Luxury

Luxury real estate is a unique part of the real estate market that comes with its own considerations and challenges. Below are some of the most common questions and concerns in navigating the market for luxury real estate in our local area:

What is Luxury Real Estate?

Rather than being defined by the features that a home has, luxury is usually defined as homes that are priced in the top 5-10% in their local market. Because of this, there is no one set price point that determines being “luxury” across the country, and the bar for a property to be included in this category will change as the market goes up and down.

Why Buy Luxury Real Estate?

There are a number of great reasons for buyers that can afford it to look at homes in the luxury category:

•       Resale Value: A luxury property typically retains and grows in value over time, making it a reliable investment for future sale. 
  
• Exclusive locations: Many luxury homes are located in some of the most desirable areas of Essex County, letting you pick the ones that offer you the neighbourhood and amenities that you want. Whether you want to be close to the city, are seeking a quiet, family-friendly place out in the county, buying a luxury home opens up all kinds of opportunities for you.
  
• Lifestyle: Besides the location, much of the value of a luxury property comes from the lifestyle it gives you. Luxury properties typically give you the extra space, style, property sizes, and home features you want to make your life more comfortable and enjoyable.
  
• Waterfront Access: Many of the properties available along the waterfront throughout Essex County are luxury homes. Whether you’re interested in boating or just want the beautiful views that come with being along the water, the right luxury property can put that right outside your door.
  
• High-Quality: Many luxury homes, especially newly constructed ones, include high-quality materials throughout to help it last over the long haul.
  

How Does the Mortgage Process Differ With Luxury Real Estate?

Many luxury homebuyers don’t finance their purchase at all, instead paying cash for the home. However, if you choose to finance your luxury property, it’s important to talk to your lender as soon as possible. A high-value mortgage will often require special negotiations for the terms and conditions, and consider speaking with more than one lender to find the best offer.

Changing interest rates may determine whether you want to take on a mortgage for your luxury home. Some luxury buyers will finance a home because they can use the capital in other investments to make more than they’re spending on interest, but as interest rates change, it’s important to consider whether you should take on the loan if you have the option not to.

Your down payment options change depending on the price of a home, so luxury buyers will need to keep this in mind when determining how much to finance.

• Houses priced between $500k and below $1 million require you to put down 5% of the purchase price for the first $500,000 and then 10% of the portion of the purchase price above that
  
• Houses priced at $1 million or more require putting down 20% of the purchase price
  

Do’s and Don’ts of Luxury Real Estate

Do:

• Work with experienced luxury real estate agents when buying or selling. Properly marketing your luxury property requires a specialized approach compared to other listings in order to reach your target market.

  If you’re looking to buy a luxury home, the right agent will know what to look for, connect you with the right properties based on your needs and wants, and know how to approach negotiating the right price for a high-end home.
  

• Get to know the area: Luxury properties are available across Essex County, so get to know the areas that offer the types of homes you want, including nearby features like schools, shopping, entertainment and other amenities.
  

• Determine the Amenities You Want: Before luxury home shopping, figure out the amenities you need and want in your new home so you can narrow your luxury home search. Luxury properties can offer some very specific amenities not available in other categories of real estate, so if you have a certain feature you really want (or would want space to add), list that up front and let your real estate professionals know.
  

• Visit the Home Before Buying: If you live in another city and are looking at luxury real estate with the intent to move, visit the home before buying if you can. Online photos can give you a great first look at the place, but seeing a home first-hand is still the best way to really see if it’s the right home for you.
  

Don’t:

• Overprice your home when selling: Luxury is a very specialized market, and setting the right price for your property to attract buyers while still reflecting all that your property has to offer is very important. Our team will work closely with you to determine the right list price for your luxury property.
  
• Rush into a buying decision: Unless you find a property with exactly what you want up front, don’t rush. Explore the available properties and if one isn’t available right now that suits you, keep exploring and wait as more listings come on the market if you have that option.
  

• Rely Only on Online Listings: Some luxury properties are listed exclusively in certain places and aren’t available through standard online listings. Our real estate team can help you find out about private and exclusive luxury real estate listings that fit your needs.
  

• Skip the Home Inspection: Even with the high-quality materials that come with luxury homes, a home inspection is still crucial to get the full picture of what you’re buying. This is especially true if you’re buying an older luxury home.
  

We understand that every luxury real estate buyer and seller is unique. If you’re in the market for luxury real estate in Windsor and Essex County, we can walk you through the ins and outs of buying and selling high-end homes. To learn more about how we can help you find your next luxury property or sell your luxury home, contact us today.