3 Luxury Home Buying Tips

Purchasing a luxury home is a major financial decision and investment that takes a lot of thought, planning, and the right connections. Prime real estate in top markets like New York, Los Angeles and Chicago start at around $5 million. Whether you're shopping for a luxury penthouse, or a mansion with an ocean view, you'll have a much better buying experience if you do your homework first and know what to expect. If you've made the decision to look at the luxury houses for sale, here are three tips to get you started.

Look for a Well-Connected Realtor

When searching for a luxury home, it takes a bit more searching than typical properties. When purchasing a standard home, for example, your agent is able to use multiple listing service, or MLS to find homes for sale that you may be interested in. However, luxury homes homes aren't typically found through MLS listings, as luxury home owners often want to protect their privacy. What this means for you is that you need to look for a well-connected realtor, since luxury homes are often bought and sold through personal connections your realtor has cultivated. Choosing a realtor who lacks the right connections may mean that you will have a limited selection of luxury homes to view. 

Don't Be Afraid to Negotiate

Luxury home buyers often assume that because they're purchasing a luxury property, there isn't room to negotiate. That couldn't be further from the truth and it's important that you make a sound decision and protect your investment by working with your agent to research comparable properties. Working together, your agent can tell you what comparable properties in the area have sold for and will advise you so that you can get the closing price right before making your offer. home. 

Have a Team

Access to luxury homes is more controlled in most real estate markets than when purchasing a standard home. That's why it's a smart idea to hire reliable advisers who will be able to get all of your documents in order and give you the proper advice. You'll need to be able to show the banks that you have a certain amount of wealth for the luxury properties that you're interested in. This means involving your accountant and financial adviser, as well as a well-connected luxury real estate agent. Many luxury homes are in very competitive real estate markets and very desirable areas, so not having the right people in your corner can mean the difference between getting your dream home, or settling for something else.