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Things to consider before investing in luxury real estate

Most people believe that a hefty price tag on a house makes it a “luxury” home. But there is more to luxury investments than the whopping asking price.

Luxury real estate is a combination of several things. From designer furnishings to high-end amenities, as well as the prime location and country club feel, a luxury home is more than just a place — it is an overall feeling of exclusivity.

Luxury homes come in many forms. Whether you are interested in a high-end apartment located downtown or an expansive mansion nestled in several acres of land, there are several things to think about before making the big plunge.

Consider building a team of professionals

Purchasing a luxury home is different from buying a mid-range property. For one, some luxury homes aren’t listed online. This is because high-profile individuals often own these properties. Listing their homes publicly isn’t the safest option.

That said, employing the help of real estate professionals is key to bagging the perfect real estate investment. A real estate agent who specializes in luxury homes in Williamsburg, VA will have a network that provides them with insider knowledge on available (or soon-to-be-available) listings.

Find the right location

Location is one of the factors that determine if a property falls within the bounds of “luxury.” It can drive property prices up or down. It can also impact your overall lifestyle. It affects your travel time, your school district, and your property taxes. Moreover, the neighborhood’s quality determines the return on your investment should you sell your property after a few years.

More than the home itself, it is a good idea to research the area and its surrounding communities. What does the next couple of years look like for the area? Are home prices stable? What are the future developments in the area, and will said developments improve the quality of your life should you choose to live here?

Settle on the type of property

Luxury homes come in various forms. It can be a swanky penthouse suite in a high-rise condo, a sprawling luxury estate on top of a hill, or a historic townhome, among other things.

The perfect one for you depends on your priorities and needs. Before reaching out to a professional luxury real estate team, it is best to iron out your preferences. Are you looking for a luxury estate to serve as your retirement home? Or are you searching for a luxury condominium in the middle of the city?

Deciding on the type of property you prefer helps you find the right real estate agent who can aid you in your luxury real estate investment. In turn, they’ll know exactly what to look for on your behalf.

See it for yourself

Pictures may be worth a thousand words, but when it comes to luxury properties, it’s still best to see these in person. Set up an appointment to visit the property and make sure to follow health and safety guidelines. Take pictures and ask questions.

Don’t limit yourself to the actual home. Ask if you can see the grounds and the surrounding areas, as well.

You also don’t need to always enter the home just to have a feel of what it’s like living here. You can also make a drive-by at different times of the day just to find out things like the extent of traffic to and from the area or the overall community vibe.

Prepare your must-haves

A hefty budget allows buyers to have a list of home must-haves. Having a clear idea of what your dream property looks like and what you need to see in it can help you make the right purchase decisions.

Think of it as going to the grocery with a list versus shopping without one. This list makes your search more efficient and can save you from mistakes like buying a home with a massive pool when you’re not into swimming at all.

Check out foreclosed properties

You don’t always have to spend a huge sum of money to invest in luxury real estate. Try checking for foreclosed luxury properties in the area. These homes are usually being sold below their actual value and can be financed through several options.

This route is something to consider, especially if you are planning to flip the property then sell it for a profit.

Discover luxury homes for sale in Williamsburg, VA

If you are currently in the market for a luxury investment in the Williamsburg, VA area, our team at Coldwell Banker Traditions can help you explore your options. Reach us at 757.229.9595 or info(at)cbtraditions(dotted)com to learn about your luxury real estate options within the Historic Triangle.