Tips For Purchasing A Luxury Home In Arizona

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Tips For Purchasing A Luxury Home In Arizona

Homeownership is a dream for many Americans. Being able to own a residential property is often considered the climax of a person’s life goals, or at least one of the most significant milestones. A home is a place where you and your family can retreat from the rest of society, connect, and grow closer together. It is also a location where you can invite other friends and family to be a part of your life.

Maybe you have owned a home for several years or even decades and you want to take the next step. Perhaps the years have been good to you and it is time for an upgrade in terms of the type of home you own.

Purchasing a luxury home in Arizona could be the final stage of your homeownership journey. When you have the resources needed to include more amenities with your purchase, your entire lifestyle can shift with a luxury home. To ensure you find the right property and have a smooth buying experience, here are some tips to keep in mind.

Secure Sufficient Financing

Financing your purchase is going to be the most important part of the process. Even if you have a lot of money saved up, paying the total amount for a luxury home upfront is probably not realistic. However, the price of the home far exceeds the loan limits set by Fannie Mae and Freddie Mac, (around $726,200 in 2023 for Arizona). 

If that is the case then your best shot at financing a luxury home is with an Arizona jumbo loan. Jumbo loans are riskier for lenders because they are not insured by any entities. For this reason, the requirements are more strict for approval, such as higher down payments, higher credit scores, and lower debt-to-income ratios. However, if you can meet those standards, then a jumbo loan gives you high borrowing capacity to purchase your luxury home. 

Research Comparable Properties

You can get into some really big numbers when you are in the market for a luxury home. While you may be looking for specific features for your dream home and be willing to pay top dollar to obtain them, that doesn’t mean you should do some comparison shopping to help with negotiation. 

There are plenty of real estate websites where you can shop around for nearby homes that have similar amenities to the property you desire. and Zillow are two of the most common options. Browse through other luxury homes in similar Arizona markets and compare the features of each property to determine what a fair price would be, then bring that number to the negotiating table. 

Be Patient

The luxury home market does not work the same as other markets. Homes do not pop up as often, so you could end up waiting for a long time if you are looking for a luxury home. Additionally, patience can be a huge virtue during the negotiation process. Just because you have a lot of money to spend on this home does not mean that you should accept a price that is greater than the actual value.

Be patient as you shop for luxury homes in Arizona and don’t hesitate to hire an experienced realtor who can aid in your search. 

Focus On Strong Resale Value

Even though your plans may be to live in this luxury home for a long time, you should still focus on finding a property with great resale value. You never know what may come down the pipeline that will force you to sell the property and move on in the future.

Additionally, homes with great resale value tend to have timeless features. These elements will not require upgrades before selling in the future, so they will reduce the total amount of money that will be put into the property. A few key factors to look for that have great resale value are energy-efficient appliances, alternative energy sources, recently renovated kitchens, room for additional square footage, and sizeable plots of land to work with. 

Follow These Tips For A Great Luxury Homebuying Experience

The fact that you have the opportunity to buy a luxury home in Arizona is a strong indicator that you have been successful up to this point with your finances. However, just because you have plenty of resources to spend does not mean that you should overspend because you can afford it. 

Having the right financing plan, researching comparable properties, being patient, and concentrating on resale value can all lead to a better price for your luxury home. Prioritize saving where you can so that you are not buying a property for more than it is worth. This will allow you to spend your hard-earned money on home improvement to customize the property or in other areas of life.

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