The sales of modern luxury homes increased by 6 percent in 2016 from 2015. The same year, the number of homes valued $1 million and above rose by 3.3 percent while those value above $5 million increased by $5 million.
The increase in sales was due to decline in the sale price, thus offering buyers an opportunity to grab their dream homes at a reduced price.
Still, even with low prices, it is helpful to understand how to buy a modern luxury home that gives you value for your money.
Before you do your research and crunch the numbers, here are essential tips for going high-end.
Buying a Modern Luxury Home
1. Proper Timing is Helpful
If you have been to a business class, you must beware that supply and demand drive prices, right? So, where there is less demand for homes, you have a good chance of finding.
Wait until the off-season, which in most cases in the U.S. is winter, then start your hunt. During winter, people rarely go outside for home visits. To add to that, holidays are usually very near, compelling people to spend their money on family and holiday stuff.
For you, this is the right time to hunt for the right luxury home.
2. Find a Qualified Real Estate Agent
One thing you need to know that you can go on this hunt alone. It’s wild out there, and you want to have a real estate agent who has the right expertise to lead the way, of course with your best interests at heart.
An agent familiar with the luxury market is your asset. They will help to determine the market value of the property and advise on the best options to consider.
Most markets use comparables to value properties, and this can be a challenge when there are no similar properties in the area of your choice. In such cases, an agent is your best friend.
3. Due Diligence Helps A Lot
As with any real estate home, it helps to take the time to inspect a modern luxury home before the purchase. Assumedly, you already have the features or designs that you wish the house to have, right?
So, you want to take them into account during your search. In some cases, you may need a professional home inspector to check amenities such as pools and spas, exterior fireplaces, central vacuum systems, heated floors, landscape lighting, vacuum systems and fountains.
4. Give a Straightforward Bid
After extensive research, home inspections and hours of consultations with you agent, you are now confident to give a bid. The trick here is to make it straightforward.
Like buyers, sellers also want a fast transaction. So, try to place a bid that is appealing the first time. Offering fewer contingencies gives the seller the idea that you really want to close the deal.
Another trick is to offer a larger deposit when closing the deal and this can help you save on the actual price of the home. If you are using financing, always get it early enough. This is one of the important considerations when buying a home.
5. Foreclosure Listings Are Gold Mines
If you want to purchase a luxury home up to 15 percent below its actual listings, take the time to find foreclosure properties. However, bear in mind that you are purchasing the home as it is.
So, it is important to have an inspector to evaluate the home for possible repairs and other costs. Some people believe that you can only pay for a foreclosure home with cash. That’s not true as you can get a financing for it.
Back to You
With these home buying tips in mind, buying a modern luxury home shouldn’t be an arduous process. One of the important factors that affect the prices of luxury homes is the presence of other luxury homes in a particular area.
Just take your time and make sound decisions.