More people than ever have become interested in buying luxury houses, either as additional properties to travel to for holiday, as potential income properties to sublease or rent out to other individuals, or as luxury homes to live in for themselves. While buying a luxury house can seem like an enticing proposition, it is still important to ask a set of important questions before buying such a property, if only to increase your chances of buying the home you think you are buying.
How Much Did the House Sell For Previously?
While the profit the seller made or did not make on the house does not explicitly dictate what you should be willing to pay for the property, it is still an important question to ask, as it will inform you if the value of the property has increased or decreased since the seller purchased it. For example, if you are interested in a luxury house that was purchased for far more than the seller is now offering it, this suggests something may have occurred between when the house was purchased and when it was put up for sale that significantly lowered its value in the eyes of the seller.
How Long Has the House Been on the Market?
This is an important question to ask because the amount of time a home spends on the market will typically influence the price range at which the house is offered. Generally, you can expect that the longer a luxury house has been on the market without a completed sale, the lower its price will have sunk from the initial price listed by the seller. Keeping track of time on the market can be a great way to score a luxury house in a poor economy.
Who Are Your Neighbors? and What Are the Zoning Laws?
It’s very important to understand the surrounding environment of your potential home. Commercial buildings, industrial facilities, and apartment complexes tend to lower the values of residences located around them. While none of these may be deal breakers when it comes to the luxury home you are interested in, you should keep the presence or absence of these structures in mind when deciding on a property. In addition, knowing the zoning laws helps you to make an educated guess about what the future holds for the neighborhood.
What Are The Downsides to This Luxury Property?
No matter how pristine the location, there is almost always something that could be a bit different. For example, if freeways are located in the distance, you might not notice the noise from them during the day, but the din and clamor might become unbearable as the day edges into night and the clatter keeps you awake.