- When we talk about preventing a financial blow while proceeding with the purchase of a luxury home, we definitely don’t talk about the rich people because they usually find it convenient to get the wads of cash. However, it doesn’t really mean that an average buyer shouldn’t purchase a luxury home. It surely is very much possible but there is a need for the smart choices to be made.
You need to keep in mind that any home, no matter how luxurious, is a dream home if you are going to pay more mortgage than what you can easily pay. Furthermore, it’s quite difficult to resell a luxury home because very less number of buyers can afford to buy a luxury home.
Nevertheless, if you have all things sorted out after running through the number and making necessary research, there are some additional ways you can consider in order to further smoothen the process of buying a luxury home.
The timing of purchase
- Remember the rule ‘demand and supply’ while buying a luxury home. When there is less demand about anything, it gets sold in a price that is less than the market value. So, the off season in which you can consider buying a luxury home is winter. People rarely want to go on the home visit during this season. You can even pick winter holidays when everyone is busy spending time with friends and family. A purchase deal at that time would help the seller to get the tax reduced while you will be able to cut the cost of home.
Finding a motivated seller
- The property listing history can tell you whether or not a seller is motivated to sell their home. If a home stays in the market for a few months and its price is not changed either, the seller may not have judged the price of home correctly.
So, the best way here is to set market alerts. You can contact a good real estate agent to get consistent details about price reductions in the prices of homes in the market.
Make your offer less restrictive
- If you want your bid to go a long way during the negotiation process, include fewer restrictions in your offer. An emphasized restriction that you can add in your offer is the short window in which you would stick with the minimum number of contingencies.
Another way is to offer a larger deposit. It would help you getting a deal by which you may be able to save quite a lot.
The retirement funds
- One great idea to get quick cash for buying home is to borrow from your retirement account. This loan would be tax-free but you will need to pay it back within five years according to the rule. However, you will need to be careful while using this option because any mishandling will leave you deprived of major amount of cash that you are supposed to get in your golden years.