Luxury homes are a wonder to look at when buying a property and make up only a small portion of the real estate market. The market ebbs and flows with luxury homes, which means when one is available, you want to be ready and make an offer if it's right for you.
Whether you want to invest in luxury homes as a business venture — perhaps to turn them into rentals, vacation homes, or air b&bs — or you're looking at luxury homes for sale in your area out of curiosity or to buy your first home, here are things to prepare for when you look at these properties. This way, you can also be prepared to make an offer should the opportunity arise.
Prepare for negotiations
You're more likely to not have many luxury homes for sale on the market when you start looking in this real estate demographic, which can be both great and subpar for you. It's great when luxury homes are available in high volumes on the market because then you can negotiate a price that works more in your favor, particularly if you have your eye on luxury homes that have been on the market for a while.
Keep in mind, however, that if there are only a few luxury homes on the market, you may have other buyers interested in any property you want to look at. To negotiate the best price for luxury homes in this situation, be prepared with a cash offer to really get things moving.
Prepare for different home insurance and property taxes
If you have never owned luxury homes before, then you want to know that buying these kinds of properties can mean higher property taxes and home insurance rates than traditional homes. The size and value of the luxury home you buy will determine much of these rates, and additional features common to luxury homes, such as swimming pools, hot tubs, and other features, can drive home insurance rates up.
Prepare for ongoing home care
Ongoing care needs often come with luxury properties. You might buy a home that has an ornate landscape or water feature that needs special attention or buy a home that is so large it takes multiple days to clean. Ask your realtor if the luxury home you're looking at currently has employees such as landscapers, maintenance crews, and housekeepers so you know what type of expenses you'll have to expect when you buy a luxury home yourself.