longer for approval and processing than a mortgage to buy a more average home. 

Luxury home sellers rarely consider an offer with a financing contingency, so having the financial arrangements in place to purchase is the best plan. Luxury home buyers who have the financial means to pay cash should make sure that they have the liquidity to complete any purchase they make without delay before making an offer. 

3. Work with a reliable agent

In most areas of the country, the luxury home market is smaller and less publicized than lower priced housing. Some listings are even held privately and not available through local marketing channels.

In order to stay informed about the best luxury home listings, buyers should opt to work with a reliable, success-driven real estate professional who specializes in listing and selling luxury homes.