If you want to know how to buy a luxury home, it’s important to consider how the process is different from shopping for any other home. There are certainly similarities and overlap between each of the processes. At the same time, there are unique aspects that come into play when you’re shopping for a luxury home, and it’s important to prepare for these unique concerns ahead of time.
1. Decide what luxury means to you
Most people assume that a luxury home is simply a home that is priced at the top of the market. While luxury homes often do cost more than other homes, this is not the only defining factor of a luxury home. Luxury homes are known for their superior building materials, their uncommon amenities, and their prime locations. They use only the finest materials that reflect superior quality and craftsmanship. They feature massive kitchens with plenty of space for multiple people to work together at the same time and often have spacious outdoor living areas that contain built-in kitchen appliances as well as swimming pools and hot tubs. The master bedroom suite should feel like something you might encounter at a resort. Luxury homes usually reside in close proximity to the most desirable locations in town and may even offer sweeping views of the surrounding natural areas. Make sure you’re buying a home that is truly luxurious and not just a home that costs more than other options.
2. Understand what the process requires
You’ll want to speak with a lender early on in the process to get a better idea of what sort of loan you can qualify for and how much you’ll be able to receive in funding to purchase your new luxury home. Keep in mind that the requirements are often stricter for individuals looking to secure a larger loan. You may find that there are higher standards for your debt-to-income ratio and your current credit score. Your lender will ask for all of the information that they need in order to determine what sort of candidate you are for a loan. Remember that different lenders will offer different interest rates, and it’s important to consider multiple options so that you can be sure you’re receiving the best deal. A slightly lower interest rate could still save you thousands of dollars over the life of your loan. Once you have a pre-approval letter, you will be prepared to start connecting with realtors in the area who can help you shop for luxury real estate. Some realtors will only work with buyers who have been pre-approved for a loan, so you won’t want to skip this step.
3. Connect with others in the area
It’s important to remember that many luxury homes sell without hitting the public market. Usually, this is done to protect the owner’s privacy. Sometimes the best way to find out about available luxury properties is to connect with others in the area who would know about luxury homes that are on the market. In many cases, a realtor who specializes in luxury real estate is often the best resource. If they have worked in a particular market for several years, they have likely made connections with other luxury real estate agents, and they may hear from them about properties that are available.
4. Determine what features and amenities are most important for you
At some point, you may have to decide if you’re willing to sacrifice a few of your desires and preferences in order to get into a home more quickly. This doesn't mean that you should settle for a home that you don’t love. A luxury home is a major purchase, and you want it to be something that you enjoy. What’s helpful is to decide early on in the process what your non-negotiables are and what preferences you can live without. This will help you narrow down your options and evaluate each possibility that presents itself.
5. See the home in person
Some homes show better in person than they appear online. Don’t rely on a home’s online listing to give you all of the information you need to determine whether or not you’ll submit an offer. It’s crucial that you see the home in person as you’re determining if it’s the right house for you. Set aside some time when you visit the home to drive around the neighborhood and get a feel for what shared amenities are offered. This will also give you an idea of what the general atmosphere is like in the neighborhood. Keep an eye out for key services near the home, such as grocery stores, hospitals, and schools. You don’t want to have to travel 20 minutes each way every time you need a gallon of milk or a dozen eggs.
6. Make a competitive offer
Once you find a home that you like, you’ll submit an offer to the seller to buy their home. If the home is still on the market after being listed several weeks ago, you may have greater negotiating power to make an offer below the asking price or with certain contingencies included that benefit you as the buyer. Your realtor will help you determine what sort of initial offer to make and how to respond to each counteroffer you receive from the seller.
7. Work with an agent who specializes in luxury real estate
Susan Wisely knows exactly how to buy a luxury home in McLean. She has extensive experience handling transactions for luxury properties and helping individuals like you who are looking to buy or sell their luxury homes in the area. Reach out to her office when you’re ready to begin seriously shopping for McLean luxury homes.