Luxury home shopping is very different from shopping for a regular home. if you are flexible enough about the location of your future home, it is well worth it to look at homes in multiple cities and states. Here is a look at why that is the case.
Luxury home designations can vary from place to place.
In real estate, there is always an ongoing question from prospective luxury home buyers: what actually constitutes a luxury home? In truth, the answer can vary drastically depending on what part of the country you are shopping in. When you have a broader scope of geographic locations as your shopping area, you will grow to learn the differences between different places. Some things that can make a home luxury in some states and not others would include things like:
- The size of the land the house is placed upon is larger than most (e.g., a lot of acres or a large lot can be especially valuable in densely populated areas)
- The outlying amenities the home offers are unique for the area (e.g., a pool may be luxury in some places but not so much in places where most homes have a pool)
- The home has a significant local value compared to others (e.g., the home was designed by a historical person of interest)
Price points associated with luxury homes can vary drastically from one city to another.
Shopping for a luxury home should involve a bit of a wider geographical perspective if you want to get the most for your investment. Just as different places can designate homes as luxury in a different way, different states and cities can also have completely different price points on luxury homes. For example, a million-dollar home in the state of Texas may be a sprawling ranch estate with a 5-bedroom home, but a million-dollar home in New York could be a 1,000 square-foot condo in the city.
Property taxes can be variable depending on where you buy.
One of the major expenses that can come along with owning a piece of high-end real estate is the property taxes you will pay to the local government annually. Even these rates can vary pretty dramatically depending on where the luxury home is situated. For example, Hawaii has a real estate property tax rate of just 0.27 percent, which means annual property taxes could be more affordable. However, New Jersey's rate is 2.47 percent, which would mean your annual property taxes would be drastically different depending on where you bought your luxury home.
Contact a real estate agent for help with finding luxury homes in your area.