Buying a luxurious property in the USA can be a complicated affair. Right from the paperwork to finding the right customer to finally clinching the deal, it is imperative to follow the correct steps so as to get the best possible deal.
Here are 5 tips that you can follow to ensure that the property buying process is a smooth one.
1. Do Proper Research
Make sure you have done proper research before finalizing on a property. Do a quick survey of the market online to get a better picture about the kind of properties that you want to buy. Dare to go beyond the photos of the property that are available online and go check out the property yourself to see what you’re in for.
View the property on Google Earth, check out the vicinity and then go make a physical visit to understand the feel of the neighborhood. Often, in order to protect the seller’s privacy, luxury properties go unlisted. In that scenario, you may have to use the personal connections of the realtor, rather than completely relying on online sources.
2. Find a Local Agent
Find a local good agent who is familiar with the area in which you want to buy the property and then use his skill and expertise to gauge it. A qualified real estate agent who knows the luxury market well will be able to find you properties that are on sale but that might not be easy to find because of privacy concerns.
An agent who is familiar with the luxury market will have inside information about potential listings, and will help you to correctly determine the market value of the property. He will give you the estimated prices which similar properties in the area have fetched, as well as give you options to explore before zeroing in on a particular property. One such agent is the Kale Realty company. As they employ hundreds of brokers all over the Chicago region, you are certain to find an expert in the type of property and location you are looking for.
3. Proper Documentation and Financing
Make sure the documentation in order, the ownership of the property is secure and there has been a clear title. Because there is often high scrutiny in the luxury property market, make sure that all your financial documents are in order. It is important that you also approach a bank early on and get your documents ready because the loan process for luxury properties is longer than for smaller mortgages.
You could also have a loan officer, a mortgage broker or a personal banker to obtain your financing approval early on. Understand the difference between a pre-approval letter and a prequalification letter before you jump on to the transactions.
4. Due Diligence
Take out the time to properly inspect the luxury property before making a purchase decision. Make sure you do specialized inspection on amenities like lawn irrigation systems, exterior fireplaces, pools or spas, automatic screen or awning systems, landscape lightning systems, fountains and ponds, surveillance and security systems, central heating and vacuum systems, or heated floors and driveways. Doing this will ensure that you know what exactly you are getting into and will ensure you get a fair bargain.
Make sure you negotiate on the terms of the contract before signing on the dotted line. Look out for the warrants and representations, make sure all transactional costs like transfer stamps, title insurance, and attorney fees have been paid and the price that you are paying is reflective of prices of comparable properties.
Make sure you also get title insurance so that you are insured against risks that were earlier forgotten. Make sure that you take a look at the exceptions clause of the title insurance before closing, so that you know what exigencies are not covered. At the same time, during the negotiation process, be ready to furnish a few details about yourself. Some sellers might need a letter from a financial accountant or a bank statement to show that you are financially capable of buying the property. Thus, if you are ready to make these disclosures the process becomes easier.