The high-end real estate market is an exciting and vibrant sector with an array of stunning luxury homes, each boasting unique design features, fantastic amenities, and privileged locations. According to the National Association of Realtors, the US real estate market is poised to regain normalcy in 2023. In this context, prospective luxury homeowners need to be prepared for a competitive market, demanding savvy strategies, and detailed research. This article will guide you through how to buy a luxury home and offer luxury home-buying tips to secure your dream home.
Fast Facts about the Luxury Home Market
According to Pacaso, there's been a significant surge in luxury home sales. Luxury single-family homes spent an average of just 11 days on the market in 2022, compared to 38 days in 2021. These properties had a sales ratio of 66.42% in February 2022 (above 20.5% is considered a seller's market), reflecting the high demand for upscale homes.
Luxury home sales increased by 41.6% in 2021, outpacing mid-priced (5.9%) and affordable homes (7%). The Southern U.S., in particular, saw a notable increase, with Austin, Texas, and Miami seeing a substantial rise in luxury sales. The average luxury single-family home listed in January 2022 boasted 3,335 square feet, although this varies by location.
Interestingly, as remote work becomes more prevalent, the demand for second homes is rising, with millionaires owning an average of two homes in 2018. Given the increasing demand and the substantial increase of 14.7% in luxury home prices between 2020 and 2021, it is more crucial than ever for prospective luxury property buyers to be well-informed and prepared.
Practical Advice for Luxury Home Buyers
Locating the Perfect Luxury Property
One of the most important things to consider when buying a luxury home is the location. With luxury properties, the value often lies not just in the house itself but also in the neighborhood, the views, the proximity to amenities, and the amount of land. Remember, while houses can be updated or redesigned, the location is one thing you can't change.
Classic Home Design Features Are Worth It
When considering luxury homes, opt for properties with timeless, classic design features that will age well. These characteristics lend a sense of elegance and permanence, even as interior design trends come and go. As tastes change, a luxury home with timeless design features will remain desirable and maintain its value.
Conduct Thorough Market Research
Before purchasing any property, conduct thorough research on the property’s market value. Your real estate agent can be instrumental in providing comparative market analyses to give you a better understanding of home worth in your chosen location.
Be Aware of Potential Long-term Risks
When purchasing a luxury home, consider any long-term risks associated with the property. This can include everything from the potential for natural disasters to future construction plans in the area.
Factor in Maintenance and Upkeep Costs
It's essential to calculate the costs associated with maintaining and updating the property. Luxury homes often come with amenities like pools, spas, gyms, and large yards, all of which require maintenance.
Evaluating Open Concept Possibilities
Open-concept plans are a popular feature in many modern luxury homes. However, depending on the layout and structure of the house, creating an open floor plan might not always be feasible. Consulting with an architect or builder before purchase can provide clarity on this.
The Home's Amenities Matter
Look for luxury properties that offer the amenities you desire, such as a wine cellar, home theater, gym, or pool. While these features can increase the property's value, they should also align with your lifestyle and preferences.
Consider the Community Around the Property
The community around your potential home plays a significant role in your overall living experience. Whether it's nearby recreational facilities, shopping centers, schools, or the neighborhood’s character, these factors can impact your satisfaction with the location.
Financial Implications of Luxury Home Ownership
Keep in mind the financial implications of your purchase, including taxes, insurance, and mortgage terms. A trusted financial advisor can help you navigate these considerations.
The True Value of Luxury Home Ownership
In considering whether buying a luxury home is truly worth it, the answer is deeply personal. It depends on your financial capabilities, lifestyle preferences, and future plans. While the higher price tag of luxury homes can be daunting, they also offer incredible amenities, additional space, and often, prestigious locations. Understanding your needs and desires, coupled with careful planning and expert advice, can guide you to an investment that brings great joy and long-term financial growth.
About McCooey-Olivieri Team
New York natives, Alexander and Patrick, descend from a lineage deeply rooted in the city, their knowledge of the area stretching back to their 5th and 6th generation ancestors. As part of the McCooey-Olivieri Team, they put their clients' needs first, providing a seamless transaction for both first-time and experienced home buyers and sellers.
Committed to client education, they ensure that every individual understands the intricacies of their real estate transaction, fostering a relationship based on integrity and professionalism. In response to New York's real estate demand, they expanded their team in 2020, bringing together eight professionals with more than half a century of combined experience.
Today, the McCooey-Olivieri Team covers regions from Manhattan to The Hamptons, employing cutting-edge technology and innovative strategies to exceed clients' expectations. Acknowledged among the top 1.49% of medium real estate teams countrywide by Real Trends in 2021, the team continues to make its mark in the luxury real estate market.
If you're looking to buy or sell a home or have any questions about the Garden City, NY, Westhampton Beach, NY, and Manhasset, NY real estate market, contact McCooey-Olivieri Team today.
