Aspen is a breathtaking mountain town renowned for its world-class ski resorts, scenic beauty, and outdoor recreation. As a result, many individuals fall in love with this charming small town. However, for anyone who has not purchased luxury property before, it is essential to understand some of the key differences between luxury and non-luxury real estate. The following are nine points to remember when beginning your luxury home search.
Understanding luxury property
Luxury property refers to high-end, premium real estate designed to cater to the most affluent and discerning buyers. Luxury properties range from sprawling estates to waterfront homes, lavish penthouse apartments, and opulent villas featuring unique architectural designs. These properties offer prime locations in desirable neighborhoods, often with views of natural wonders such as oceans, lakes, or mountains, and easy access to the best shopping, dining, and entertainment destinations.
Regarding luxury property, a few factors contribute to this specific title, the most obvious being the higher price. However, other features to consider are the quality of the architecture and design, the location of the property, the property size, and the history of the place.
Work with local agents specializing in luxury properties
When searching for a luxury property, it is crucial to connect with a local agent, such as an Aspen realtor who knows the community and who specifically understands the luxury real estate market. Not only are the market trends different from the local real estate market, but sellers also tend to work in discretion to avoid having too many people coming to the house. Sellers wanting this discretion during these transactions means many luxury properties are usually unlisted and can only be heard about through luxury agent networks to schedule private house tours.
Using the internet for your luxury home search
After the past few years, online tools for finding homes in any real estate market have increased exponentially, with agent websites, social media platforms, and online listing services. These tools are especially useful in the luxury real estate market, despite many listings not being included on these websites. The significant benefit is finding and connecting with local real estate agents is easier, even if you live out of state. The internet provides a wealth of resources making the search process faster, easier, and more convenient. Although agents can help with finding listings, the internet can also help with getting an idea of what the home is like before even setting foot on the property.
The importance of seeing the house in-person
Even though online tools are useful for your luxury home search, it is still beneficial to tour the home in-person before making the purchase. Homes are staged to make them more appealing to buyers. Professional photographers taking the staging photographs also understand how to create the most photogenic scene. It also can help you experience the actual size of the house and what the neighborhood is like, along with getting a better idea of the yard and other land surrounding the house.
Finance with a lender who understands luxury property transactions
Due to the high price tag, luxury property is a worthwhile and substantial investment. When financing the house, it is wise to work with professionals who understand jumbo financing — or what is known as a jumbo loan. Jumbo loans exceed the Federal Housing Finance Agency's (FHFA) set limits for loans, which varies depending on the state. As a result, the loan terms are determined by the lender, and the borrower needs to demonstrate their ability to pay off the loan and contribute a larger down payment.
The importance of negotiations
As you go into a luxury real estate transaction, you should expect to spend large amounts of money to purchase the property. However, you can still negotiate, especially if any upgrades or repairs are necessary. Your mortgage lender will also typically require a home appraisal to ensure you are not overborrowing on the loan, especially if the home's value is lower than the seller's asking price. Since the home appraisal occurs before closing on the house, the results can also impact your negotiating power.
Title insurance
Before closing on the house, mortgage lenders typically order a title search. The title search consists of going through public records to ensure no discrepancies or claim issues ultimately affect your claim of home ownership. Mortgage lenders will require title insurance as protection, but you can also purchase an owner's policy for yourself.
Save all the paperwork involved in the transaction
As you prepare for the transaction, it is crucial to maintain all financial records as documentation for lenders, especially when getting approval for a mortgage and during the closing stage of the transaction. The documentation demonstrates your capability to purchase this property, which means keeping records of any income and other investments.
Not only is it essential to save all financial documentation, but it is equally important to organize other paperwork involved in the transaction, such as the title search and home inspection results. Working with a real estate agent can help you take care of these files and ensure you have everything ready for a smooth transaction.
Finding luxury property in Aspen
Although there are similarities between the luxury and non-luxury real estate markets, luxury property transactions tend to be more complex due to the amount of money involved. The investment in purchasing luxury property is one of the main reasons why it is vital to work with a luxury real estate agent who knows how to handle these complex purchases and is also aware of the local luxury real estate market in Aspen.
If you are beginning your search in the Aspen luxury real estate market, contact Saslove & Warwick today. Saslove & Warwick is ranked as the number one team in Aspen, with a combined 40 years of experience in real estate. Their blend of experience, community ties, and forward-thinking is utilized for finding your dream Aspen property.
