A luxury home is an investment as much as it a necessity. One should always exercise due diligence before springing into a sale, no matter tempting a property may seem. Here are four things everyone should consider having done before they make a serious bid on a luxury property.
Get a Comprehensive Estate Inspection
Large estates have many complex components. A simple home inspection would be unable to evaluate them all properly. Find an expert who is qualified to inspect elements like:
- Lawn irrigation and sprinkler systems
- Heated floors or driveways
- Complicated security or surveillance systems
- Exterior landscape lighting
A thorough inspection will include the current state of each major component. It should give you a rough estimate for anything that will need to be repaired or replaced in the next ten or so years.
Get a Personal Appraisal
Chances are, any lender you wish to use will request their own appraisal. While these can be handy for determining your mortgage interest and lending amount, they may not have all the information you need as an investor.
Consider hiring your own separate appraiser who can calculate your new home’s value in the long run. They should be able to use historical data of surrounding areas and other similar properties.
With this information, you will have a clearer picture of how your home will appreciate over the years. An appraiser may even be able to advise you of scenarios that will increase the value of the property.
Consult Your Financial Advisor
Buying a home is a serious commitment. Many people think through the decision diligently on their own, but do not bring their financial planner in on the prospect until late in the game.
Ask your financial advisor what type of contribution you are able to set aside for your home’s down payment and mortgage. They will be able to offer their expertise on the best type of housing purchase for your equity and overall net worth. A good financial advisor will help you steer clear of any rash purchases that may benefit your comfort, but not necessarily your bottom line.
Have the Title Looked at Closely
Large or valuable properties have a lot more considerations when it comes to ownership. There are unexpected aspects such as mineral rights, encroachments and possible easements relating to the property. Have a lawyer familiar with real estate law examine the document to spot any potential areas of trouble.
Additionally, if your lender does not already require you to purchase title insurance, do so before closing. Title insurance will protect you from unintended consequences in a title’s wording or from any unknown liens the property may have.
For more advice on buying luxury Burnaby real estate homes, our team of experienced agents will be more than happy to serve you. Take a look at our buying page to find out more about how we can help you.