3 Things You May Not Know About Buying Luxury Real Estate

3 Things You May Not Know About Buying Luxury Real Estate

Whether you are searching for a contemporary high-rise or a Spanish villa, Santa Clara luxury homes offer some of the most spectacular real estate in California. Yet, it can be overwhelming to find a home that meets all your needs while providing the amenities you desire. So how do you navigate Santa Clara’s luxury market, and what are some things to consider during the house hunt? Here are three things you may not know about buying luxury real estate in Santa Clara.

There are multiple financing options available

Real estate is one of the most important investments anyone will ever make. Regardless of your needs and price point, a certain amount of risk is associated with purchasing real estate. This is especially true if you require financing for your dream home. Before the house hunt begins, you should determine how you will pay for your new place. If you are a cash buyer, purchasing a home is a straightforward process. All you and your agent need to do is provide proof of funds upon an accepted offer. Cash offers typically close anywhere from seven to 10 days upon an accepted purchase agreement.
When financing is involved, on the other hand, the process gets a bit more complicated. For lower price points, most buyers will typically take out either a conventional or government-issued home loan, such as an FHA or VA loan. However, these loans have loan maximums, which luxury real estate often are priced out of.
Fortunately, lending institutions have loan options catered explicitly to luxury real estate. While there are many types of loans out there, some of the most popular financing options for luxury real estate include:
  • Jumbo mortgages - loans typically cap at $2 million
  • Super jumbo mortgages - loans higher than $2 million (the cap is at the lender’s discretion)
  • Bank statement loan - typically offered to self-employed buyers; buyers typically qualify based on monthly bank statements rather than tax returns.
  • Non-QM (non-qualified mortgage) - typically offered by subprime lenders; not a typical option; not recommended in most cases
When applying for a loan, one of the most important things you can do is meet with different lenders and determine your options. Your lender should be experienced with luxury real estate loans. Once you and your lender find a loan option that is right for you, you are one step closer to finding the luxury home of your dreams.

Working with the right agent matters

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Luxury real estate is a high-stakes venture. It can be challenging navigating Santa Clara’s competitive real estate market, all while simultaneously searching for your dream home. Even when you find your ideal property, you could be competing for the same property with multiple buyers. So what happens if you are working with an agent who can’t help you navigate the market or even help you find what you are looking for?
Then it’s time to find an agent who can. Working with the right real estate agent can make or break your sale. This is especially true in the luxury market. Choosing your realtor takes a great deal of thought and consideration. It should not be an impulse decision but treated with the same care as finding a business partner.
So how do you know whether or not you have chosen the right agent for the job? Here are some essential qualities you should look for in an agent:
  • A local expert within your specific market (e.g., Santa Clara luxury real estate)
  • Years of industry experience and extensive knowledge of the area you are searching in
  • Referrals and credentials readily available
  • A structured plan and timeline for your house hunt
  • They understand your wish list and prioritize your needs accordingly
  • They are clear communicators who are fully attentive and responsive
  • Keen negotiation skills
When speaking with your prospective agent, ask them as many questions as you need to make an informed decision. Choosing your agent is one of the most critical aspects of the home-buying process.

How to determine a luxury home’s value

Luxury real estate is a more than one-size-fits-all scenario. Every single buyer has a unique perspective on what makes a home luxurious, yet there are certain traits every prospective homebuyer should look for when searching for a luxury property. Location, amenities, and finishes are prime examples.


First and foremost, location is one of the most critical aspects of any property search. For example, properties in secluded areas with plenty of acreages command a higher asking price than properties located near a busy road. This is because luxury buyers generally value privacy and space versus easy access to freeways. Location can also determine how much homeowners pay in property taxes since property taxes are divided into jurisdictions. Paying close attention to your local property taxes can save you tons of money.


Another aspect of luxury real estate most buyers pay attention to is amenities. This can include amenities on the property, such as swimming pools, spas, fitness rooms, SMART home technology, and more. Even beyond the home, luxury buyers pay attention to what is nearby. This can include easy access to shopping, dining, and entertainment options.


When searching for a home, many buyers should also look at the finishes within the home. Custom finishes, such as imported tile floors, wrought iron staircases, temperature-controlled wine cellars, coffered ceilings, and other features can add significant value to any luxury property. Generally, the more custom finishes there are in a property, the more valuable the home is. This is because luxury buyers pay for quality.
Buying a luxury home can be an intricate process. With many moving parts, it can feel overwhelming at times. Yet, if you arm yourself with the right resources, finding your luxury home can be a dream come true.
Are you ready to take your property search to the next level? You deserve to work with the best when searching for luxury real estate. With years of industry experience and Santa Clara real estate expertise on his side, trust Martin Quintana to help you find your dream home. Contact Martin today to get started on your house hunt.

*Header photo courtesy of Shutterstock

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