Buying a luxury home is an important purchase for your own residence, and it is also an investment into a piece of real estate. For these reasons, you want to go into the purchase with the right information and the right experience. Here are some recommendations to help you through the process of finding the right luxury residential home and making its purchase.
Check Your Realtor's Experience
Before you can start checking out homes for sale, you want to check out your real estate agent's experience. When you buy a luxury home, you want a real estate agent who knows the luxury market and has completed many sales transactions dealing with luxury real estate. A luxury home is a big difference from a tract suburban home or a townhome because luxury real estate is priced higher and has more expensive features and details within the lifestyle of the market.
A luxury real estate sales agent will know that not all luxury real estate homes are not going to be listed publicly or on the multiple listing service (MLS). Many of the luxury home sellers won't want to list their home for sale for the public to view, and they may not even want a sign posted in the front of their home. With an experienced luxury real estate agent, they will know what luxury homes are for sale because they will have a good professional relationship with other luxury agents. Their connections in the luxury real estate market are key to having a good selection of homes to view and tour in order to find one that fits your needs.
Prepare Your Finances
When you are preparing to purchase a luxury home, you will need to do some preparation for your finances so that you are ready to secure the home in a purchase offer and close on the home in a timely manner. If you are using bank financing to pay for all or some of the purchase, get your mortgage loan application started before you start searching so you can provide a pre-qualification letter from your mortgage broker to the seller and their agent. This will show them proof you are qualified to purchase the home.
If you are going to pay cash for the home, you won't need a loan or pre-qualification letter. Your own cash reserves will pay for the home, and the seller may want to see proof of your funds before accepting your purchase offer. They may ask for a copy of your bank statement showing the funds available. You can provide your statements with all the information listed and visible to the seller, except for your account number and your address, which you can remove from the copies to retain your privacy. Or you can provide them with a letter of reference from your portfolio manager if you have cash tied into investments.
Share1 September 2021
Once I paid of the mortgage on my house, I decided I wanted to buy an investment property. I had no idea that the buying process would be different, but it really was. There were so many things to consider that I hadn't thought about, and even the loan application process was different. It occurred to me that if I didn't know about it, others likely didn't either. I built this site to help others see what I went through buying my first investment home. I hope that it helps you to approach the process with more confidence and understanding.
