Selling a Luxury Home

Real Estate Tips: Selling a Luxury Home

Any real estate agent that has experience in the luxury side of real estate knows that the value of these properties has an effect on how any transaction involving them is conducted. Considering the fact that these homes are often worth the cost of millions of dollars, sellers, therefore, have to get the sale right. The number of luxury homes out there are steadily decreasing as more lots are giving way to buildings that can host more than family, it, therefore, becomes essential that the seller put his or her best foot forward through the sale process.

When selling a luxury home, it is important to attract the attention of the right buyer, create an understanding in the buyer of the worth of the home and effectively negotiate the best price for the property that works for the parties involved. There are two other things that contribute to the success of the sale of a luxury home and that is having the right real estate agent and the right listing price. The following are real estate tips on selling a luxury home:

Have a picture of the buyer you hope to attract

A picture means trying to have a mental image or psychological profile of the buyer you wish to attract as this makes it easier to model marketing techniques to lure them. To some individuals, employing this technique might be strange as to them; the sale should attract every possible individual.

The truth is that you cannot satisfy everyone so why not try to attract a specific crowd to make things easier. Knowing who you are marketing to help to draw your high-end clientele. While trying to attract a buyer, the seller and the realtor should make an effort into understanding what separates their luxury home from the others out there.

Is your luxury home more modern, or is it the more old-school classic? Go through the entire house and assess what could be pros and cons for potential buyers so you can be ahead of the game. Ft. Lauderdale real estate, an incredible market for luxury homes, has the versatility of offering waterfront homes to both yacht enthusiasts and fishing devotees. So looking at a house’s water frontage would allow a real estate agent to assess if the house would be better fitted for a yacht or a finish aficionado.

Have the right price

Yes, your home is a luxury home but that does not mean, putting just any price would do. Having the right price from day one makes a difference in whether your home sells within the first few months or remains on the market for the most part of the year.

It is actually not easy to set a price on a home but there are methods which real estate agents make use of that take note of the look of the home, its weaknesses and strengths, the neighborhood, state of the market as well as the method of comparables where similar transactions are used as a reference point.

Have the right timing

Different seasons bring about a need for different things and the same goes for luxury real estate. If your property happens to be located on the waterfront, then the best time to attract buyers would be the summer period while for a location close to the beach, individuals would also be attracted to it during the winter. The good thing about luxury homes is the fact that they take advantage of strategic locations with good attractions thereby making it easy for them to be marketed in relation to the seasons and need of buyers at that moment.


Benefits of Owning a Vacation Home

The dream to own a vacation home in a luxury location is one that is held by a lot of individuals. It, therefore, comes as no surprise that most of the rich individuals have more than one home in different locations around the world. Apart from the rich, the average individuals also tend to seek out a location that is different from the pace of the location of the current home so as to be able to unwind at least a few weeks in a year.

Having a vacation home certainly has its pros but this also has its cons. That is, most times having a vacation home is not all beds and roses there can also be drawbacks to it. The decision for most people on whether or not to make the plunge to get a vacation home is all reliant on the intent for it.

The following are the pros and cons of owning a vacation home from different perspectives:

Tax Benefits of a Vacation Home

When looking at a vacation pros, one thing that comes to mind are the tax benefits of being able to deduct the mortgage interest that comes with it which is similar to that done for the first home. Another added benefit is the fact that the home can be rented tax-free for a period of 14 days.

A con to this is that if the home is rented for a period of more than 14 days throughout the year, then the home is now considered to be a rental property with you as the landlord. As a result, any rental income or expense from it has to be reported on Schedule E as part of your tax return.

Although you still have the option of deducting property taxes, living in the property for a period more than the stipulated 14 days means that a loss cannot be gotten from the rental.

Additional Costs of Vacation Home Ownership

A pro to owning a vacation home is that the mortgage paid on such homes is liable to better terms than that of properties gotten for the primary purpose of investment.

The con to this is that any activity associated with rental has to be monitored and in line with the agreement of the terms. Also, owning a vacation home means that there are other things like maintenance and repairs that have to be monitored which are more than that for the regular home.

The cost of this maintenance can also be high depending on the location of the vacation home. If you are not one to like constant maintenance, repairs, and checks on the property, then you have to hire a property management company which is another expense as they collect a fee of as much as 30 percent of the rental fee. Another thing that has to be considered is the fact that the property insurance for the vacation home tends to be higher than when they are used for the purpose of rental.



Looking for a Mortgage in Miami – You Could Be Out of Luck

Where you live in the United States could affect your ability to get a mortgage for that dream home, more than you might think.

The Case-Shiller housing index has put it top of the list for American cities that were the hardest to secure a mortgage for a property.

Sitting second on that list is Miami’s Florida neighbor, Tampa. There is a 12.6% fail rate on mortgage applications from people looking to gain finance to move there.

Next hardest on the list was the metropolitan area of New York, with a rejection rate of 12.3%. Following down the scale of fail, there is Las Vegas on 11.6% and Los Angeles on 10.2%

Close to twenty percent of mortgage applications in Miami were rejected in 2015 and then another nineteen percent were subsequently withdrawn or somehow discontinued, which meant from the beginning, a little over 60% of the original applications made it through to fruition.

So what is it about Miami that makes it such a difficult place to obtain a mortgage successfully?

It is most likely the influx of wealthy seniors looking to retire in the Magic City, as well a sizeable foreign population, which may be pricing out locals from buying their first home.

When the housing crisis came knocking in 2009, Miami was one of the cities hardest hit, affecting minority communities the worst.

This was because they were generally the ones on the bottom rung of the property ladder and already struggling to stay afloat.

Then there is the issue that loans are more likely to be denied for certain types of properties. For example, condominiums.

Frank Nothaft Chief Economist with CoreLogic thinks this may be the case in Tampa. There are several condominiums in the city by the waterfront, which could be the reason for the rate of mortgage declines.

He explains that when there are a large number of condos in an area it is more likely to cause a mortgage application to fail.

Coupled with a fast rise in prices in the Florida market and this is a double whammy for prospective buyers in Miami and Tampa.

So where is the best place in the States to apply for a mortgage, without being rejected?

Head to Minneapolis, as this comes out as the easiest place in America to get a mortgage, with only 5% of applicants being denied.