18 Tips for Luxury Real Estate Buyers

 

If you read many surveys of what luxury real estate buyers are looking for, which I do, you quickly recognize regional differences. You also notice that many luxury real estate buyers also chase some trends and some

silly things that might look great but just don’t matter. Do you really need a Zen park or an outdoor shower in an urban home? Probably not. And because these things are superficial and trendy, they will not add value to the property.

Generally in the Greater Seattle area a Luxury Home is defined as valued at $1 million or above. Defining a luxury home is not about size. Many condos and townhouses can be considered luxury property. Better determining factors are often location, property entry, architecture, décor, ceiling height, amenities, entertainment capability, grounds and other details that help a home stand out from the ordinary.

The next step is ultra-luxury. These homes are often considered smarter with these features: temperature controlled wine cellars, motion detectors, variable speed air conditioning, car lifts and home automation systems. Systems that control black out shades and window glass that can go from clear to opaque with the switch of a button. Security systems such as gates and fully fenced: people want to know that when they are home they are safe. 

So, what really matters in luxury real estate? What makes a home worth waiting for, worth paying more for, and worth searching for? Here are my 18 tips for luxury real estate buyers.

1. Location. Some Realtors will claim that location is actually the first, second and third consideration when buying luxury real estate. Location is about proximity to key local amenities, like parks, water, restaurants, shopping, and entertainment venues. Location is also about privacy and a place within a neighborhood of other luxury homes. Finally, location is also about the lifestyle you want: urban, suburban, rural.

2. Quality.  The quality of the structure should be the most important factor, but it is sometimes overlooked by buyers. If you are buying a luxury home, quality matters as much as it does in any

other home purchase, and probably more. You definitely want a home that is solidly built on a stable foundation, with quality materials and workmanship.

3. Work with a Realtor. Always work with a qualified, full time, experienced professional Realtor when buying luxury real estate. In particular, engage the assistance of an experienced Luxury Real Estate Realtor. We have the experience and the knowledge to value luxury properties accurately and we know how to identify the amenities and qualities of a home that matter as opposed to fads.

4. Unobstructed View. In the Seattle metro area, the desired views are typically of Puget Sound, Lake

Washington, or other bodies of water; of the Seattle skyline; of a park; or of Mount Rainier. It is not always possible to find a luxury home that offers an unobstructed view. The question is whether you are willing to accept a partial view. If the view is important to you, ask your Realtor about the likelihood of future construction blocking the view. Know the zoning laws.

5. Light. Natural light is important in every home. One of the amenities most buyers look for in luxury real estate is a design that allows light to enter the home. Abundant natural light is good for your physical and emotional health. It also improves the resale value of the home.

6. Architecture. Look for a design that is both livable and beautiful. Also, think about how the property will age over the next few decades. Good bones, uncommon architectural elements, high-quality materials, and fit with the landscape are hallmarks of good design.

7. Livable layout. Choose a floor plan that makes sense for your lifestyle. If you do a lot of entertaining, look for a floor plan that flows well. If the layout has a number of oddities that don’t make sense, it might not be a good choice.

8. Energy efficient windows. A home’s windows allow sunlight in, but they can also let in noise and outdoor weather. Look for double- or triple-pane windows with good insulation and a good warranty.

9. Decide whether you will pay cash or finance your purchase. Cash purchases are very popular today, but you might prefer to take advantage of low interest rates and keep your cash for other investments. If you are self-employed, you may decide that it is easier to pay cash than to work through the stricter mortgage loan process.

10. Have your financing in order early in the process. There are a number of sellers of luxury real estate that want to show property only to qualified buyers. Further, as is the case for any buyer, having the financing in place determines what you can spend on the property. This reduces the risk of unexpected issues in the transaction.

11. Understand that sales of luxury properties often take longer, up to 45 to 60 days to secure a loan. Understanding the process and the duration of the process of closing a sale avoids frustration and unrealistic expectations.

12. Specialized home inspections. A number of luxury homes require specialized home inspections. It will be important to budget for these and to allow sufficient time to obtain these inspections. Specialized home inspections might include those for a pool or spa, a fountain or pond, an exterior fireplace, outdoor electric or gas, lawn irrigation systems, a central vacuuming system, automatic screen and awning systems, heated floors and driveways, docks, security and surveillance systems, and landscape lighting. It is rarely advisable to skip any inspections when purchasing luxury real estate.

13. Understand the tax consequences of your luxury real estate purchase. You may need to think about tax liabilities and estate planning when you purchase. Always consult your tax accountant, your estate planner, and any other finance experts you talk with regularly. Their guidance will help you decide how to take title to the property. Because tax records are public, you might choose to protect your privacy and provide tax advantages by taking title in a trust.

14. Don’t ignore resale value. It is inevitable that the home will be sold eventually. Every home

purchase is a major investment and luxury homes are no exception. Discuss with your Luxury Realtor the factors that will affect the property’s resale value.

15. Get to know local neighborhoods. Each neighborhood has unique characteristics and character. Learn what you can about each neighborhood with luxury homes. Your Realtor will be able to help you with this task, and may have neighborhood overviews available for you. Your luxury realtor will be able to discuss recent changes and trends among buyers in each neighborhood. He or she will also be able to advise you if some construction is planned that might affect the amenities that are important to you (a view, for example).

16. Prioritize your wants and needs in your luxury home. I always try to make a prioritized list while talking with my clients, but it saves time and possible confusion if you make a prioritized list of the amenities you want and need in your luxury home. Some of the amenities that have been important to my recent clients have included:

Views of water or mountains

Home theater

Home gym

Privacy

Chef’s kitchen

Home office

Entertaining features

Top quality security and safety features

Smart appliances

Top architect or design

Water access/dock

Great decks

Exceptional landscaping

Great backyard

Pool/spa

Large garage

Sports area (tennis or basketball court, for example)

Patio

In-law suite

Second kitchen

                      Guest house

 

17. Look for Value. The fact that you can spend more doesn’t mean you should. Ensuring that you are getting value for your money is always smart.

 

18.Understand the responsibilities of owning waterfront property.  In many neighborhoods there are responsibilities of maintaining the property to a particular standard. Often these responsibilities are overseen by a homeowners association. Be certain that you understand the costs and responsibilities before you buy.

These tips are offered in the hope that they will help you prepare for your luxury real estate search and for the various steps of the transaction when you find the perfect property. These tips arise from my 20+ years helping clients as a professional Realtor. If you are ready to buy luxury real estate in the Seattle metro area, I hope you will give me a call. I would be very pleased to help you find the perfect property. And, remember: I’ll bring the coffee!