Luxury Home Advice - Buying a Luxury Home
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Gail Rodgers
Kinlin Grover |
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Be Smart When Choosing a Luxury Neighborhood
Shopping for a luxury home? Be sure you know what you’re getting into. To maintain their exclusivity and protect land values, many upscale neighborhoods often are controlled by strict covenants – which means that homeowners must abide by the covenant rules whether they agree with them or not. Be sure and seek home buying advice from a real estate professional familiar with the neighborhood who can assist you in making the most informed decision.
Before you make the purchase, learn as much as you can about your new luxury neighborhood and the surrounding area. Follow these tips:
• Talk to potential neighbors. Ask how they like living in the area. Find out about problems they may have encountered with various rules or covenants. Don’t forget to ask what they like most about the neighborhood.
• Investigate the demographic makeup of the neighborhood. Your real estate professional should be able to help. Make sure the neighborhood’s demographics fit with what you are looking for in a community.
• Be sure and put your hands on a copy of the homeowner’s association rules, regulations, and guidelines. Some associations are strict, dictating things like home color, how many cars can be parked in your driveway, and more. These rules tend to be more prevalent in upscale neighborhoods, where most luxury homes are found, but not necessarily.
• Check into local zoning laws. This is important so you know for sure whether your home will be protected from development nearby – a new supermarket or commercial office development. Your luxury home will maintain its best value in a neighborhood that has strict regulations on commercial growth.
In short, gather as much information as possible about your neighborhood. This will help you quickly adjust to your new surroundings as you move in and become a productive member of your new community.
Before you make the purchase, learn as much as you can about your new luxury neighborhood and the surrounding area. Follow these tips:
• Talk to potential neighbors. Ask how they like living in the area. Find out about problems they may have encountered with various rules or covenants. Don’t forget to ask what they like most about the neighborhood.
• Investigate the demographic makeup of the neighborhood. Your real estate professional should be able to help. Make sure the neighborhood’s demographics fit with what you are looking for in a community.
• Be sure and put your hands on a copy of the homeowner’s association rules, regulations, and guidelines. Some associations are strict, dictating things like home color, how many cars can be parked in your driveway, and more. These rules tend to be more prevalent in upscale neighborhoods, where most luxury homes are found, but not necessarily.
• Check into local zoning laws. This is important so you know for sure whether your home will be protected from development nearby – a new supermarket or commercial office development. Your luxury home will maintain its best value in a neighborhood that has strict regulations on commercial growth.
In short, gather as much information as possible about your neighborhood. This will help you quickly adjust to your new surroundings as you move in and become a productive member of your new community.
Redecorate Before You Move Into Your Luxury Home
Think through what you want to do to your new luxury home – and do it – BEFORE you move in.
Take some time during your luxury home buying process to plan for and make improvements. You will save a lot of headaches and the move will be more fun if the house has already been modified to match your tastes and lifestyle.
For example, if you want to change from carpet to hardwood flooring, or if you prefer a different color scheme or wall treatment, decide and get the work done ahead of time. If you have big ideas for landscaping, go ahead and begin the project. The idea is to have these tasks completed before you move your belongings into the home so you don't have the added stress of redecorating as well as moving.
When you hire a builder or decorator, don’t forget to ask for a timeline on these tasks, so you can have an accurate date for moving into your home. And be sure to get it in writing, with a penalty clause if the deadline is not met.
Remember, it’s going to be a lot more difficult to make home improvements or changes to a luxury home once you’ve moved in. Not to mention the hassle of trying to live around a bunch of workmen.
Take some time during your luxury home buying process to plan for and make improvements. You will save a lot of headaches and the move will be more fun if the house has already been modified to match your tastes and lifestyle.
For example, if you want to change from carpet to hardwood flooring, or if you prefer a different color scheme or wall treatment, decide and get the work done ahead of time. If you have big ideas for landscaping, go ahead and begin the project. The idea is to have these tasks completed before you move your belongings into the home so you don't have the added stress of redecorating as well as moving.
When you hire a builder or decorator, don’t forget to ask for a timeline on these tasks, so you can have an accurate date for moving into your home. And be sure to get it in writing, with a penalty clause if the deadline is not met.
Remember, it’s going to be a lot more difficult to make home improvements or changes to a luxury home once you’ve moved in. Not to mention the hassle of trying to live around a bunch of workmen.
Investing in a Second Luxury Home? Consider Finances
More and more people are purchasing luxury homes as secondary residences in prime vacation spots, such as beach areas, mountains, and even in other countries.
Sometimes, however, financing these dream homes can be a nightmare. Unless you have access to liquidated assets, the process of purchasing a second home can be more stressful than your initial home buying experience. Often, a second-home lender views financial obligations with an existing mortgage as a stumbling block. As you think about the purchase of a vacation luxury home, it is helpful to keep these tips in mind:
• Just because you can afford a second home does not mean you can afford any second home that’s out there. When buying a second home, it’s smart to buy based on your present financial situation, not on what you might be able to afford down the line.
• Move slowly on home improvements. Remember, this is not your primary residence and you probably won't be spending a majority of your time there, so don't be financially irresponsible and invest all of your available resources into your second home. Take some time, draw up concrete plans for home improvement, and take them one step at a time.
• Unless this home is an investment property, there’s no need to rush into expensive redecorating or remodeling. Even if it is an investment property, make only the changes and upgrades that are absolutely necessary. Develop a plan to complete the changes over time.
Often, it’s helpful to talk with experts during this process. They can help alleviate some of the stress involved and assure that you are making wise financial choices.
Sometimes, however, financing these dream homes can be a nightmare. Unless you have access to liquidated assets, the process of purchasing a second home can be more stressful than your initial home buying experience. Often, a second-home lender views financial obligations with an existing mortgage as a stumbling block. As you think about the purchase of a vacation luxury home, it is helpful to keep these tips in mind:
• Just because you can afford a second home does not mean you can afford any second home that’s out there. When buying a second home, it’s smart to buy based on your present financial situation, not on what you might be able to afford down the line.
• Move slowly on home improvements. Remember, this is not your primary residence and you probably won't be spending a majority of your time there, so don't be financially irresponsible and invest all of your available resources into your second home. Take some time, draw up concrete plans for home improvement, and take them one step at a time.
• Unless this home is an investment property, there’s no need to rush into expensive redecorating or remodeling. Even if it is an investment property, make only the changes and upgrades that are absolutely necessary. Develop a plan to complete the changes over time.
Often, it’s helpful to talk with experts during this process. They can help alleviate some of the stress involved and assure that you are making wise financial choices.
Purchasing A Luxury Home? Evaluate your Financial Situation
Most people who invest in a home, luxury or otherwise, have a limit on what they would like to spend – and on what they can spend.
Before you begin looking for a luxury home, evaluate your financial situation. Sit down with your realtor and talk about what you can afford. Your realtor can help you calculate nearly all your costs, including interest, taxes, insurance, and more.
Next, talk with your banker about what your financial institution would be willing to lend you and at what kind of interest rate. Your realtor should act as a liaison during this process, so take advantage of your realtor’s knowledge of the lending industry to help you navigate what can be a confusing process.
While there are a number of financing options available, it is important to make some honest decisions on how much you can afford to spend on your luxury home.
Before you begin looking for a luxury home, evaluate your financial situation. Sit down with your realtor and talk about what you can afford. Your realtor can help you calculate nearly all your costs, including interest, taxes, insurance, and more.
Next, talk with your banker about what your financial institution would be willing to lend you and at what kind of interest rate. Your realtor should act as a liaison during this process, so take advantage of your realtor’s knowledge of the lending industry to help you navigate what can be a confusing process.
While there are a number of financing options available, it is important to make some honest decisions on how much you can afford to spend on your luxury home.
How to Find an Agent Who Specializes in Luxury Home Sales
Buying a luxury home is much different from the purchase of a first home. Luxury homes are labeled as luxury because of their architecture, interior design, location – and their higher prices. This means that you want to be doubly sure you have the right kind of professional help as you decide which luxury home and in what neighborhood.
The home buying process, particularly for luxury houses, requires a real estate guide who is well-versed in luxury home sales. Lenders and financial institutions look at luxury homes as specialty properties. They won’t be as easygoing about financing if you are not financially stable – or even well-off. Therefore, it’s in your best interest to work with a real estate agent who can deal with potential lenders to make your financing process a bit easier. The Elegant Homes network has realtors whose sole jobs are to handle luxury transactions.
Often, luxury homes are located in tight-knit neighborhoods or communities where word of mouth works as fast as an official listing. It only makes sense to choose an agent who is well-connected in the community and in the luxury market, for the best chance at getting the home you desire.
The home buying process, particularly for luxury houses, requires a real estate guide who is well-versed in luxury home sales. Lenders and financial institutions look at luxury homes as specialty properties. They won’t be as easygoing about financing if you are not financially stable – or even well-off. Therefore, it’s in your best interest to work with a real estate agent who can deal with potential lenders to make your financing process a bit easier. The Elegant Homes network has realtors whose sole jobs are to handle luxury transactions.
Often, luxury homes are located in tight-knit neighborhoods or communities where word of mouth works as fast as an official listing. It only makes sense to choose an agent who is well-connected in the community and in the luxury market, for the best chance at getting the home you desire.
Elegant Homes Agents Specialize In Luxury Transactions
Finding and purchasing a luxury home market is very different from a typical residential real estate transaction. That’s why, when you are in the process of buying a luxury home, it's important to work with a company that has extensive knowledge about this home type. For example, Elegant Homes agents specialize in luxury homes, and can provide valuable information and advice on this type of home purchase.
First, as you look for your luxury home, it’s vital that your realtor have the expertise to judge the quality of construction and building materials used in this high-priced house. A luxury home expert should also be able to help you find homes with your specific requirements, whether that be elaborate outdoor spaces or roomy spa-style bathrooms. In addition, because each experience is different, Elegant Homes agents have a wealth of experience in this field. This gives them the knowledge and resources to make your luxury home buying experience smooth and seamless.
First, as you look for your luxury home, it’s vital that your realtor have the expertise to judge the quality of construction and building materials used in this high-priced house. A luxury home expert should also be able to help you find homes with your specific requirements, whether that be elaborate outdoor spaces or roomy spa-style bathrooms. In addition, because each experience is different, Elegant Homes agents have a wealth of experience in this field. This gives them the knowledge and resources to make your luxury home buying experience smooth and seamless.
Financing Your Luxury Home
Since luxury homes typically cost upwards of a million dollars, knowledge of various loan options is an important part of purchasing a luxury home. For example, many luxury homes are purchased with "jumbo loans." A jumbo loan is defined by a loan amount that is higher than the industry standard for loan limits, which is set by the top lending agencies, Fannie Mae and Freddie Mac. Often, however, jumbo loans do not cover the entire cost of the home. That means finding an insurance company or bank to cover the rest. Working with an Elegant Homes agent makes the process of navigating through various loan options and purchasing a luxury home much easier, if not exactly simple and carefree.
S-h-h-h – Don’t Share Renovation Plans With the Seller
When you are purchasing an elegant property, in-depth discussions with the seller regarding major renovation ideas could cause the deal to go sour.
Many luxury homeowners have spent time and money putting their home together with their own style and taste in mind, and most think that is what the home should continue to look like.
While you have your own ideas, and you should definitely be thinking about ways to make the home your own, talking about big changes before the paperwork has been finalized has the potential to cause problems. It’s much better to keep quite about your ideas during the sale process and simply focus on closing the deal.
Many luxury homeowners have spent time and money putting their home together with their own style and taste in mind, and most think that is what the home should continue to look like.
While you have your own ideas, and you should definitely be thinking about ways to make the home your own, talking about big changes before the paperwork has been finalized has the potential to cause problems. It’s much better to keep quite about your ideas during the sale process and simply focus on closing the deal.
Maintain Your Relationship with your Real Estate Agent
Maintain a relationship with your real estate agent, even after you have moved into your new luxury home. Particularly if the agent was a great home buying guide, he or she might be able to help with other question that may arise over the course of your ownership.
From interior design issues to major home improvement contacts, your agent knows what’s available in your new community and how to find top service providers. This is particularly important for luxury homeowners, because of the specialized services often required for improvements and design. If the home is an older one, it’s often difficult to find quality craftspeople who are capable of working with vintage construction.
A big plus of maintaining a relationship with your realtor is that when you are ready to move, you do not have to begin a new relationship with a new agent – you can work with someone you already know and trust. An agent with whom you have stayed in touch will know what you are looking for in a luxury home and will work to continue to help you in your luxury real estate endeavors. In fact, we encourage our Elegant Homes agents to maintain relationships with past clients.
From interior design issues to major home improvement contacts, your agent knows what’s available in your new community and how to find top service providers. This is particularly important for luxury homeowners, because of the specialized services often required for improvements and design. If the home is an older one, it’s often difficult to find quality craftspeople who are capable of working with vintage construction.
A big plus of maintaining a relationship with your realtor is that when you are ready to move, you do not have to begin a new relationship with a new agent – you can work with someone you already know and trust. An agent with whom you have stayed in touch will know what you are looking for in a luxury home and will work to continue to help you in your luxury real estate endeavors. In fact, we encourage our Elegant Homes agents to maintain relationships with past clients.
Plan Ahead when Moving Art, Antiques
Once you have closed the deal on your new luxury home, your focus will shift to moving. Moving luxury items can be tricky, and it is important that it be done right.
For example, valuable pieces of art should not be moved by a moving company. Instead, work with the gallery or artist that sold you the piece. Ask them to remove the piece from your home, transport it, and rehang it in your new space.
Antique items are best moved by the homeowner themselves in a separate vehicle instead of being lumped in with the rest of the home furnishings.
Beyond art and antiques, you still need to work very closely with movers. Ask that your most fragile, expensive, and rare items be packaged separately. Oversee every aspect of the move to ensure that your valuables are moved carefully and properly.
For example, valuable pieces of art should not be moved by a moving company. Instead, work with the gallery or artist that sold you the piece. Ask them to remove the piece from your home, transport it, and rehang it in your new space.
Antique items are best moved by the homeowner themselves in a separate vehicle instead of being lumped in with the rest of the home furnishings.
Beyond art and antiques, you still need to work very closely with movers. Ask that your most fragile, expensive, and rare items be packaged separately. Oversee every aspect of the move to ensure that your valuables are moved carefully and properly.
Spacious Rooms Are Important In Luxury Home Designs
Size matters in your luxury home! An important home buying tip to remember is that one of the biggest measures of luxury is how spacious – vs. how large – your home is.
Square footage means nothing if it is all concentrated in one area of the home, especially at the expense of bedrooms and bathrooms.
Bedrooms in luxury houses should be spacious. Master bedrooms should actually be a suite of rooms, including a roomy walk-in closet and large master bathroom.
If your home is new construction, work with your builder from the onset to assure that bedrooms and bathrooms are large and airy with lots of built in closet and storage spaces. If you are purchasing an existing home, make the size of all of the rooms in your home a consideration when making your purchase.
Square footage means nothing if it is all concentrated in one area of the home, especially at the expense of bedrooms and bathrooms.
Bedrooms in luxury houses should be spacious. Master bedrooms should actually be a suite of rooms, including a roomy walk-in closet and large master bathroom.
If your home is new construction, work with your builder from the onset to assure that bedrooms and bathrooms are large and airy with lots of built in closet and storage spaces. If you are purchasing an existing home, make the size of all of the rooms in your home a consideration when making your purchase.
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