Regardless of the lackluster general housing market, the market for high-end luxury properties still has its sizzle. Premier, trophy properties will always maintain a certain cache, and those who are savvy enough to be buying today are securing not only incredible homes but also the incomparable lifestyles they evoke — for great values. In short, the market for luxury properties is still very active.
The good news is that there are many incredible buys out there for luxury properties, but purchasing a high-end home is a different ball game and comes with certain challenges that simply aren’t faced at lower price ranges.
The principals of Concierge Auctions have facilitated the sale of over $2B in luxury properties over the past 10 years, both through auction and traditional sales. Wherever (and whenever) you plan to buy your first (or next) luxury property, here are five tips we have put together for you to consider:
5 Tips for buying luxury properties
1. Envision your desired lifestyle: The first step is deciding the type of lifestyle you are searching for. Will this be a primary residence in a metro area near your business, or will it be a vacation home? Toes in the sand, ski chalet or “home on the range”? Particularly when it comes to second and third (and fourth and fifth) homes, many luxury buyers are not geographically-bound but rather have a clear vision of how they want to enjoy the property. Let your mind wander, but in addition to the property type, hone in on the detailed aspects that are important — gated, maintenance-free, kid-friendly, etc.
2. Explore target communities: Next choose neighborhoods or communities that fit your lifestyle preferences, and start to follow sales in the area. If you know specifically which local market you want to choose, then this will be easy. However, if you’re like many of our “opportunistic” clients and for example are searching for a premier ranch, then you might be following properties throughout Wyoming, Colorado, Montana AND the Lone Star State. Overwhelming? The next point will help…
3. Hire a broker or agent: In median home price points, buyers will choose one local broker or agent to help with their search, and you should too if you’ve narrowed yours down to one particular market. However, if you’re still in the lifestyle search, then find an agent who works and/or refers buyers throughout the region. This trend is growing, and many agents have licenses in multiple states and strong referral networks. Regardless of the specificity of your search, an agent who specializes in the luxury home sector is a must. They will know the market dynamics and have more access to the luxury homes that are available, thanks to relationships that they have already built with other luxury brokers and sellers.
4. Ask about luxury property auctions: At Concierge Auctions we specialize in real estate markets that have a high propensity of luxury properties. There are a lot of high-end sellers who choose the real estate auction route, as auctions are the best way for both the seller and buyer to get a fair market price in the quickest amount of time — without headaches. Who wants to overpay (or be underpaid) for luxury properties? Bye bye negotiations, inspections, repairs and re-negotiations!
5. Tour and inspect the property: Take time to tour the property, and hire a professional inspector to scour the details. The beauty of luxury properties is in the surroundings, but sometimes the devil is hiding in the details. Make sure the construction is sound, the pool is running properly, and that the security works. You are already paying a lot for a luxury property, and you do not want to spend money on updates that could have been addressed prior to the sale. Back to the lifestyle: If you’re a golfer, play the course. If you’re looking in a gated community, ask for a day pass to explore the amenities. There’s no harm in asking, and if you prove you are genuinely interested and capable, they’ll figure out how to make it happen. {Enjoy!}
Buying a luxury property at auction? Download 24 FAQs to buying real estate at auction:
