When you think of luxury homes, you imagine spiraling staircases that wind down into the grand foyer, homes that have a den, a living room AND a sitting room, and at least a half bath for every bedroom in the house. You also picture these homes in perfect condition, with no major work to do. Unfortunately, such luxury homes come with the "luxury" price. However, you CAN get a luxury home for a "red light special" price. Here is how, as well as what you need to do or be willing to do to get the house at such a bargain basement price.
Pick the Most Run-Down House Available
If the home and property are an absolute mess, the property is going to be priced extremely low. Nobody else wants it, despite the fact that it is categorized as a luxury property. Take the dozens of castles for sale in Europe that would require millions to restore to their former glory. If those castles were in mint condition, the price on them would be in the millions. Because they are a mess, most of them can be purchased for less than a million each.
The same holds true for luxury homes in the U.S. None of these are castles, but if you fix them up, they would be quite the mansions. To buy such a home, you have to find the most run-down one there is, and buy that.
Hire a Good Renovation Contractor (or Be Prepared to Do a Lot of Work Yourself!)
A renovation contractor can help you restore most of this property by reconstructing and repairing everything that is present. Then the contractor can help you redo sections of the house for which there is no blueprint, or you just do not like those areas. You will spend quite a bit of money, but if you got the property for pennies on the dollar, it will be worth it.
You can also do a lot of the work yourself if you know how. Then you would only need to hire contractors for the work you cannot do yourself (e.g., electrical, plumbing, etc.). If you DIY, it will save you a lot more money too.
Make Sure the Home Is Inspected Before and After You Start Renovating
It is important to have the home inspected before you start renovating. The inspector will give you a list of everything that is wrong with the house that needs to be brought up to code before you can even live there temporarily. After you have completed all of the renovations, the inspector checks the whole house over again to make sure your luxury home is safe for human habitation. Now, a home that would have cost hundreds of thousands to millions of dollars cost you far less and still looks gorgeous.