If you're looking to buy a high-value real estate property, you might want to look at the listings a little differently than you would look at listings for properties of more average values. The following are six things to do when you're browsing million-dollar real estate listings.
Understand that properties might be on the market a little longer
With an average property, being on the market for a long time is a good negotiating point for the buyer. However, this might not be the case to the same extent when it comes to million-dollar properties.
Higher value properties tend to be on the market longer on average because there are fewer buyers out there able to shop in their price range. If you're browsing listings and you see a million-dollar property that's been on the market a long time, don't assume that you can negotiate a much lower price.
Pay attention to the market conditions
It's always important to avoid buying a property when real estate values are high. However, this is especially true when it comes to million-dollar properties. If you buy such a property during a seller's market, you could lose a massive amount of money in equity when prices drop in the future.
Don't put too much stock in the photos
While some real estate agents invest in professional property photos, not all do. Some post photos that they've taken themselves with their cell phones.
Following up on a listing with poor photos can allow you to find a hidden gem. Even with million-dollar listings, photos aren't always a good indication of the quality and appearance of the property.
Discuss listings with your real estate agent
You shouldn't contact the listing agent directly if you see a million-dollar real estate listing that interests you. First, you should discuss the listing with your real estate agent so that your agent can get in touch with the seller.
Figure out how much you can rent the property out for
If you're interested in buying a million-dollar property, chances are high that you'll be using it as an investment property.
If you'll be renting out the property in question, it's a good idea to follow the one percent rule. The one percent rule indicates that the monthly rent for any property you invest in should be at least one percent of the amount you pay for it.
Don't forget the location
It's not uncommon for buyers to be so impressed by the photos of million-dollar properties that they overlook the detail of the property's location. You need to consider the location carefully before following up on any listings you see to avoid wasting your time on a property that won't really meet your needs in the end.