I get so many questions about luxury homes in Tippecanoe County, so I thought we’d dive into buying a luxury home in our area. P.S. I did a fun roundup of the most expensive homes sold in our county in 2021, so check it out here. Such gorgeous homes!
Defining a Luxury Home
What is a luxury, or high-end, home? How do you define what that is? Typically, luxury homes are the top 10% of the properties by price in a specific area. Often, high-end homes are considerably larger than other homes, are located in an optimal area, are constructed with high-end materials, and/or are designed with uncommon architectural details and amenities.
What does a luxury home price look like in Tippecanoe County? There were 2516 homes sold in our county in 2021. The top 250 homes were listed for $409,000 and higher, and the highest listing price was $1.295 million. So, for now, a luxury home in Tippecanoe County is anything priced over $409,000. (Stats per the IRMLS 1/1/2021 to 12/31/2021.)
What a Luxury Home in Indiana Looks Like
In the Hoosier state, while architectural details and high-end materials matter, many luxury homes are valued the way they are because of the LAND that comes with them. Luxury homes in Tippecanoe County average about 2.64 acres of land. The homes are also fairly large, averaging 3,995 total finished square feet per home.
However, a luxury home can be many different things. You might have an older home with tons of great land. Or you can have a huge, historic home on a small lot. There are so many factors to consider, especially when it comes to pricing a luxury home for sale or negotiating a purchase. A seasoned agent can help you understand the nuances of the local luxury market. Finding an expert, as always, is key.
What Buying a Luxury Home is Like in This Market
The price tag of a luxury home has only gone up in this crazy market (just like everything else). Just a few years ago, luxury in Tippecanoe County was anything over $360,000.
Low interest rates have helped keep the luxury sector of the market moving, as well as the work-from-home trend that is a side effect of the pandemic. Many people who used to work in coastal regions have moved to be closer to family and friends and are now enjoying the lower cost of living in the Midwest. $500,000 might buy a small home with a small lot on the coast, but it often buys a large home and beautiful lot here! Many who have come here might have been lifelong renters who are enjoying homeownership for the first time.
Tips for Buying a Luxury Home
Buying a luxury home can be a little different than buying a less-expensive home. Here are a couple of tips.
1) Work with an experienced, local agent. When you’re spending a lot of money on a unique home, it’s important to work with an agent who understands the nuances of the local market and can help negotiate the purchase contract and guide you accordingly.
2) Plan your financing. Are you going to need a jumbo loan, or do you have other special financing considerations? More expensive homes often require that you’re well qualified to purchase the home, sometimes before you even schedule a showing. In this case, going with a bank you already have a relationship with can be helpful.
3) Sometimes luxury homes aren’t listed on the MLS, especially if the home belongs to someone with name recognition. Not listing the home on the MLS can help protect the seller’s privacy. Again, having a connected real estate agent is key so he or she can keep you informed about what’s actually on the market.
These are just a few of the things to think about when buying a luxury home. If you’re interested in buying a home this year (luxury or not!), reach out—I’m here to help.
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