The more high-end the piece of real estate is, the more likely it is to have a complicated backstory that can make it difficult to determine its true worth. When relatively new home buyers enter the world of luxury real estate, they can sometimes feel overwhelmed by all the upscale equipment, extra amenities, and beautiful views that often come hand in hand with these kinds of homes. That’s a natural response.
But it’s important to keep a clear mind when dealing with luxury real estate and have as much information as possible at your side when evaluating its value. It’s part of the job of a quality real estate agent to provide you with that research. Below, we’ll cover some of the most effective ways to figure out the worth of a luxury home with the help of your realtor.
Location comes first
As the age-old saying goes, location is what makes a property value what it is, more than any other factor. In most cases, that is true. An exceptional home or condo with an outstanding assortment of amenities and breathtaking views may fetch higher sale prices than homes in high-value locations. But that’s the exception.
What sets luxury homes apart in the majority of cases is their superior location in some of the world’s most coveted addresses. When determining the true worth of a luxury home in question, keep in mind the long-term popularity of the place it’s situated in. If the location has a long history of being home to outstanding properties, there’s a good chance that the value will be high and continue to rise with time.
Look over the extra amenities
Besides location, the next part of a high-end home that potential buyers are going to want to investigate are the amenities included with the house
. That’s part of what makes investing in luxury homes so much fun: rare and extraordinary equipment, furniture, and architectural features are something you encounter all the time.
Take your time to view the special features of the house in question carefully. Learn as much as you can about the name brands of kitchen appliances, flooring materials, countertops, and display furniture like large sectionals, bedsteads, sofas, and artworks. Check out the kinds of entertainment features available. Is there space to expand or replace the existing amenities with ones that you prefer? How outdated are the parts of the house that are harder to replace, like wine cellars, marble baths, or antique tubs?
Putting all of those considerations together, you’ll have a better understanding of the value of the home at present. What’s more, you’ll have a clear idea of whether or not you’ll have to put a lot of time and money into upgrading the amenities that don’t fit your liking. That’s also a calculation to remember to factor in before you put up an offer.
Research the home’s age and past
The more time you spend comparing luxury homes to buy, the more likely you’ll find a few properties with a long, distinguished history
. In a lot of cases, age will do a lot of heavy lifting when it comes to evaluating the worth of a home. Perhaps a local celebrity once lived in the home in question. Maybe a special historical moment took place on the premises.
These are all important facts to nail down before you think of making an offer. Ensure that the history is accurate. If the home’s age is extensive (or over a hundred years in length), be sure to do your due diligence and clear that all repairs and renovations are properly noted.
Know about all past repairs and upgrades
Speaking of repairs and renovations, luxury real estate is more likely to have a longer backlog of them than conventional properties. Meet with the sellers and their agents to have a detailed list drawn up that includes every individual upgrade or repair made to the residence. In some cases, these details may not factor into the overall value.
But if past homeowners went through the trouble to install upgrades like smart networks, green appliances, solar panels, or other high ROI investments
, you could be looking at a healthy boost to the sale price.
Weigh the pros and cons of purchasing a house with state-of-the-art technology already present. The initial asking price may be higher than the average for the size or location, but you could improve your quality of life quite a lot by living in these kinds of arrangements. You could save a considerable sum on utility charges. Plus, if you later decide to sell, those high-tech upgrades will give your listing a heads-up on other luxury homes that haven’t fully moved into the 21st century.
Consider the size of the home
Behind location, square footage is probably the second-most important spec to highlight when gauging the value of a Hoboken luxury home
. Check out the total number of bedrooms and baths first. That will be the most important metric to know in the price evaluation process.
Next, learn more about the total square footage and the details of the floor plan. Of course, you’ll want to ensure that the floor plan meets your needs. But you can also get an idea of the home’s potential to expand its footprint. A mountainside chalet can only grow to be so big, whereas a sprawling New Jersey luxury home generally has more space around it to expand and increase its size.
Reach out to a local real estate agent today
With that, we’ve come to the end of our article on evaluating the real worth of a luxury home. Above all, location, size, and the potential to upgrade the house in question are some of the most important factors to keep in mind. If you have any questions or comments to share about the topic, or if you’d like to learn more about Hoboken luxury homes or those in New Jersey, get in touch today! Contact The Andrew Botticelli Team
for more information.*Header photo courtesy of The Andrew Botticelli Team