10 Tips for Buying Luxury Property

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

1. 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.
2. 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.
3. 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.
4. 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.)
5. 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.

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How to Quickly Sell Your Home

Few things are as frustrating as listing your house for sale only to watch it sit on the real estate market for days, weeks, months, even years…without a bite. If you have decided to list your home, whether out of necessity or just because you would like to upgrade, your best case scenario is to sell the property fast. After all; time is money. And the harsh reality is that homes that sit for sale for long periods of time typically sell for much less than their short-run counterparts. So how can you make sure your house sells quickly and for top dollar?

Here are five time-tested tips for rapidly selling your home:

1. Set realistic expectations. Before you start counting chickens before they are hatched, do a little bit of research. You can check on websites like Zillow or Trulia to figure a rough estimate of value. But don’t put too much stock into what you find…particularly if your listing is in an area with lots of variety. Another thing you won’t be able to detect from public information is how long properties sit on the market before generating offers. And as the seller, you will likely be asked to absorb at least some of the closing costs. So don’t make the mistake of estimating too much potential profit. This could leave you disappointed and disillusioned even if your house nets a tidy sum.

2. Ask the right price. The enemy to a quick sale is to ask too much for your home. Of course, many buyers are afraid of leaving money on the table. But if your house is priced to sell and in tip-top shape, you could generate enough interest to start a bidding war. And even homes that are located in low demand areas pique interest when they are offered at bargain prices. One of the most important reasons to hire an experienced listing agent is because professionals have the ability to subjectively evaluate a home’s value. Most owners are unable to separate their own hopes, dreams and needs from the actual value of their property.

3. De-clutter, clean and fix it up. Nothing detracts from value so much as a dirty, unkempt, overcrowded house. So do whatever it takes to de-personalize your property. Remove family heirlooms and photographs so home to help buyers picture themselves in your home. It may be necessary to hire handymen, painters and housecleaners to get your property up to snuff. Consider doing so, as you will likely see a higher return on your investment.

4. Stage it. If you can swing it, hire a professional home staging crew. Studies reveal that staged homes sell faster and for more money than empty buildings or over-crowded properties. Although your home means a lot to you, it may not fit in with the expectations of the average buyer. So making it as attractive, de-cluttered and clean as possible will up your ability to quickly sell.

5. List with the right team. Homes are usually the highest-ticket item anyone sells or buys. So the importance of working with the right team cannot be overstated. The right realtor brings a lot to the table: education, experience, neighborhood knowledge, price guidance, information about market conditions, professional networking, negotiating prowess, paperwork processing, closing questions, confidentiality, and the ability to serve as a buffer between sellers and potential buyers. What’s more, some real estate agencies (such as the Prime Team) actually offer guaranteed sales and purchasing programs. So don’t go it alone.

Real estate investing can be tricky—whether you are buying your first home, purchasing a vacation home, or upgrading from a starter. 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. So don’t miss a prime opportunity to take advantage of today’s 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.

Should You Buy Vacation Property?

While it may seem attractive to rent timeshare property or register at a hotel for your next holiday, consider the benefits of buying a vacation home in your ideal location:

• Equity—why pay rent to cover someone else’s mortgage when your vacation dollars could be building a nest egg? Since the average amount spent on vacation is just over $1,600, according to a study done by Visa, you could greatly reduce the amount spent on meals eaten out and rentals by applying vacation funds directly to your investment portfolio.

• Home Away From Home—one of the drags about going on vacation is all of the prep work required. Since packing and lugging your belongings is an unnecessary requirement if you own the home you travel to, vacation home owners rest more than their hotel-going counterparts. After the initial move in, the only thing you’ll need to bring with you on your next trip is a good book.

• Room to Relax—why pay per night to rent someone else’s cubicle when you could buy an entire multi-room facility suited precisely to your own taste? Regardless of your budget, the cost-per-stay will go down with every trip if you stay in your own place. And if you take the plunge and buy a vacation home, you will actually save money the more vacations you decide to take!

• A Place for New Traditions—if you are taking a family vacation, you are likely doing it (at least in part) to build memories with your family. Purchasing a second home is an investment in family because it will allow you to develop rich family traditions.

• Potential for Income—as much as you would love to vacation every day, chances are that your opportunities to get away will be tempered with the demands of the real world—jobs, kids in school, community responsibilities. So you might consider letting your vacation home pay for itself by renting it out. If you buy right, you should be able to entice vacation hunters to pay by the day to stay instead of letting the home sit empty. Many income property owners enjoy their second homes almost rent-free by generating sufficient income during vacation season to cover the total amount of their annual mortgage payments.

• Time to Grow— since people rarely increase their wealth by owning property for short periods of time, long-term vacation property investing makes a lot of sense. Instead of purchasing property to let it sit idle while the market improves, why not buy something you can enjoy while it appreciates?

Real estate investing can be tricky—whether you are buying your first home, purchasing a vacation home, or upgrading from a starter. 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. So don’t miss a prime opportunity to take advantage of today’s 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.