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Can The Average Person Really Buy A Luxury Home?

5 June 2020

Cody Day

Impressive architecture, comfortable amenities, picturesque settings—it is no wonder part of the American Dream is the idea of owning a luxury home. While many people will yearn deeply for this kind of home life, most average buyers will never anticipate being able to buy a luxury home. But, what would you say if someone told you that even an average person can buy a luxury property? It may sound unbelievable, but there are actually homebuyers out there that have done just that. Take a look at a few ways you may be able to get a luxury home even if you don't necessarily have a "luxury" budget. 

Look into REO luxury properties. 

REO (real estate–owned) properties are properties that have been foreclosed on by a lender. The thing is, these properties likely have gone to auction and the sale was unsuccessful, which means lenders enlist seller's agents to try to quickly liquidate the properties. Not always, but in certain circumstances, REO luxury properties can be listed far below typical home values because the lender is looking to recoup losses and keep their costs as low as possible. 

Always watch out for highly motivated sellers. 

Just as it is with regular properties, luxury properties can sometimes have highly motivated sellers. A lot of reasons may motivate a seller to want to quickly liquidate a property, such as if the owner of the home has gone bankrupt and can no longer afford the property taxes or the seller just wants to get out of the home quickly and move on. These properties do not show up often, but when they do, they do not stay on the market long because it is not uncommon for them to sell at really cheap prices. 

Find a luxury property that needs a bit of work.

Even homes that can be listed as luxury can still have issues. For example, you may find a luxury mansion that has sat idle for so long that a few break-ins have occurred and the place has sustained damage due to vandalism. Properties like this often get listed as luxury homes that need repairs, and the price tags can be tens of thousands of dollars lower than usual. As an average buyer, this can mean the home will fall right within your own pricing budget. Of course, you will have to invest in the repairs, but in the end, you have a luxury property worth a lot of money. 

To learn more about luxury homes for sale, contact a real estate agent.

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