MAKING AN OFFER ON A UNIQUE HOME

Negotiating the purchase of a very special luxury home is a fine art.   Only a qualified real estate agent with a reputation for closing high-end transactions can negotiate the best deal with the necessary expertise, sensitivity and discretion.  Well-informed buyers can also facilitate the process.

Before you make an offer on a home you wish to buy, schedule professional inspections of the house, fire, security and septic systems, so you have an objective evaluation of the condition of the home and grounds.  Have an attorney review the title search and clarify any outstanding issues relative to easements, boundaries, water and mineral rights or liens against the title.  When you draft your offer, try to avoid contingencies that may complicate or delay the sale.  Read the seller’s disclosure statement carefully, and ask your agent to explain any items you don’t understand.  Set a limit on the maximum dollar amount you are willing to pay for the property, so your realtor is operating within pre-established guidelines when negotiating price on your behalf. 

Stay in close communication with your agent while the terms of the offer are being resolved.

WHY GET PRE-APPROVED TO BUY A LUXURY HOME?

Realtors are often reluctant to ask high-end homebuyers if they have been pre-qualified by a lender.  They know that, for many buyers, the availability of cash will not be a problem.  If the agent does not pose the question, he or she is violating fair housing laws.

Many luxury homebuyers want to present a letter from their accountant confirming their solvency.  However, this can alert the seller to the fact that you are well able to pay their asking price—and more, which leaves less room for negotiating the price and terms.

A better strategy is to become pre-approved by a lender who will simply tell the listing agent that your credit scores are acceptable and your cash reserves are adequate, without disclosing the details.   By getting pre-approved you are guaranteed that the lender will provide you with the loan and protect your privacy.  The seller and the listing agent do not need to know your true buying power.

THE LATEST TRENDS IN LUXURY HOME DESIGN

What features are fashionable homeowners choosing to include in their newly built upscale homes?  Let’s take a look at what custom home clients consider the latest necessities of life.

Topping the list are the best home security systems, complete with camera surveillance viewable on all of the television sets in the home and walk-in safes.  This feature reflects the widespread concern for personal and family safety among high-end homeowners. Custom-designed entertainment areas with multiple kitchens, indoor and outdoor living rooms and playrooms for children are popular.  Homes with multiple levels may include a roomy garage that accommodates guest parking, indoor basketball or tennis sport courts and elevators that serve all levels of the residence. 

Areas that allow homeowners to pursue their favorite leisure activities are being requested more frequently in new custom homes.  Buyers want fitness workout rooms, home gyms, indoor and outdoor lap pools, spas and sports bars with plasma TVs where the latest sporting events can be viewed in style.  Massage rooms, steam rooms, yoga and meditation spaces are other amenities that are in high demand.

Building or buying a home with these features can improve the resale value of your property.

INSURANCE CONSIDERATIONS FOR LUXURY HOMES

When you own a property that is valued in the millions, insurance risk management reaches a whole new level.  The typical policy coverage is not sufficient to guarantee peace of mind for those with larger estates, multiple properties, yachts, classic automobiles and valuable collections of jewelry, art and antiques.

High-end homeowners want extended property and liability options that are not provided with most “brand name” insurance policies.  Many owners of trophy homes need individually tailored plans that will cover expenses associated with identity theft, background screening of household employees and security system planning and updates.  Expensive home furnishings, jewelry and art collections must be meticulously accounted for in the detailed documentation of the contents of each home.  Affluent homeowners may want to select from a broad schedule of deductibles based on the calculated risk for each property.  Above all, the range of client services offered by the insurance company should ensure that each homeowner feels utterly confident in both the level of insurance protection and the management of the policy.

Ask your real estate agent about insurance carriers that specialize in the luxury marketplace.

LUXURIOUS CLOSETS

In today’s luxury real estate, closets are becoming as important a selling point as high end kitchens and spa-style bathrooms.  The latest in closet design supports the active lifestyle of affluent homeowners on the go, by playing a big part in organizing their busy schedule.  What once was a small storage space off the bedroom has grown into a richly appointed room of its own.

Custom designed closets have improved on the original “dressing room” of the past, outfitted with every amenity imaginable. Along with state of the art storage and display of clothing, a well equipped closet might also include a leather dressing bench, exercise machines, a granite topped coffee bar, a flat screen television, and even a second washer/dryer unit.

The new closets can range from 50 to 400 square feet in size and are outfitted with luxuriant custom cabinetry that efficiently organizes clothing for all occasions.  Some have a revolving center island that displays shoes and accessories. Flattering lighting and full-length mirrors are also a high priority.

When it comes to comfort and efficiency, the new closet is becoming one of the most used rooms in the house.  As one closet lover remarked, “The closet is a luxury I use every day ─ you can avoid cooking if you want, but you always have to get dressed.”

LOCATION IS KEY IN LUXURY MARKET

Valuation of any home takes into account its size, features, condition and location.  Of these factors, location is the one element that cannot be altered.  A home in a high demand location will always represent a greater market value than a comparable home in a less desirable location.  Buyers who can afford to pay top dollar for a select property usually choose homes priced in the top ten percent of the market in the finest locations. 

Proximity to the finest goods and services is important for luxury homebuyers who maintain an active social calendar.  These buyers want access to high-end boutiques, five-star restaurants and catering, spa facilities and cultural venues such as theater, concerts and art galleries. Upscale home and condo prices have skyrocketed in and around many of the nation’s predominant cities and associated suburban areas. 

Locations that offer recreational opportunities in beautiful natural surroundings are another strong preference for luxury homebuyers. Properties in neighborhoods that offer exceptional views of the most interesting local scenery are also in high demand. Second-home investments keep property values on the ascendant in many of these areas.

The best locations offer the best real estate investment potential.

AMENITIES IN TODAY’S LUXURY HOMES

Fancy master bedrooms, complete with a bedroom kitchen and sitting room, is a popular home amenity with today’s affluent home buyers, according to a report in a recent issue of Unique Homes magazine. The publication lists 35 of the most sought-after amenities in today’s luxury homes.

Decorative glass tiles are in, as are special features made from unique and exotic woods. A private spa has almost become a basic feature in upper-end homes and showers must have all the bells and whistles with multiple sprays and shower heads and even waterfall fixtures that mimic rainfall.  Upscale kitchens often include a butler’s Pantry, along with state-of-the-art upgrades in standard features such as drawer refrigerators and drawer dishwashers.

“Smart-house” technology is an integral part of luxury homes and high-tech home offices are standard with many featuring dual “his and her” spaces.  More sought-after amenities are exercise rooms, special “meditation spaces” and home theaters.  The most dramatic changes have appeared in garages.  They’ve become huge, accommodating many vehicles (or a lot of toys) and may include cabinet systems, artistic flooring and appliances. In addition to lush landscaping some homes have “putting greens” or a private golf course, a stocked fishing pond, or a deep-water dock in the case of a waterfront home.