Although it’s difficult to quantify the definition of a luxury property, most buyers know one when they see it. The scale is grand. The location, ideal. The house, much more than a home. If you are looking to buy or sell a luxury home, you are in good company, as estate sales are hitting records across the country. For example, the number of California homes selling for $2 million or more reached an all-time high in 2013.
According to data prepared by Nationwide Real Estate Schools:“ the 11.6% price growth in California over the last year means that a house worth $925,000 last summer may be worth $1,032,300 today. (What’s more), the influx of international buyers is pushing up prices at the high end.”
When it comes to looking for a starter home or even a modest upgrade, the expertise and experience of your real estate agent is far less important than if you want to purchase a luxury home. The reasons for this are many:
- Time is money. Investing in luxury property is done mostly by people whose success is owed to hard work and wise use of time. While junior employees can afford the time to scour websites and pound the pavement in search of great bargains, successful entrepreneurs and C-suite executives understand that time is money. So they appreciate working with an expert who does the legwork for them—showing only the best possible options.
- Connections are key. Luxury property is unlike that on a more modest level, in that networking is critical. The most luxurious properties come on the market only to be snatched up by the first discerning consumer. So anyone who is interested in buying or selling a luxury home will benefit from the experience of brokers and agents who are in the know.
- Money talks. The real estate professional you choose for a relatively small real estate transaction is less critical than if you are dealing with a six-figure sale. Don’t leave your property search to someone who doesn’t intricately understand the market.
To help you on your quest, we have prepared 10 steps to help you buy luxury property. In next week’s blog, we will focus on 10 steps to help you prepare to sell your luxury home.
5 Steps to Help You Buy Luxury Property
- Find the right agent. Although this is always the case, in luxury transactions, working with the perfect real estate professional will make the difference between a successful transaction and a frustrating process. The Prime Team is a Leverage Global Partner, uniquely aligned with the most prestigious independent real estate brokerage firms around the world. Leverage Global Partners offers its members the opportunity to better serve their clients’ relocation and real estate portfolio needs by establishing each member firm as a key player in the international real estate arena. Prime Properties is the only Leverage member in Lake Arrowhead.
- Don’t overlook the basics.The foundation of energy efficiency begins with the basics — sealing and insulation, an orientation for optimal efficiency, adequate ventilation, an HVAC system correctly sized for the house and Energy Star-rated appliances (or better)! The green issue looming on the horizon is water usage. Consider any feature that conserves water or collects water to be a plus.
- If necessary, procure financing in advance, if possible. Most brokers who specialize in luxury real estate will be able to assist you with this. As long as the terms you offer are attractive and you come in with a large down payment, you are in equal position with a cash buyer who is offering less than market value for the home, according to Iyna Bort Caruso of The Wall Street Journal.
- Do your due diligence. In many cases, since luxury homes are large, they feature amenities that may require specialized home inspectors. (If you work with an experienced real estate professional, he or she will be able to help you find experts of this kind.)
- Don’t rush the process. Although the market has improved, it may take awhile to find the perfect property. Trust the agent you are working with to find you the right home and to negotiate on your behalf to make sure you secure it.
#RealEstate investing can be tricky—especially if you are in the market for #LuxuryProperty. If you are interested in buying or selling property in Lake Arrowhead, California or the surrounding area, don’t get caught in a Catch 22 — owning two homes or none at all. The Prime Team is the only group of real estate agents in the Lake Arrowhead area who stand by our services by offering a number of guaranteed sales and purchasing programs. Recently named the exclusive Lake Arrowhead member of Leverage Global Partners, we are perfectly positioned to help you take advantage of today’s luxury market. We’ll answer all of your questions today, and you’re never under any obligation. Call 1-909-337-7653 and ask for a member of the Prime Team.