2020 was a challenging year for everyone except for real-estate agents thanks to low mortgage rates. These low rates spurred incredible market activity.
Though the rates rose in the early part of 2021, it’s still time to buy.
That’s right, and now you’re thinking about buying the home of your dreams. You’re talking about a palace, a mansion, a castle. You expect those types of homes to be out of your price range, though.
You’re right, but there are ways to find cheap luxury homes. Well, not exactly cheap, but cheaper. Check out these five tips for buying luxury homes without breaking the bank.
Find the Right Network
Luxury homes aren’t listed like other houses for sale. Occasionally you’ll see a news story about a celebrity selling theirs. The rest of the upper-class likes to keep their dealings private for security reasons.
Finding the right network for buying luxury homes means finding a great real estate agent who deals in luxury homes. They have the lowdown on unlisted high-end houses for sale that might get you a great deal.
Learn more about luxury real estate agents and what they can do for you.
Know When to Look
People who own luxury homes aren’t motivated to sell in the same ways other people are. Regular people are motivated by concerns like jobs in other cities or the need to upgrade or downsize.
When buying a luxury home, it’s important to understand what turns a seller into a motivated seller.
Those that are in the business know we buy luxury homes for far different reasons than the average person and sell them for different reasons too.
Most often, luxury homeowners looking to sell are motivated by tax concerns. That’s why the best time to look for real estate luxury homes is in the late fall and early winter.
These people want to get their sales in before the new tax year begins.
Finance With the Seller
It’s possible to buy a pricey luxury home even if you don’t have 20% to put on a downpayment.
With the help of your real estate agent and lawyer, you can negotiate for your seller to finance a portion of the mortgage.
How does this save you money? If you find a motivated seller who wants to get their luxury home off the books, they might want to do this at a negotiated interest rate lower than current market rates.
People who buy luxury homes sometimes do so even if they barely have the means. Lured by the lifestyle of the wealthy, they move into these homes living on a razor’s edge.
They end up not able to afford the mortgage and the house ends up on the foreclosure market. You can find a discount rate on these homes, and some banks will even float you a mortgage on them.
Keep Patient in Your Search for Cheap Luxury Homes
If you can’t find the right luxury home at the right price right away, don’t jump on the first one you can find. The current market and circumstances won’t exist forever.
Buying Your New Home
So much about finding cheap luxury homes is about finding the right seller and the right circumstances.
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