As the capital of Colorado, Denver is a stunning city nestled at the base of the Rocky Mountains. In this charming city, you will find the perfect balance of urban living and outdoor adventure. Denver is surrounded by mountains and beautiful nature, alongside its world-class dining and shopping scenes. Denver also offers luxurious living options unmatched by any other city. From high-end condominiums and penthouses with panoramic views of the mountains to sprawling estates, Denver has a home suitable for any taste.
With everything Denver has to offer residents, it is no wonder so many want to move here. Before investing in a Denver luxury home, though, here are at least eight things you need to know to make an informed decision.
1. What is considered luxury real estate?
A luxury property is a high-end, premium home designed to cater to affluent and discerning buyers. Luxury properties range from large country estates to waterfront homes, lavish penthouse apartments, and even opulent villas full of unique architectural designs. These properties offer prime locations in desirable neighborhoods, often with scenic nature or city views, along with access to the best shopping, dining, and entertainment.
For Denver luxury homes, a few factors contribute to this specific title, the most obvious being the higher price tag. However, other features to consider are the quality of the architecture and design, the location of the property, the property size, and the history of the place. Many Denver luxury properties are in sought-after neighborhoods like Cherry Creek, Highlands Ranch, and Washington Park.
2. The importance of working with local agents
When searching for a luxury property, you should first connect with a local agent, such as a Denver Realtor who knows the community and understands the luxury real estate market explicitly. Not only are the luxury market trends different from the local real estate market, but sellers also tend to work in discretion to avoid having too many people coming to the house. This level of discretion means that many luxury properties are usually unlisted and can only be discovered through luxury agent networks to schedule private house tours.
3. How the Internet is beneficial to your home search
In recent years, online tools for finding homes in any real estate market have played a more significant role in home-buying, including agent websites and social media platforms. These tools are especially useful in the luxury real estate market, making finding and connecting with local agents easier, even if you live out of state.
The Internet provides abundant resources to make the search process faster and more convenient. Agents are helpful with finding listings, but the internet provides a reasonable frame of reference about what the home is like before you even set foot on the property.
4. Why you should visit the property in person
Even though online tools are useful when searching for a new home, you should still tour the home in person before committing. Sellers purposefully will set up their homes to make them more appealing to buyers, and professional photographers staging the photographs understand how to create the most photogenic scene. Touring the house in person also helps with understanding the actual size of the property, along with the yard's appearance and other surrounding land. Visiting the property in person also gives insight into the neighborhood, such as what amenities are nearby and the local schools in the area.
5. Financing luxury property transactions
Due to the high price tag, luxury property is a worthwhile but substantial investment. When financing the house, work with financial professionals who understand specialized financing, specifically jumbo loans. Jumbo loans exceed the Federal Housing Finance Agency’s (FHFA) set limits for loans, which vary depending on the state. Due to the nature of jumbo financing, the loan terms are determined by the lender, and the borrower must demonstrate their ability to pay and contribute a larger down payment on the loan.
6. Handling negotiations
As you enter a luxury real estate transaction, you will expect to spend large amounts of money on the property. However, you can still negotiate on the price and terms of the contract, especially if there are any necessary upgrades or repairs. Your mortgage lender will also require a home appraisal to ensure you are not overborrowing on a loan, as there are times when the home's value might be lower than the seller's asking price. The home appraisal results also impact your negotiating power.
7. Investing in title insurance
Before closing on the house, mortgage lenders typically order a title search, where a search is conducted by reviewing public records to ensure no discrepancies or claim issues affect your home ownership. Mortgage lenders will require title insurance as protection. However, you can purchase an owner's policy if the lender does not require it.
8. Keep your paperwork organized
While preparing for the transaction, organize all financial records needed as documentation for lenders. This task is especially crucial when getting approved for a mortgage and during the closing stage of the transaction. The documentation demonstrates your capability of purchasing the property, so keeping records of all income and investments is hugely beneficial.
Not only should you save all financial documentation, but you also need to keep track of other paperwork involved in the transaction. To alleviate some of the stress of this task, work with a real estate agent to ensure you have all the paperwork you need for a smooth transaction.
Finding luxury property in Denver
Luxury property transactions tend to be more complex due to the amount of money involved, and working with a luxury real estate agent is vital. Luxury agents know how to handle these complex purchases and stay current on any changes in the Denver real estate market.