7 Secrets Luxury Home Buyers Need to Know What first-time home buyers need to look for when marketing their first home investment
By Chris D. Bentley Edited by Micah Zimmerman
Opinions expressed by Entrepreneur contributors are their own.
The millennium brought about so many first-time home buyers across the globe deciding to go big. Many young generations no longer depend on the old folks for shelter. They have now moved into making huge investments at once. Unlike the older generations' approach of starting small and growing gradually, the modern first-time home buyer has more risk appetite and is making big decisions.
Nonetheless, it is crucial to analyze the market trend, highlight the home buyers' tastes and preferences, have a contingency budget, review the property location, conduct due diligence on the realtors and have an informed review.
Related: 4 Lessons I've Learned in 10 Years of Building a Luxury Real Estate Brokerage
1. Analyze the market trend
It's not all that glitters is gold. We all like taking photos that highlight more of our solid features and less of our weaknesses. The photogenic approach taken on a property often does not highlight everything. It's paramount for the buyer to visit the property and do their reality check. Sometimes real estate agents modify photos to show bigger spaces, great interior designs, and features, which may not be the case in real-life situations. Before making that significant decision, it's essential to visit the site before reaffirming your decision.
Besides, the pricing often is used to entice the buyer into purchasing the property. Although it's believed that the higher the price, the more sophisticated the property is. Nonetheless, that may not be the case. Therefore it is essential to compare the market trend, pricing and photos and do a reality check before moving.
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2. Highlight your taste and preference
Purchasing your luxurious home requires a considerable investment. The chunk of money to be invested should correspond to satisfying your desires on what and how you want your home to look. It is important to emphasize to your realtor what features are most important.
3. Create a contingency budget
As much as your most preferred luxurious home may look, it may not have all the features you may require. As a result, it is crucial to set aside some contingency funds to cater to what is missing. Contingency funds are also significant to cater to additional costs, which the realtor often does not highlight at the purchasing time.
4. Review the property location
Purchasing a house is a big decision and should therefore require enough due diligence before purchase. As a result, it's essential to get to know your neighborhood, how secure it is and if it's a beach house, the distance from the beach, and the strategic location to all the essential facilities such as the market, school, hospital and recreation places. Infrastructure, accessibility and drainage are also some of the vital features to take into consideration.
5. Know your realtor's experience
Purchasing your luxury home through a highly experienced realtor will guarantee efficiency in your home ownership journey. The National Association of Realtors offers certification to ensure home buyers deal with highly experienced real estate agents. The realtor should be attentive to fine details about the exact specification of the features that the home ought to have.
An experienced realtor would be mindful of the standard prices for the apartment, which would help them negotiate for you a fair price. You want to purchase a home that meets the government's housing construction standards. Buying an apartment that does not meet the housing construction code puts you at risk of demolition. An inexperienced realtor would not be able to draft binding contracts with the building's seller risking you losing your house.
Related: How to Up-Level Yourself as a Realtor
6. Do a thorough investigation of the home
Require analysis to establish that the home does not have faults that could further cost you. Electricity connection checks are paramount because having flaws could cause a fire outbreak that could destroy your apartment, leading to financial loss. You also need an engineer's recommendation to understand whether the building's foundation was rightly constructed. Cracks in the foundation or the walls could cause the building to collapse, leading to losses. Before purchasing your luxury dream home, it would be necessary to ascertain whether the construction adhered to due diligence.
You should also assess the security of the area where you intend to purchase your dream home. The government's insecurity data would help ascertain whether the place where your luxury home is located is safe. The government's crime rate statistics would help you identify areas prone to burglaries and assault. Purchasing a home in an area with a high prevalence of crimes would cause you to live in constant fear, denying you peace of mind.
7. Your realtor's review matters
Many realtors are driven by their gain more than by giving their clients what they want. Therefore, the home buyer must do a background check on their realtor and their reviews.
