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:

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.

Do’s and Don’ts of Luxury Real Estate



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.

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