Of course the basic process of buying a luxury home is the same as purchasing any home, but there are subtle differences that could trip you up if you are unaware.
- If your luxury purchase includes a mortgage of any kind, there is a good chance it will be what is termed a Jumbo loan. Conforming/Jumbo limits vary by location so be sure to check the limits for your area. Credit scores and income sources are scrutinized more carefully. On the upside, down payment requirements for Jumbo Loans has loosened considerably in recent years.
- For security and privacy reasons there is probably better than a 50/50 chance, that the owners or sellers of a Luxury Property will not have a sign on the property, or any indication whatsoever that the home is on the market. In addition, access to Luxury homes is a bit more controlled. To find the luxury home that most meets your needs or desires you will need to consult your Realtor. Luxury properties are often found through a Realtor’s personal connections and they are aware of the nuances of the Luxury Real Estate Market.
This video touches on some of the details to be aware of. There is more Luxury Home buying information below.
- In the case of a Luxury Home purchase it is wise to consult with your financial planner and possibly arrange a meeting between the Financial Planner and the Realtor. How you take title and ownership matters.
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Know the details of your Title Insurance. Speak with the title and/or escrow company involved and inquire about the Owners Policy. The standard, required title insurance only covers the mortgage company. The area that you live in will determine whether the Seller or the Buyer will cover the Owners Policy.
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Check with the city and make sure you know what construction is planned near the property. Oftentimes a portion of the value of a Luxury Home will depend on views or privacy. Will your view remain unobstructed? Is your privacy ensured?
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Architectural uniqueness and customization are equity-builders in the Luxury Market. Research architects and designers, know the ‘who’s who’.
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Beautiful isn’t always functional. Take some time to walk through the home and imagine relocating your lifestyle to each living space. In addition look for quality, in windows for instance. Walls of windows can be both stunning and impressive but in very hot or very cold climates those windows should be top-of-the-line for energy efficiency and durability.
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Additional Resources for Home Buyers and Sellers
