Purchasing a luxury home is a major investment. What qualifies as a luxury home varies from market to market. In most real estate markets across the US, luxury real estate starts at around $1 million. However, in certain markets the luxury real estate market begins at a higher price point due to overall higher home prices. In cities such as New York, Los Angeles, and San Francisco, luxury homes for sale usually command $4 million and up. With the high cost of these properties, some buyers may be looking to save. Here are three tips for getting a deal on luxury real estate.
When it comes to luxury real estate, timing is everything. Overall, selling a luxury home tends to take longer than selling a non-luxury home. After listing, the median home takes about 65 days to sell. Luxury homes, on the other hand, stay on the market for an average of 220 days. If a luxury home has been on the market longer than that, it could be priced too high or there may not be many who can afford the home in that market. If the sellers are eager to sell, it may be possible to get a better deal on the property.
Make An All Cash Offer
When it comes to high-priced real estate, many buyers need at least some financing. However, those who are in the position to pay for a new home completely in cash may be at an advantage. Sellers are often more likely to accept a cash offer over other offers that require mortgages. The reason for this is that it is quicker and easier to close on a home when cash is involved. Luxury home owners may be more likely to choose a cash offer even if it's lower than their asking price or other offers.
Another way to get a deal on a luxury home is by shopping seasonally. In most areas, homes will show better during certain seasons. If the buyer lives in an area that is most appealing during the spring and summer, purchasing in the fall and winter can be a good strategy. Homeowners may also be motivated to sell before the end of the year. An experienced real estate will help buyers determine which times of year they will be more likely to be able to get a bargain.
Getting a deal on a luxury home is possible. Buyers who are looking to pay less should consider properties that have been on the market for longer than average since sellers may be willing to go down on the price. Making a cash offer can also mean a lower price. Shopping seasonally is also a good strategy.