There is no doubt that the real estate market is one that provides a lot of potential and this is something that is becoming increasingly evident in the luxury homes niche. In recent times across the US, the buying and selling of luxury homes has propelled to the point where records are being made.
In California for example, year 2016 saw homes going for prices above the $2 million mark and this was a good sign that the state was well on its way to recovering from the foreclosure crisis of previous years. As a result of this recent turn of good fortune, it is best to arm yourself with enough information on how to go about buying a luxury home.
Buying a luxury home differs from the normal transaction and processes that occur when acquiring commercial properties. This is so because when looking for a home 90% of buyers use the internet as a source while a good 43% of these individuals actually go ahead to make purchase based on the information gotten online.
Unfortunately, this is not a luxury afforded for luxury home purchases as the internet cannot be relied upon to providing valid information and this s a disadvantage for luxury homebuyers. Most times, the high-end properties also do not make their way to the MLS or search engines because the sellers prefer to protect their privacy.
The following are the options available when buying a luxury home:
Find a Qualified Luxury Real Estate Agent
Your best bet when trying to purchase a luxury home would be to get a real estate agent who has carved a name for him or herself in this niche. The luxury home agent should be one that is well versed with the market, has connections and knows the right properties that are on sale. This helps you shift the burden of researching to the real estate agent. Beverly Hills real estate agents are countless, however, there are a select few who know what they are doing. Thus it is imperative that you do your research on them.
The agent who is well versed with the ins and outs of the market is most likely to have information to properties that do not appear on the MLS listings, not on the open market and on search engines. Valuation of the market value of the luxury property is also something that the luxury real estate agent should be able to carry out using different methods so that you can attain a budget for it.
Financing is something that is not easily acquired in luxury home purchases as it can take a period of 1 to 2 months to acquire a loan even if your credit rating is pretty good.
The length of time it takes to acquire a loan can affect your chances of acquiring the property seeing as the seller of the luxury home would only be interested in individuals who can pay up when he or she requests so. It is advised that when engaging in luxury home buying you get a mortgage broker, personal banker or loan officer get your papers in order and attain approval on your loan request before starting the process of purchase.