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