Whether buying or selling a home, luxury real estate takes place on a higher level than a regular transaction, each aspect should be more detailed to ensure both parties are satisfied that they have received a fair result.
A high dollar transaction means there’s more at stake for both the buyer and the seller, which is why market research, home preparation, and due diligence are all more involved. In this post, we’ll talk about what to expect during a home inspection for a luxury property.
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Defining Luxury Real Estate in Toronto
It can be challenging to pinpoint precisely what a “luxury” property even means. The definition in Toronto could also be considered vastly different from a house in a smaller, less populated city.
To many people, a million-dollar home seems exorbitant. In Toronto, it’s about average. A standard detached home could actually be closer to $2 million. Whatever your definition in terms of real estate, luxury goes far beyond the house and extends into your day-to-day life. Access to high-end shopping, breathtaking parks, and a host of modern conveniences aren’t just fabulous extras; they’re the minimum expectation for an upscale buyer.
When it comes to the house itself, large lots with space for entertaining and possibly an entire swim spa and outdoor kitchen are common, as are fully custom designs and high-end finishes. Homes like these typically need an inspector with more specialized expertise and experience with premium houses. In addition, you can expect the home inspection to take more time.
Are you looking for your next place to call home? The posts below will help you get started:
- What Are Etobicoke’s Most Luxurious Neighbourhoods?
- Must-Have Features for Luxury Home Buyers in Etobicoke
- 7 Signs You’ve Found The Right Home
Why Conduct a Home Inspection?
The answer to how long a home inspection takes depends on many factors, and the answer is always unique to the transaction. To better understand the process, it will help to explore all of the reasons for requesting an inspection in the first place.
- Every buyer wants to ensure they are getting value for their money and to avoid any expensive and stressful issues after they move in. This is even more true when they are committing to a luxury purchase.
- A pre-listing inspection can also help a seller. It shows that you have confidence in the quality and value of your home, which helps to reassure a potential buyer. Since you have performed this due diligence ahead of time, the buyer may feel more comfortable in skipping their own inspection or removing the condition from their offer.
A faster and more profitable sale could be the result of taking this due diligence in advance. In addition, arranging a pre-inspection allows you to spot minor issues that are easily fixed but could otherwise become a deterrent to a potential buyer.
The Scope of Luxury Real Estate Inspections
Typically, a home inspection is designed to uncover latent defects in a house that wouldn’t be obvious during a casual walk-through. Everyone deserves to know exactly what they are getting, especially when committing to a real estate purchase.
At the luxury level, the process is similar, but far more extensive in scope due to the size of the house and any custom elements it may feature, such as wine cellars, home theatres, or smart technology. An experienced inspector will scrutinize all aspects of the property, paying particular attention to its structural integrity, plumbing, electrical, HVAC systems, and more.
They will ensure the roof is in good repair and that the attic and basement are structurally sound. Let’s not forget the insulation, as faulty installation or outdated materials could make heating and cooling a home more expensive than it needs to be. The inspection will also include an assessment of the home’s exterior, such as the grade, gutters, doors, windows, and any chimneys.
Has the time come to sell your Toronto home? The posts below will help set you up for success:
- What Are The Secrets Of Staging A High-End Home In Toronto?
- 3 Tips For Selling Luxury In The Current Real Estate Market
- What Buyers Want in Toronto Right Now
Inspection Results Could Impact Your Next Steps
If repairs are necessary, a seller has the option of making them beforehand to enter the market at a higher price point – or offering a concession and allowing the buyer to decide for themselves. If everything checks out and your house passes the inspection with flying colours, your listing will hold even more appeal to potential buyers – especially those looking for a move-in ready home.
When buying a property, the results of an inspection can be a sign to walk away and keep searching for a home that better suits your needs. You might also decide to have your agent negotiate for better terms. If you plan to remodel the home anyway, a few flaws might not be a deal breaker and could position you to secure the home at a lower price.
Whatever you choose, a knowledgeable real estate agent with expertise in luxury homes is essential. Under their professional guidance, your selling or buying experience will be positive and memorable.
Do you have questions about buying or selling your home in today’s market? Reach out anytime to ana@asantos.ca or call us at 647.232.7317 to learn more about our concierge real estate services.