The most luxurious homes on the spectrum are beginning to trend in the greater Orlando, Florida metropolitan area. Recent reports from the Orlando Business Journal have shown that homes of the highest caliber are emerging on this central Florida market, including many homes that have sold in excess of $10M. At the highest end, one mansion even commanded a $35M price tag. Buying and selling a home in the ultra-luxury market in any U.S. city requires learning the tricks of the trade from an experienced set of professionals. Let’s see what the experts have to say about this market segment in Orlando.
Buying a home in the ultra-luxury market in Orlando will likely require a buyer’s agent
Scouring the MLS listings for the most luxurious homes in the Orlando market will certainly turn up some results. But market experts will tell you that many of the top homes in the area will not be publicly listed. Here is why.
To protect their privacy, many owners in the ultra-luxury Orlando market will not have their property listed on the MLS. A good number of these homeowners are higher-profile individuals. They only want the most qualified prospective buyers to enter and tour their homes. This requires an extensive vetting process, so that it saves them and their agents time.
If you want to purchase a home in the ultra-luxury Orlando market, an agent with experience in this market segment is a must. While there are a good number of experienced agents in Orlando who can help find you a home, it takes a certain type of agent to find you a home in the luxury market. These agents specialize in these homes, taking years to build up the necessary contacts and honing their skills and reputations to have word-of-mouth referrals from sellers and their agents to make it possible for qualified buyers to tour these homes.
When looking for ultra-luxury real estate, be sure that your agent specializes in this market.
Financing an ultra-luxury home means coming to the table financially prepared
Homes that have a higher price tag will mean a little more preparedness on the part of the buyer. If you are looking to get a mortgage for a home in the ultra-luxury Orlando market, you’ll need to take note of the following.
A mortgage broker will use your credit score and income to determine your debt-to-income ratio. This lets a lender know how much home you can afford. In a typical mortgage situation, this will be enough to get you prequalified. But with higher-priced homes, there’s a bit more to it.
There are conforming loan limits that most lenders adhere to. For a loan to be backed by the federal government, the cap will be between $510,400 and $765,600, depending on the market. A home that carries a hefty price tag means that you will need a Jumbo Loan. These are not offered by just any bank or mortgage lender. So when shopping for a home loan, be sure that your broker has access to institutions that back this type of loan.
If you choose to pay cash, you won’t need to worry about Jumbo Loans or mortgages. But to get prequalified, you’ll need to prove your financial worthiness. A letter from your banker or brokerage company, accompanied by the most current statements, will be required. Show these to your agent, who will take them to the seller’s agent and prove to them that you financially qualify for the sale.
Homes in this market are about the location as much as they are the structure
The homes are massive, possess the most modern luxury amenities, and are among the most ornately designed houses in Orlando. But the locations are just as important.
Many of the Orlando neighborhoods that are comprised of ultra-luxury homes are in areas that make up part of the price tag. Tightly secured gated communities, beautifully landscaped roadways and sidewalks, luxurious communal clubhouses and more are what make these neighborhoods just as luxurious as their homes.
If you are selling your ultra-luxury home in Orlando, consult with a real estate agent first
As a seller of ultra-luxury Orlando real estate, you will certainly want the guidance of an agent who specializes in this market. You will want any potential buyer to have been carefully vetted and prequalified so that your privacy and safety are protected. Be sure the agent you select has the background in this market segment, as their connections to qualified buyers will play strongly in how smoothly this transaction can be executed.
The current state of the Orlando ultra luxury home market and the predicted trends
The real estate market in Orlando began to cool over the spring of 2023, with the rise in interest rates. But while the number of luxury homes sold has dropped, the median home prices have been on the rise again in this metro area. The demand for the homes have consistently outweighed the supply of them, keeping median home prices high.
Morningstar predicts that the Federal Reserve will begin to drop interest rates in February 2024. This will further generate demand, and make prices likely rise even further. When interest rates drop, the demand for homes in the ultra-luxury market will also be impacted, as more potential buyers will attempt to enter this niche market.
Ready to buy or sell in Orlando?
Buying or selling a home in any real estate market should require careful planning and a solid strategy. To get the most out of your transaction, the professional guidance of a real estate agent is strongly recommended. Whether buying or selling property in Orlando, you will find that teaming with an agent will save you time and stress, as well as financially maximize your transaction. The Suzanne and Chad Team have the experience and contacts in the ultra-luxury market to help you find the home of your dreams, or to sell your current home to a qualified buyer. Consider a consultation with them today.
*Header photo courtesy of Shutterstock
