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6 Things You May Not Know About Buying Luxury Real Estate

6 Things You May Not Know About Buying Luxury Real Estate

  • Claire O'Connor

You’re ready to find a new home. You have stellar credit, your finances are in order, and you have a good grasp of the buying process. However, you’re still struggling to find the perfect fit. Finding the ideal luxury home takes more than basic market knowledge and motivation. Luxury home buyers must be ready for anything, including bidding wars and negotiations. With proper planning and know-how, you’ll indeed find a picture-perfect home where you’ll make everlasting memories. Read on to learn some invaluable tips for finding the luxury real estate of your wildest Southern California dreams.

Timing matters

Timing your home purchase correctly is crucial. When the demand for homes is low, it’s easier to get a great bargain. Alternatively, if the market is hot and pricing is a bit high, it’s good to scope out your home options off-season, usually in winter. People rarely visit homes for showings during the colder months, especially since the holidays are coming up. Wintertime is when people spend most of their money on holiday-related goods. Another great reason to look for luxury Pacific Palisades real estate during winter is owners of luxury estates will often want to sell their property before the new year to avoid paying taxes on it come tax season.

Photos don’t capture the whole story

Home buyers often take to their computers when beginning their home search. They scroll through countless listings and may overlook luxury homes that don’t have the best photos. However, it’s crucial not to judge a property based on photos alone. Some luxury estates are challenging to photograph, given their size and features that images simply can’t capture. It’s also worth noting that photo editing software can make any home look appealing, especially when a professional photographer takes the pictures. Seeing the luxury home in person is the only way to genuinely experience the house and see if you get that feeling where you just know it’s “the one.” In addition, seeing the property first-hand gives you a chance to see the layout, feel the energy, and make sure the property aligns with your design needs.

Research the area’s past and present

Avoid making an irreversible and costly home purchase mistake by peering into a property’s past and present. The last thing you need is to pour your life savings into a mansion only to find out it has a less-than-savory history. Conversely, it’s crucial to look into the area’s plans for expansion and development. It will be a huge letdown if you move into a stunning waterfront Pacific Palisades home only to find out later that a new building will be blocking your balcony’s panoramic ocean view. Another thing to consider is the potential for coastal erosion down the line. These are just a few factors to consider when researching neighborhoods during your home search.

Find a motivated seller

One surefire way to assess whether a seller is motivated is by looking into the property’s listing history. For instance, if a property has been sitting on the market for months without any price adjustments, the seller may be too optimistic and unwilling to budge on the price. People can be motivated to sell for various reasons, ranging from relocation for work to the threat of foreclosure. The main signs to watch for include the seller’s timeline, price, and terms. If they wish to sell the Santa Monica real estate swiftly; offer low to no interest or no down payment; or are willing to set the price below market value, you’ve found yourself a motivated seller. When working with this type of seller, your chances of closing go up significantly, as they will negotiate with you to ensure all parties are satisfied. Ask your real estate agent for additional tips for finding motivated sellers.

Make a decisive offer

Making an offer with minimal contingencies and restrictions will surely appeal to the seller. As you would like the transaction to go as smoothly as possible, so does the seller. The more appealing and straightforward your offer, the better your chances are of closing the sale. Some ideas for making your offer attractive are offering a large earnest money deposit when signing the contract, submitting the offer quickly, and having your agent find out the seller’s motivation so you can adjust your offer as needed. Ensure that everything goes your way by getting preapproved for a mortgage and getting your finances to make your bid stand out among the rest.

Foreclosures are a great value

One way to find a luxury estate up to 15% below its value is by scoping out foreclosed homes. When people think of foreclosures, they imagine buyers only pay cash upfront, but that is not always the case. There are several options for purchasing a foreclosed home, including a short sale, bidding at an auction, and purchasing directly from a lender. No matter how you buy one, getting a home appraisal and inspection is essential before leaping. You want to make sure the property is worth the set price and that there are no foundational issues or other repairs that need handling before you purchase the property.

Work with a local real estate agent

When finding luxury Pacific Palisades real estate, working with a local real estate agent will garner optimal results. Claire O'Connor provides local expertise and strong negotiation skills, qualities you’ll need when seeking luxury real estate in West LA. Contact Claire today to assist with all of your Santa Monica, Brentwood, and Pacific Palisades real estate needs.

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With ten years of professional experience, we have mastered the art of negotiation through dealings with high-level bureaucrats and diplomats regarding US foreign investments. We bring that required tenacity to real estate negotiations on behalf of our clients.

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