Luxury Homes

How do you go about purchasing a beach condo?

Vacation property purchases are complex investments. The typical purchaser is challenged by the prospect of purchasing real estate in markets where they are not familiar. Historical value patterns and current trends are often derived from emotional meters rather than from solid investment principles. Purchasers frequently select a condo in the area where they have traveled or vacationed and evaluate the purchase by their limited exposure to the area.

The first step to purchasing a beach condo is to determine how it will be used. Do you plan to vacation in the unit for a week or two each year, or will you migrate for most of the winter? If it will be a frequently-used second home you should make more than one visit to the area to be certain that it will suit your long-term goal. If the unit is primarily intended to be a rental, you must evaluate the purchase in a less personal fashion.

Investment purchases are best made with the assistance of an investment advisor who specializes in investment real estate. Establish a relationship with a Buyer's Agent who works the vacation market in the areas of interest. Request price patterns for each condo site and compare variations. Pay special attention to any irregular spikes or dips. Lastly, compare vacancy rates and apply those numbers to your debt service.

The beach condo market has surged in popularity as Baby Boomers enter the second home market in record numbers. This buyer group is placing heavy emphasis upon "lifestyle" properties. These are properties that offer beach, golf community or other lifestyle amenities. The Boomer interest helps to support value and demand, making a beach condo purchase a wise investment.

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Should I buy a condo?

Condo living offers an ownership opportunity with the freedom from exterior maintenance and upkeep. Many first-time home buyers, single adults and retiring singles/couples are drawn to the condominium lifestyle for a variety of reasons.

First-time buyers are often fearful of the exterior responsibilities that a single-family dwelling poses. Roofs, garage doors, landscaping and other items that pose unknown cost and time commitment. Singles and retirees are ready for freedom from yard work or want to travel for extended vacations without worrying about home upkeep.

Design and size have changed dramatically since the introduction of the first condominiums years ago. Condominiums are available in all architectural designs, sizes and shapes. Some are high-rise units, while others can be duplex-style ranches. You can purchase condos with basements or slab foundation. Nearly every single-family amenity is available in a condominium.

Condominium exterior maintenance does not come without a cost. Condominium homeowner associations require all owners to become members and the monthly dues are equivalent to the annual maintenance expense plus a reserve. The fees can average from around $100 per month and up depending upon the condo,location and amenities.

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What are condominium or association fees?

Condominium fees are one of the often over-looked overhead items attached with purchasing a condo. While condo fees are generally a swap for ownership expenses related to seasonal exterior maintenance and upkeep, they often exceed the amount a typical homeowner would spend. Of course, the benefit is the homeowner doesn't tend to major or minor home repair.

If you are a first-time condominium purchaser, keep in mind that all association fees are not the same. Each is based upon the specific upkeep required for the condominiums it covers. Many provide basic inclusion of garbage collection, snow plowing, mowing and care of any entrance monuments and landscape. The fees are also designed to care for the exterior of each condo and any community buildings. This includes roofing, window replacement, sidewalks and exterior structure repair.

In condominiums that offer pools, recreation/fitness areas, club house and other amenities, the fees will be substantially higher. In those instances, owners are obligated to fund the care of all of the campus provisions and opting out of the monthly fee is not an option for this common form of joint ownership.

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How Can I Find An Agent Knowledgeable in the Luxury Home Market?

Luxury home purchasers will reduce stress by working with an agent who actively lists, sells and potentially owns a luxury home. Whether you are seeking a luxury condo for sale, a luxury vacation home or your primary dwelling, the luxury market is unique.

Luxury home specialists bring more to the home-finding experience for upscale market shoppers. It is frustrating to have a Realtor who is not in tune with the latest trends and amenities most sought by a luxury market shopper. A true specialist will be adept at understanding how luxury features impact value and will also have a firm grasp for evaluating the cost impact of features that are not present in new luxury homes or resale properties.

Finding a professional with the expertise you seek to sell your home can be daunting in many environments, but the luxury market differs. The first step is to determine who represents most of the luxury listings in the community where you intend to purchase. The second step is to arrange an interview with the two most visible luxury home marketers. Request a list of the homes that the agent has both listed in the past 12 months and all of the homes he or she has sold in that same time period. If the listings out-price the sales by a large margin, it is a red-flag that while the agent lists higher priced properties, their buyer pool might not include candidates for your home.

Luxury homes require an aggressive and frequently higher-priced marketing plan than those of lessor value. Ask those real estate agents you interview for a written marketing plan than takes into account the average days on the market for your targeted price range and volume of currently listed properties within your demographic area. It is important to have a marketing plan that is designed to get your home sold.

Finally, whether purchasing or selling a luxury home, be certain to include a provision that allows you to cancel your listing or buyer broker agreement in the event the agent fails to deliver the service as outlined in their marketing or representation agreement.

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How can I select a luxury home builder in my area?

Selecting a luxury home builder to construct your new luxury home is the most critical decision in the entire process of building a new home. It is important to obtain references from each potential builder. Call their references to determine how well the entire process was handled. Did the builder return calls promptly? Was the builder reasonable about change orders? Did the builder interject creative ideas about materials and finish products and did he complete on time?

After polling references, it is time to take a candid look at the builder's workmanship and finished products. Builders tend to adapt a signature design or personality in their product. Do not expect a builder who favors tile roofs and stucco to build a Georgian mansion. Determine the builder's expertise and stick with his true skill.

Do not be tempted to "save money" with a builder who is eager to enter the luxury home building market. Cutting cost with a new builder is not advisable. The money you think you are saving will cost you more in errors and delays.

Finally, new homes need to have a thorough inspection performed prior to finalizing the documentation. Most people think of inspections for previously built homes, but problems with new homes do arise. Use the services of a competent inspector even when building a new luxury home!

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Should I have an inspection peformed on a new home?

People rarely think of having an inspection performed for new homes and even less often for luxury homes but with the recent boom in construction, it's a good idea to hire an inspector when considering any home purchase. Here are several quick tips that can literally save you thousands of dollars when contemplating your new home purchase:

1. Examine the builder warranty information. Luxury home builders often have greater than average customization and other features including technology or design that may lead to inadvertent issues. Understand what the builder is responsible for and for how long.

2. Review the minimum performance standards of any prospective luxury home builders you are considering. These are minimum expectations that each builder should be willing to provide in writing. Performance standards stipulate what you can expect the builder to fix and in what time frame. These often include cosmetic items outside those of the typical building codes. For example, an irregular tile in the middle of a room; it may easily pass inspection but fail to meet your expectations when having a luxury home built.

3. Find out if your builder is a member of the local Builders Association. If you are not sure, consult with local real estate professionals who can usually suggest a trusted builder in the area.

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What other services does a luxury home agent provide?

When searching the new homes luxury market, you may be pleasantly surprised to find a vast array of services available beyond simply searching or the listings of available homes. Today, luxury home real estate professionals increasingly offers extended services to meet your every need.

Aircraft, RV or Boat Transportation and Storage Services: Many people interested in purchasing a luxury home, vacation condo or other related real estate find it difficult to accommodate the transportation and storage of other modes of transportation. The good news is many full-service brokers now have relationships in place to assure your move is as convenient as possible.

Interior Design: Particularly if you are relocating, the interior design, art and decor can be decided in advance so your new home is prepared to welcome your arrival.

Relocation Services: Everything from advanced copies of the telephone book to installation of phone and utilities are increasingly provided for busy professionals seeking to buy or relocate into new homes or luxury housing.

To locate a full service broker or real estate professional who provides enhanced services related to the luxury home market in your area, order a FREE Homes and Land real estate magazine.

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