3 Key Steps for Purchasing a Luxury Home

If you have the money to move into one of the top homes in your local market, you are looking to purchase a luxury home, not a regular house. When buying a luxury home, there are a few keys steps you need to understand about the purchasing process.

Step #1: Understand Your Financing Options

When you start to get up into the range where you are spending over a million dollars to purchase a home, your financing will look a little different. You are not going to qualify for a discount mortgage, and any financial institution that offers you a mortgage will want to do a really deep dive into your financials to ensure you can back up such a loan. You will want to figure out your financing before you start to look into your luxury home market seriously.

Step #2: Hire a Luxury Realtor

Next, you are going to need to hire a luxury real estate agent. You will need to find a real estate agent who has access to pocket listings, which are properties for sale but are not available on the traditional MLS listing sites. Pocket listings are common for luxury homes, as the sellers may not want everyone to know they are selling their expensive home and may not want to share pictures and information about their home with the world. Many sellers also understand that the buyer may be looking for a more discrete buying process, and a pocket listing can help facilitate this.

You need a real estate agent who has the connections to get you into the top homes and who will be able to let you know about pocket listings you may be interested in.

Step #3: Have Some Patience

When looking at the top homes in your market, you need to have patience. High-end real estate doesn't go on the market every day like traditional single-family homes. It may take time for you to find a listing that you want and that fits your needs. Therefore, you should expect to put in some time finding the right home.

That said, when you find a home that you like, you are going to want to move quickly. You don't want to allow a luxury home, representing a tiny percentage of the market, to slip through your fingers.

If you want to purchase a luxury home, figure out your financing first. Then, find a luxury real estate agent who can get you information about pocket listings. Be patient in your search, and be decisive when you find something you like.

Talk to a real estate agent to find luxury homes for sale.