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Avoid These 4 Mistakes in Buying a Luxury Home

Telluride homes often equate with luxury. In buying one, not only do you get a beautiful property in one of the best skiing destinations in North America, you also get a host of lifestyle perks.

When looking at a luxury property for sale, however, it’s easy to make mistakes that can take the shine off your home a few years down the road. Learn to identify and avoid these mistakes. We’ve listed the most common ones below.

  1. Not knowing your purpose for the home
  2. Always have a clear-cut goal in buying a home. Your long term and short term plans should guide your property search and eventual home improvement projects. Are you thinking of reselling the home in a few years? Do you plan to rent it out when you’re not using it? Is it a legacy home to be passed on to your children?

    Choose a property and plan your improvements to match your goals. If you’re thinking of selling it in the future, don’t over-personalize the aesthetics so you can attract a wider range of homebuyers. If you plan to rent it out, pay closer attention to the location and the conveniences that a renter will look for.

    If you’re interested in a retirement or legacy home, looking for the right property is a simpler process. You only need to find one that suits your or your family’s needs and preferences, and you can customize it as much as you want. A word of caution though – many have bought a home thinking it will stay with the family forever, but have a change of heart later on for various reasons. With this in mind, it’s always wise to think about resale value regardless of your present reason for buying.

  3. Making a decision based on first impressions
  4. It’s easy to get carried away by a beautiful home with top-of-the-line finishes and architecture, especially when it has been professionally staged. In many cases, a homebuyer decides to buy a home within the first few minutes of seeing it. This is a common mistake that should be avoided at all costs.

    With a sizeable amount at stake, a luxury home should, first and foremost, be treated as an investment. No matter how impressive a property is, you should always consider its resale potential, and that means taking other factors into consideration, like the location, zoning, the neighborhood, and extent of customization.

    Additionally, do not close a sale without doing a home inspection first. Good staging may be hiding flaws in the property that can prove serious in the future.

  5. Rushing to buy
  6. It’s understandable to have a timeline for a home purchase, but don’t make the mistake of buying a property simply to meet time constraints.

    Do thorough research on the home and the neighborhood before making an offer. Look into market trends in the area. Perhaps it’s not a good season to buy, with many competitors vying for a home and pushing property prices up. It could be that the neighborhood has security issues. Or perhaps, a future development could block the views that made you fall in love with the house in the first place.

    Additionally, don’t make your decision to buy based on photos and videos alone. It could be that the home is not as impressive in person as it is on photos and videos, or the other way around. As much as possible, take the time to personally view potential homes.

    In addition to inspecting the home’s condition, check if it’s a good match to your lifestyle and your intended use. For example, if you have young children, are there structures that could be a safety hazard? Does the home need extensive maintenance? If you want to rent it out, is there something about the house that can turn potential renters off?

  7. Making an offer based on the selling price
  8. One of the consequences of rushing into buying is to simply match the listing price in making an offer. You risk overpaying when you do this. Always take the time to determine if the asking price is fair.

    Ask your Realtor to do a Comparative Market Analysis that will consider recent sale prices in the area, the property’s distinct features, and market conditions. The analysis should help you come up with a competitive offer price, while avoiding low-balling.

    Additionally, your Realtor can look into other data that may hint the seller is highly motivated to sell and is open to negotiations. This could present opportunities for a great sale.

Work with a local expert in buying a luxury home in Telluride

With over 60 years of collective experience, we at Team TD Smith will protect your interest at all times and help you avoid costly home buying mistakes. Call us today at 970.729.1577 or email us at TD(at)TDSmith(dotted)com.