Tips for Purchasing a Luxury Home And How to Buy Sell or Invest in a Home?
I’m going to share with you some of the differentiation that is involved when looking to purchase a luxury property and what that looks like compared to buying a regular or starter home. There are several steps that you’re going to want to consider.
The first thing that I want for you to be able to establish is a great search process you want to define how it is that you’re going to find these types of property oftentimes they’re not even on the market they may be pocket listed so making sure that you not only have MLS access and internet-based access but also access to the private network of properties through a variety of sources and those sources we will get into in a sec so search process is number one.
Number two is making sure that you’re finding the right set of reliable photos oftentimes with the luxury property it’s not just one building it might be several it might be estates there might be grounds involved there might be amenities that are difficult to photograph a helicopter pad a vineyard a multi-car garage all of these things will require a different lens with which to look so the more photography that we get access to the better a lot of times with luxury property there won’t be as many photos based on privacy and will want that access to upfront to make sure that this home will match the needs that you are looking for so that is step number two.
Step number three that we want to find is making sure that we have the right types of documentation there’s not only a standardized purchase agreement that we can use but all of the upgrades that could happen with a property if there’s work that has been done recently on renovations or additions for new buildings will want to track that there is appropriate permitting involved and all of the other crossing of T’s and dotting of eyes that will be handled in a typical real estate transaction and the requirement something that is luxurious and much larger.
Number four as we touched on earlier is going to be finding the right team and the right advisors with luxury property there’s a complexity that doesn’t exist in traditional transactions and so there can be a real estate agent that will also work exclusively with a family office a financial planner corporate attorney family trust a number of things can be involved and so having the right team in place and having them all know and work together well theory itself in spades and make the transaction that much smoother that’s the next step we’ll move on than at this point to look to the future know that in buying a luxury property often times it won’t just be appraised like a standard home because there’s not inventory like it really can be like a snowflake and extremely unique and so you’ll want to take advantage of trying to find this content of looking into the future and making sure that that asset will continue to gain value and that there are other like-kind comparables in some way or another to be able to work off.
Last but not least knowing that this property is a snowflake will take us into our last step which is going to be often there is room to negotiate I have found that there are properties that will be listed for 30 40 or 50 million that might sell for 10 or 20 plus percent lower than asking price or even more this is millions of dollars of discounting that can be done in the way that is through effective negotiating which is much different than the typical transaction.
There are a number of other tips and trends that we can share with the luxury property but at least wanted to give you a start to know some of the differences and as always as a resource, if you are looking to buy or sell a home and you’d like to find out what your home is worth or you’d like to find out what else is on the market please do.
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