Buying a house is an important life event, no matter what market you’re stepping into or how large your property portfolio could be. But it’s important to note that various sections of the market have their quirks and process. In luxury real estate, the process can look a little different compared to a standard home purchase. Of course there’s a higher price point and unique features to think about, but also the exclusivity of the market itself. That means there are some important things to know if you’re shopping at the premium end.

It also means that given the amount of money at play and the number of individuals you may need to contact to ensure a seamless experience (which can sound paradoxical), having a simple primer on how this approach differs can be helpful. So, let’s help you:

The Search Takes a Little More Effort

When you’re looking at luxury properties, you won’t always find them advertised in the usual places. Sellers of high-end homes and luxury real estate tend to keep things more private to protect their privacy and maintain exclusivity. You might not see these listings on your typical real estate website or with a “For Sale” sign in the front yard, as the owner may have managed this entire sale through agents and appropriate websites.

This is where working with a good agent/broker who specializes in luxury real estate makes a huge difference. They’ll have access to real benefits such as private networks, off-market listings, and a deeper understanding of what makes a premium property worth its price tag. They may even specialize in a category, like waterfront properties.

Financing Can Be A Touch Different

If you’re buying in the luxury market, the financing process isn’t quite the same as grabbing a traditional mortgage with a usual rate. Jumbo loans, which cover amounts beyond the limits of conventional loans, are common here. But qualifying for one can be more involved since lenders want to make sure you can handle the higher payments and the wider investment is worth it to them.

If you’re paying in cash, as many luxury buyers do, the process moves faster, but it still comes with its own considerations. Cash offers often make negotiations simpler, but you’ll still want to do all the proper due diligence to make sure the property is worth the investment. You may invest in the long term, perhaps even with partners or through a commercial entity or trust, to protect the asset.

Inspections & Appraisals Get More Specific

Luxury homes come with unbelievable features, such as great acreage, custom architecture, or one-of-a-kind designs. Each one can be bespoke, in other words. Because of this, inspections and appraisals need to go deeper and could even take a month or longer.

For example, an inspector might need to evaluate a guesthouse, a high-end security system, or even private docks if the property includes water access, as well as reconfirmed all property borders, development rights, and more. It’s a huge undertaking. Appraisers will also need to find comparable properties to accurately gauge the home’s value, which isn’t always easy in the luxury market.

With this advice, we hope you can potentially find your way through this process if you’re ever in the fortunate position of considering it a possibility.