From financial planning to house hunting, here’s what you need to know about buying a luxury home in New Jersey.
- Cast a wide net
Most buyers start their search online, but the majority of luxury listings don’t appear on the MLS. High-end sellers have privacy concerns, and few of them are willing to post extensive photos of the property online. Gain access to off-market listings by working with a well-connected Realtor. They can show you luxury listings that match your criteria and schedule a tour of the homes you want to see.
- Make a list of must-haves
New home features are constantly being introduced in the luxury market, so narrow down your choices by making a list of must-haves. Roof decks with heated pools will heighten your appreciation of New Jersey’s suburban landscape while wine cellars and professional-grade kitchens will help you host your next dinner party in style. Talk to your Realtor about the kind of amenities you want in your home so that they can present you with listings that can accommodate your lifestyle.
- Make sure you choose the right neighborhood
Buying luxury real estate goes beyond owning a wonderful home – it’s also about having a prestigious address. That’s why it’s important to work with a Realtor who has in-depth knowledge of the New Jersey neighborhoods you’re interested in. Your Realtor should be able to provide you with information on the school district, local zoning laws, homeowners associations (HOAs), history, private clubs, and recreational facilities. Ask them about any planned developments that might affect property values and your enjoyment of the home.
- Go on detailed property tours
Some buyers, particularly foreign property investors, make blind real estate offers, or offers on a home they haven’t seen. This is done for speed and convenience. Often, these buyers will take a quick look at the property on Google Street View or entrust the decision to their representatives.
But if you intend to use the home as your primary residence, it is worth an actual visit before you decide to buy it. Most luxury listings can only be viewed by appointment, so your Realtor will schedule your visit. Ask them to come up with an itinerary so that you can visit multiple homes in one day and make the most of your time.
- Secure financing
Strict lending restrictions don’t affect the luxury market as much as the general market, since high-income buyers aren’t connected to the subprime market, which is the market for borrowers with limited credit. High-income buyers either pay cash or secure jumbo mortgages from leading financial institutions.
A jumbo mortgage is a home loan that exceeds conforming loan limits. You can qualify for one if you have a lower debt-to-income ratio and a higher-than-average credit score, and if you can afford to put down a substantial down payment.
- Make a strong offer
When it comes to luxury listings, sellers usually aren’t in a hurry to make a sale. They often have the financial capacity to hold on to the home for longer periods until they get the offer they want. They also care about buyer prestige – there are sellers who will only transact with high-profile buyers. Your Realtor will help you craft a strong offer and play up your worth and value as a buyer.
Let Haus Agency help you find your dream home. Call 201-636-2537 or send an email to barbara(at)yourhaus(dotted)com