First-Time Luxury Property Buyers – How to Do it the Right Way

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Luxury First Time Home Buying

Things Luxury First-Time Home Buyers Need to Consider

Are you planning to purchase an expensive residential property? In the United States, prices of luxury homes typically start at around $1 million in secondary or sub-markets. But for primary markets in big cities like New York and Los Angeles, you’ll probably begin with $5 million or more.

Today, the profile of many buyers who want to own their first homes is not the same as it was in the past. The majority of new homeowners belong to the Millennial generation in keeping with the demographic transition, which dates back to the 1990s.

Like everyone else, luxury first-time home buyers have to keep the eye of the prize and do it the right way. Let's take a look at some sound considerations about buying a high-end home.

Know When to Stop Renting

Most likely, the desire to buy an exclusive residence tells you it’s about time to stop renting. If you rent, there is no burden of making a substantial financial investment, but monthly payments go to the lessor. In other words, you simply throw away your hard-earned money because the property does not belong to you.

Owning a home has benefits like amortization, which lessens your loan balance if you avail of a fixed-rate mortgage. Besides, the property appreciates over time, building equity as the property’s value increases. You also get house buying tax deductions for property taxes and mortgage interest.

Nonetheless, watch out for the interest rates, which depend on the kind of mortgage. Don’t rush if you are not sure of mortgage rates, terms, and interest charges. So, there you have it. You can now start looking for your dream home.

Establish your Budget

Rigid lending restrictions have not really affected the upscale property market compared to the general marketplace. Yet, it’s still necessary to establish a detailed housing budget since you would not want to let go of the perfect house in your desired location. Budgeting helps you save time and acquire your home faster.

If you’re having some difficulty, seek the advice or services of a professional Realtor. At the same time, prepare documents like bank statements, wage and tax statement form from the Internal revenue service, tax returns, and other financial requirements. The approval process for loans usually takes around 45 days from start to completion. It could be a little more or less, but five to six weeks is very commonplace.

Focus on your Wishlist

Identify the property that would be ideal for you and your family. Create a wish-list. Ask yourself smart questions: what is your preferred location? What do you want your house to look like? Perhaps, you would like a quiet place by the beachfront or a modern home with contemporary architecture in a posh suburban area. You may want to live in an urban neighborhood, which is quite expensive, but you’re closer to the business district, restaurants, entertainment hubs, and schools.

Prioritize your preferences such as design, the number of bedrooms and baths, fixtures, lighting, garden, and lawn. Check all the items that you have accomplished to avoid getting overwhelmed. Consider the square footage of the property.

A bigger space will allow you to build an outdoor pool, additional rooms, play area for the kids, and veranda. Even then, a smaller space can look spacious with the correct layout. You can hire an architect and interior designer if you want an expert to deal with all this stuff.

Following sound luxury home buying tips will put you in a better position to make the best decision possible.

Don’t Get Sidetracked with Small and Unimportant Features

There’s nothing wrong with yearning for elaborate features. However, these will certainly come with a high price that can break your established budget. Worse, nice add-ons may not have the value after your excitement fades away. Then, you’ll realize that you were preoccupied with trivial matters. Come up with a list of basic necessities and find a house that will meet these needs. Pay attention to the garage and its features. More importantly, garage security, as you don’t want to risk your favorite car.

By the way, don’t forget a home inspection, which is mandatory and vital. Real estate agents will try to do property-staging to make the house look very nice. Thus, check if repairs and refurbishment have been done well before signing the contract. Calculate the renovation costs and take this into account before purchasing the house since it significantly increases the acquisition cost.

What many buyers find out the hard way after they have bought the home is that the renovations were not done as well as they should.

Pay Attention to Security

Among the first things that luxury homeowners should consider are security and privacy. Check out the crime rate in the neighborhood before you make a decision. You can easily find this information online. Getting smart security systems will ensure that your loved ones will be protected from burglars and intruders.

These cutting-edge platforms, like the Canary Flex security camera, include monitoring capacity for indoor and outdoor use. It is loaded in your smartphone with no complicated installation required.

All you have to do is connect to the Internet, and the camera starts working. The device is rechargeable and boasts of a durable magnetic base and rotating body design. The app is designed with auto adjustment as well as home and away security modes connected to your phone’s location.

Be a Savvy Negotiator

Assuming that you are in the stage of finalizing the contract, be ready to negotiate with regards to the contract details. These could be minor concerns like who’ll take up repair costs and the date of settlement. It’s good to be one step ahead. But keep in mind that negotiations work without hassles if both parties are willing to compromise.

The key is standing your ground but doing this respectfully without offending the other person. You may give up something that is not too important for you just to reach an agreement. Then, you will be surprised that the seller may return the favor and concede on one of your requests.

Parting Thoughts on a First-Time Luxury Purchase

When you search for a luxury residence, many possible choices will make you excited and also unable to make up your mind. It could be impudent if you veer away from your initial plan and budget.

If you’re not sure about your moves, the real estate agent can be of big help. You deserve to buy your long-dreamed-of house. Conduct your own research and due diligence. Go through the points mentioned in this article before starting the home buying process. Turn your dream into reality but follow the rules and do everything the right way.

Other Excellent Real Estate Resources Worth a Look

Get more helpful guidance to make the best decisions possible when buying or selling your next home.

Avoid common moving mistakes - will you be buying your first home soon? One of the most challenging parts of purchasing or selling a home is the eventual move. Moving is a dreadful task that most people wish they could avoid. Moving, however, can be slightly less challenging if you have a solid plan in place and avoid problems. See some of the mistakes you'll want to avoid in the article at Vocal.

How much is the commission to sell a house - one of the most asked questions from home sellers to real estate agents is what they will be paying in fees. For a homeowner, the commission is the single largest expense in selling a property. The article at Active Rain provides some helpful guidance on what you need to know about real estate commissions.

What should I know about renting to own - there may come a time when you are trying to decide between buying a home or renting one. The compromise that some people opt for is renting to own. There are, however, a number of pros and cons to moving forward with this kind of transaction. See what you need to know about rent to own arrangements in the article at Realty Times.

About the author: The above article on first-time luxury home buying was written by Lidia S. Hovan. Lidia is a professional writer who loves to share her expertise in all things real estate, finance, and home improvement, among other things. Lidia is a part of the content and marketing team at OmnicoreAgency. She contributes articles about how to integrate digital marketing strategy with traditional marketing to help business owners to meet their online goals. You can find really professional insights within her publications.

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