Many consider luxury homes as the pinnacle of success. If you’re looking to cash in on one of these high-end properties in California, here are 5 tips to help you achieve your goal:
- Choose the right location
- How accessible is the place?
- How old or new is the neighborhood?
- Is it easy to get to banks, hospitals, and grocery stores?
- Is there a new development in the offing?
- What is the estimated resale value of the property?
- Get a mortgage pre-approval
- Know why you’re buying
- Be objective
- Does it fit my budget?
- Is it worth the price compared with other similar homes in the area?
- Is it in good condition or does it need major renovations?
- Hire specialized home inspectors
- Work with a luxury real estate agent
There’s a reason why “Location, location, location” is real estate’s ultimate mantra. No matter what kind of property you have, location is the one thing about it you can’t change. That’s why you should choose a place that checks all the boxes in your needs list.
Location matters so much that a standard single-family home can have a hefty price tag when it’s found in a highly desirable community. So think about the property’s potential resale value as well. Home values in Long Beach, for example, are expected to continue rising in 2020.
When choosing the right location for your luxury home, some important things to think aboutare:
Even if you intend to pay cash for a luxury home, some real estate agents may insist on seeing a pre-approval letter from a lender stating the amount you can borrow to purchase a piece of property. This is especially true for first-time luxury homebuyers without a prior history of buying or selling high-end real estate. A mortgage pre-approval indicates the seriousness of your intent to buy and your capacity to pay for the property. The pre-approval can also be your ticket to a home showing. Luxury sellers are especially picky about having peopletour their homes due to privacy and security concerns.
Buying a luxury home costs, not only in terms of the price tag, but also in keeping it in top shape and turning it into the vision of a dwelling you’ll be happy in. Are you ready for the responsibility? If you are, then knowing exactly why you’re buying a house in the first place should serve as your guide. If you want a house for your family, choose one that you can renovate to the liking of your family members and has the features to support their lifestyle. If you intend to rent it out, make sure it’s in an accessible location close to recreational areas and public amenities. If you plan to sell it after a couple of years, do your research and choose one in a prime neighborhood with increasing home values.
Don’t be too swayed by your emotions. While it’s perfectly fine to fall in love with a feature or amenity, weigh your heart’s desire against your objectives. Keep your head in the game and take the time to consider all of your options to avoid making costly mistakes.
While shopping for the right luxury home, some questions to consider include:
If in doubt, you can always talk to your real estate agent for all your home buying concerns.
Many assume that you can hire just any inspector for any property type – no matter how big or how many features it has. But while most inspectors are more than capable of inspecting a standard home, only a few are qualified to inspect a luxury home. You may have to hire separate inspectors to look into high-end features like multiple HVAC systems, smart home technologies, and swimming pools. A larger-sized home also means there is more ground to cover and estates could have separate structures like guest homes or outdoor entertainment spaces to inspect.
No matter what kind of property you’re in the market for, the advantages of working with a real estate agent can’t be stressed enough. Real estate agents are invaluable when it comes to taking the confusion and guesswork out of the home-buying process, especially for first-time homebuyers. They are also a valuable source of market information and insight.
However, don’t just hire any agent when buying the luxury home of your dreams. You want someone who knows the local luxury home market from the inside out, so look for someone with an intimate knowledge of luxury homes in the area you’re buying.
These agents don’t only have exclusive knowledge, but they can also connect you with high-end sellers who only open their homes to the most qualified buyers. Just be sure to hire someone you can communicate properly with so your buying experience can be as smooth as possible.
If you need help buying a home in Long Beach, CA, you’ve come to the right place. I’m Michael Thue, and together we can find the perfect home for you. Give me a call at 562.299.3583 or send me an email at Michael(at)SoCalTopHomes(dotted)com. Alternatively, you can fill out my contact form here.