With high-end features, expansive lots, and exclusive locations, luxury homes are in a league of their own. However, this also means that you have to be extra careful when entering this prestigious market. Although the buying process is the same as purchasing regular properties, making a mistake has more costly repercussions.
Here are 5 common mistakes you can avoid when buying a luxury home:
- Buying on impulse
Too often, buyers get swayed by emotional influences that lead to poor and costly home buying decisions. This is especially important to remember if you’re considering diving into the luxury property market, where there is no such thing as being too careful. As a buyer, you should remain objective and open to alternatives. Weigh all your options carefully so that you can be sure of getting the right luxury property.
- Not knowing why you’re buying
The type of luxury property you buy depends on what you’ll be using it for in the long term. Will it stay with the family or will you sell it after a couple of years? If you’re buying a second home in a vacation destination, do you plan to rent it out to the seasonal high-end crowd, or will it remain a private vacation home?
Think, too, about how luxury homes are often customized to the whims of their owners. Are the home’s individualized features an asset or a drawback based on what you hope to use it for? If it’s an investment you want to sell for a profit, are you willing to risk the possibility of having fewer potential buyers or being haggled down if the home sits too long in the market?
But if you’re buying a luxury home to have and to hold for you and your family, choose a piece of property that you can renovate as you see fit, or with enough acreage to erect outdoor living structures, sports courts, and the like.
- Failing to assess the neighborhood
Home buying isn’t just about property price and features. The neighborhood matters, too. Get to know the public amenities, nearby attractions, and future development plans of the area. It also helps to consider things like the neighborhood’s crime rate, distance from work, and transportation options.
- Lack of financing pre-approval
One common misconception about luxury real estate buyers is that they don’t need to get a mortgage pre-approval since they can pay in cash. The truth is that while many luxury homebuyers make an all-cash deal, most sellers limit showings to pre-approved buyers only. While this may seem like a hassle, getting pre-approved can actually help you in the long run because a pre-approval indicates that you’re a serious buyer with the capacity to pay for the luxury home of your choice.
- Working with the wrong agent
Luxury properties require a specialized real estate agent. To gain access to unlisted options, look for a Realtor who can buy and sell some of the most desirable properties you won’t see on the market. These luxury agents have cultivated a network that allows them to tap into anonymous high-end clients who want only the most qualified buyers to view their homes. The specialized knowledge and skills of these agents won’t just open doors, they will also provide you with correct and up-to-date information about the local luxury home market.
Luxury homes for sale in Long Beach Island, NJ are a premium sell – and buyers are biting. To find the home you want, consult with a luxury home expert. Contact Craig Stefanoni right away at 609.432.1104 or send him an email at cstefanoni(at)zackshore(dotted)com.