What do I look for when choosing the right luxury home?
Choosing your next home isnt as simple as picking out a new shirt. There are many more things to consider. It’s also not as simple as choosing a home based on bedroom count or whether it has a 4 car garage. I always consider the lifestyle of my clientele, and craft a search around that goal. Family, hobbies, and relaxation are top priorities, but there are a few other valuable points that need to be taken into account during the search.
1. Always buy with the end in mind
Plans can change! I’ve seen many “forever homes” go up for sale within 3 years. Sometimes life happens and a sale becomes necessary. In those cases you’ll be glad you purchased a desirable property that has the best chance of selling in any market. Rare and desirable features are the best. Look for locations in a court and near excellent schools. Single story homes have also been very desirable over the last couple days. Buying a home with as many of these features as possible will ensure that you can sell for top value in either a Buyer or Seller market.
2. If the bones are solid, a remodel might make the most sense
Sometimes it’s hard to find a newer build that meets other requirements. In many cases, it might make more sense to purchase an older home and make significant updates. Granite Bay is a great example of an area with many dated homes in ideal neighborhoods. Completing a major renovation can provide the benefits of a desirable neighborhood and the comfort of an updated home.
3. Technology has advanced, so take advantage
I’m not talking about Alexa or gadget-of-the-month stuff, but fully integrated automation. Fully automated remote systems for lighting, security, audio, and to handle the home comfort systems are top of the list. Savant, Crestron, and Control 4 are three of the top system integrations in current luxury homes. A secondary consideration is the WiF and fiber capability of the network.
4. Be clear about the the amenities that match your lifestyle
These are a few of the most common features that high net worth buyers add to their search list
- Indoor/outdoor flow with resort-style pool/spa
- Professional-grade kitchen + separate catering kitchen or butler pantry
- Private gym + spa/sauna/steam
- Climate-controlled wine cellar for 500+ bottles
- Screening room or multi-purpose media/gaming lounge
- Proximity or easy access to nature/hiking trails
- Local equestrian services, riding trails, or boarding centers
- Screening room or multi-purpose media/gaming lounge
- Guest house or casita so visitors never touch the main residence
- Oversized or finished 4+ car garage for toys or classic cars
5. Consider any potential taxable events
Is it worth keeping a current home instead of creating a taxable event? Depending on the mortgage payment and potential rents, it might make sense to keep your current residence and convert it to a rental. Selling a primary residence could yield tax free gains, or it could provide a larger down payment to build in more equity to the new purchase. For buyers over 55, California offers Prop 19 which can allow owners to transfer their “below market” property tax rates. In addition, savvy individuals often structure the purchase or sale terms in order to maximize the tax benefit. Buying within an entity like an LLC or Family Trust can also shield from potential future liability.
If you’ve considered a move in the luxury communities around the Sacramento Region, call me directly at 916.677.9813 and we’ll discuss how to best achieve your goals.
