Whether you are looking for a penthouse in the downtown core with a perfect view of Lake Ontario, or a private stately home on several acres, Toronto luxury home seekers have many great options. Several neighbourhoods in Toronto cater directly to the luxury real estate buyer including the Bridle Path, also called Millionaires Row. Luxury homes in the area start at around one million dollars and can often be as high as hundreds of millions of dollars. Being in the market for a luxury homes requires some consideration to ensure you acquire the best home. Here are five steps to prepare for purchasing a luxurious home in Toronto.
Step 1: The Search
The first step is initiating the search for the luxury property to meet your needs and demands. Deciding what is important to you and your family is key. Deciding if you want the best skyline view, water access, seclusion, privacy, size, house style, parking space and other options should be considered. While some properties may be listed on line, many will not to secure the privacy of the owners. In these instances, connecting with an experienced real estate agent who can leverage his or her network to get information about unlisted residents is important.
Step 2: The Evaluation
Evaluating the homes you have seen that meet your needs and demands is an important step. For luxury real estate, it is often more complicated as elements such as unique features, remodels and other details need to be carefully examined. Set several meetings to visit the same home you are interested in to ensure you do not miss anything. Have your real estate agent or perhaps even an inspector join you to review all details of the property. Additionally, when possible examine comparable properties to get a general idea of how they measure up.
Step 3: The Financing
The upscale luxury market is unique in contrast to the standard real estate market because of financing alone. Typically, buyers are willing to put in deposits between 35-50% of the mortgage value when securing financing. Large banks continue to provide fantastic rates for luxury buyers. With this in mind though, preparing for the approval process can be stretched. More often than not, the financial approval process can take between 45 and 60 days.
Step 4: The Offer
Making the correct offer is not an easy task. Often sellers are not nearly as motivated to sell as a buyer may be to buy. This time delay can make negotiations on a home difficult. Ultimately, having a real estate agent research comparable homes is an important step to making the right offer. Other factors such as time on the market, perceived value, believed value growth and other factors will contribute to the decision on how much to offer.
Step 5: The Details
Because luxury houses are in a much higher price bracket, the complexity of these sales can make them more difficult to close. Tax consultants, financial planners, bankers and attorneys should all be involved in the process to ensure that the purchase is flawless and uncomplicated. A home inspection should never be ignored and should be performed immediately. You should also be prepared for closing costs and subsequent legal work at the time of closing.
Purchasing luxury real estate in Toronto is an ideal investment for a buyer. Ensuring all the steps have been carefully considered and planned for can make the process much easier and more enjoyable for the buyer as well. It is important that you consider these five steps.