A luxury home is typically one that is priced in the top percentile of comparable real estate and which may offer custom features that are designed to enhance the home's appearance and comfort. If you have the money for luxury homeownership, you need to ensure you've done all your research about any home you want to purchase no matter its price tag and appearance. Note a few commonly asked questions about luxury homeownership so you can determine if it's the right choice for you.
1. Do luxury homes always hold their resale value?
It's easy to think that luxury homes are a good investment because they're more likely to hold their resale value, and while this may be true in some areas, it's not always the case. A home's resale value will always be affected by how many similar homes are on the market, if there are enough buyers interested in purchasing a new home, if mortgages are readily available, and the like. The home's features themselves will also affect its resale value, for example, a home may have many rooms and bathrooms and be very expansive but may have an outdated HVAC system and old alarm system. Potential buyers may be turned off by these things no matter how luxurious the home is otherwise.
2. Why isn't a lower level included in the square footage of a home, even though it's finished?
Very often a luxury home will include a finished basement or lower level, to be used as a family room or a "man cave." However, typically a home's square footage or size listing includes the levels above ground, no matter how finished and luxurious the basement might be; the only exception is if it's a walk-out basement. If you're shopping for a luxury home, be sure you understand how the size is listed so you can include the lower levels in your consideration for the home.
3. Why is a specialized agent recommended when buying or selling a luxury home?
You are free to use any real estate agent you wish when you want to buy or sell a luxury home, but note that there will be fewer qualified buyers for these homes than other types of homes on the market. A specialised agent will know how to pre-qualify potential buyers and how to find those buyers in the first place. You may notice when you want to buy a luxury home that you're asked about your income and lending options before you're even taken on a tour, and an agent will know how to find the right buyer for your luxury home when you're ready to sell.