Chicago, IL (PRWEB) May 08, 2014
The Federal Savings Bank finds that many are ready to trade up from their simple suburban detached home to a luxury property with a large pool and four-car garage.
According to a recent April 24th survey by Realtor.com, the official website of the National Association of Realtors, many Americans are ready to apply for jumbo loans and upgrade to a more luxurious residence, Of the survey's respondents, 13 percent said they want to trade up to a luxury property, while 26 percent said they are at least considering a high-end home purchase.
"The luxury homebuyer is an important contingent of today's real estate market, as luxury homes tend to drive trends throughout the entire balance of the marketplace," said Barbara O'Connor, chief marketing officer for Move, Inc. "We are seeing large portions of buyers throughout the country - from 23 percent in the Northeast region and 23 percent in the South Atlantic - eyeing luxury homes."
Reasons to upgrade
Realtor.com also asked respondents why they wanted to upgrade to a luxury home. A recent career advancement was the most cited reason, at 19 percent. Not far behind at 17 percent were the luxury property buyers who were newly retired, followed by 14 percent who wanted to make an investment and 12 percent who were first-time home buyers.
What counts as a luxury home?
If one is considering a high-end new home purchase, they likely know that the price tag requires more extensive financing. However, what one regards as a luxury property may differ from other home buyers. Based on regional variations, Realtor.com discerned what respondents considered a high-end price tag. Respondents from the South Atlantic, North Central and South Central regions said a luxury home cost $500,000 or more. Those from the Northeast, Pacific and Mountain regions, on the other hand, said individuals need to shell out $1 million or more for one.
The Federal Savings Bank notes that luxury homes have more substance than just square footage. The high quality of materials, desirable location, upscale lifestyle for the owner, upgraded amenities, and nice floor plans are the key qualifiers. The Realtor.com survey respondents who said they are seeking a luxury home had their own list necessary features:
Chef's kitchen (54 percent)
Views of oceans, mountains or cityscapes (44 percent)
Square footage (38 percent)
Expansive master suite (36 percent)
The importance of securing financing
When these features are combined with the average luxury price of a county, which can vary greatly, the parameters of luxury homes are much different between locations. However, what remains constant is the need for an appropriate home loan. Of the respondents looking to trade up, 8 percent said access to a mortgage loan was a key challenge for purchasing a luxury property.
If prospective homebuyers want to take some of the hassle out of purchasing a high-end home, contact The Federal Savings Bank, a veteran owned bank, to get information about low cost mortgage options.