Tips To Afford A Luxury Home On A Non-Luxury Budget

Posted on: 23 July 2018

Want to buy a luxury home but afraid that dream is out of your budget range? While it is true that luxury homes tend to cost more per square foot, a fact that makes sense when you see the gorgeous architecture, high-end materials, and useful additions, there are ways to lower that cost. The following tips can help you afford a luxury home on a regular home budget.

Tip #1: Follow the market weekly

To find the best deal, you need to find a motivated seller. This is a seller that has likely had the house on the market for a while and they simply can't afford to keep it anymore. What you will begin to notice is a pattern of delisting and relisting over several months, or multiple price drops spanning weeks or months. Since these indicate a seller that needs to unload a house quickly, you may have a chance to lowball an offer and bargain for an even better price on the home, thus bringing it into your budget.

Tip #2: Wait  until winter

The worse the weather, the better the chance of getting a great deal on any home -- luxury homes included. This is because most homebuyers are looking at real estate in the spring and summer. There are two reasons for this -- most people prefer to tour homes when the weather is nice, and most people move in summer for similar reasons. Once winter arrives with its ice and snow, many home shoppers retreat from the market and homes are left to stagnate in the listing for months. A seller not wanting to hold onto a house until the next real estate cycle is more likely to drop the price simply to offload it.

Tip #3: Save up plenty of cash

One almost surefire way to get a deal on a luxury home is to make a cash offer. This is because cash offers require less red tape, closing is typically quicker, and the seller walks away with cash in hand with few hassles. This is also gives you more room to bargain, since you can overlook small issues with the home that a lending bank may have required to be repaired before providing a home loan. If a seller doesn't need to do some small bits of work, they can be more willing to lower the price to meet your cash offer. One option for getting the cash is either through a personal loan, if you qualify, or from a retirement account. Some retirements accounts allow you to pull the money early without penalty for certain purchases, like a home or education costs.

For more help, talk to a real estate agent that deals in luxury homes.