As a home buyer, you may be wondering if luxury home buying in South Jersey is so different from the purchase process of a standard home. Although the basic premise of the process is similar to purchasing a traditional house, there are several aspects that make luxury home buying in South Jersey quite different. It is important, then, to be aware of these differences, especially if you have previously bought a standard home and are now searching for a high-end house.
At Your Home Sold Guaranteed Realty - Nancy Kowalik Group, our team of real estate professionals is here to help you find the perfect luxury home for you and your family, and we will always happily provide you with all the information you need about the differences between buying a luxury home and a standard house. With our guidance and resources, we are sure that you will have the best possible home buying experience and can start living your new upscale lifestyle before you know it!
Why Buy a Luxury Home?
To begin, we will tackle the first question that many home buyers have: why consider investing in a luxury home? This is an interesting and important question because it will be part of the foundation for your purchase.
Luxury home buying in South Jersey means that you are looking to have a unique type of lifestyle that only an upscale home can provide. You are probably searching for a home in a specific area of South Jersey that is extremely desirable, and your ideal home likely has particular amenities and features that make it look and feel upscale. Whether you are looking for a beach house or acres of land on which to build a huge house or anything in between, it is important to enlist the assistance of an experienced realtor who is well-versed in the real estate market for luxury properties.
One of the important questions that home buyers ask our realtors is whether or not the process for luxury home buying in South Jersey is vastly different from the process for purchasing a traditional-style house. We have put together the following report to demonstrate the differences for home buyers to ensure that you are well-informed for your upcoming purchase.
The Process for Luxury Home Buying in South Jersey
When you are beginning the process of luxury home buying in South Jersey, it will be greatly important to get your financial situation in order. As with a traditional home buying process, taking care of the finances first will put you in the best position to make sure you are able to make an offer that is likely to be accepted by the home seller.
You should work with a bank that you already have a relationship with because they have your portfolio information and this will make the process smoother. Also, be sure you understand the difference between a pre-approval letter and a prequalification letter – this can make a big impact on your potential purchase. Having the right documentation will also be critical to demonstrate that you have the financial means to complete the transaction.
When you are searching for a home, it is vital that you work with a realtor who has experience, expertise, and connections in the luxury real estate market. Many homes are not listed on the typical home listing sites because the home seller’s privacy is of the utmost importance. Only a realtor with the right connections and knowledge of the market will be able to find you the best possible home, even if it is not listed for sale in the usual places. Our team has the necessary experience and knowledge to find you the perfect luxury home.
How Do Inspections Play a Role in Luxury Home Buying in South Jersey?
Like a traditional home, the process of luxury home buying in South Jersey should certainly include an inspection. A thorough and extensive inspection will reveal everything you need to be aware of regarding the condition of the home. While the inspector is doing the inspection, he or she will give you information about the home you are hoping to purchase and determine if it is truly worth the amount that the home seller is asking.
There are several unique features of a luxury home that will need to be inspected, but a traditional home inspection will not include these features. Some of the particular amenities include balcony foundation; vehicle drive port; pool, spa, bar, and game rooms; home cinema; fireplace; wine room storage; gardens; and recreation areas. With a proper inspection report in hand, you can feel much more confident when luxury home buying in South Jersey.
What Is the Current State of the Luxury Home Market in South Jersey?
Over the last few months, there has been considerable conversation about declining sales volume, plunging sales, and falling inventory levels as a result of rising interest rates. Thankfully, the last month has shown a slight turn in the markets toward positivity in regards to sales. The number of new listings hitting the market has increased and, best of all, sales numbers have increased as well. Experts are expecting home buyer demand to surge again as long as these trends continue.
Also, sales will likely continue with less competition and more competitive mortgage rates for affluent home buyers. Lenders are also offering other loan types to these individuals since there is less in those without significant wealth. Millennials are also growing the demand for luxury mortgages, so there should continue to be an increase in demand.
Common Mistakes in Luxury Home Buying in South Jersey
As with any home buying experience, there are common pitfalls that many home buyers face in luxury home buying in South Jersey. Some of the most frequently errors include:
Overspending and overestimating resale value
You may believe that a home is worth a certain price and that you can flip it for an even higher price with a bit of renovation. If you do not have a proper home valuation completed by a professional, you may end up overspending on that house and, therefore, overestimating the amount you could potentially make in resale. That is why it is critical to have a professional evaluation completed before you make the purchase.
Choosing the wrong location
When you buy a luxury home, it is not just the house you are investing in. It is also the neighborhood and its amenities. Before you make the investment, be sure you have searched the area’s crime rate, distance from important locations such as work and schools, and the nearby attractions. Without this vital information, you may end up regretting your choice.
Underestimating maintenance and repair costs
As with a luxury vehicle, buying a luxury home comes with a certain expectation of maintenance and upkeep. The cost of this maintenance may not be inexpensive. Very often, homeowners will hire professionals to clean the interior, keep the landscaping in good condition, and ensure that all of the home’s vital systems are in excellent working order. This all costs a significant amount of money, so be sure you are aware of the additional expenses related to the home.
Not getting pre-approval
Although you may be paying for the luxury home in cash, it is still important to acquire pre-approval. Why? Because many home sellers will only show the home to those with pre-approval to ensure they will be getting serious offers only. If you do not have that pre-approval, you may miss out on the perfect home for you and your family.
Working with the wrong realtor
As we have shown, there are many factors to consider when luxury home buying in South Jersey, so it is critical that you work with an experienced realtor who already understands all of these factors and can prepare you for them. We have the necessary experience and knowledge to find you the perfect upscale home.
Our Team Can Help You with Luxury Home Buying in South Jersey!
If you have decided that you want to invest in an luxury house, be sure you have enlisted the help of a realtor with ample experience and expertise in luxury home buying in South Jersey. At Your Home Sold Guaranteed Realty - Nancy Kowalik Group, we pride ourselves on our ability to guarantee our home buyers’ complete satisfaction during the luxury home buying process, and we will do everything we can to ensure that you find the ideal house for you and your family.
For more information about this process, simply give us a call at (856) 478-6562 or fill out the form below with the requested information. We are happy to answer any questions you may have and ensure you find the perfect upscale house in South Jersey. We look forward to hearing from you!