April 13, 2017
How to Define Luxury Real Estate in Today’s Market
If you say a word enough times, it starts to dilute the true value of it. In the game of real estate, using the right terms the right amount of times is crucial. Likewise, when the majority of homes currently on the market are marked as “luxury”, you start to question the influence of the phrase and it becomes overused.
As we all know, luxury real estate is defined differently across different markets. Different factors contributing to these differences include: property values, median resident income and area development.
However, the term luxury has recently been used to describe everything from the ultra-luxury homes of the world’s wealthiest 1 percent to a modest kitchen with new appliances. How can you assess how luxury is defined in your area, and how can you utilize that information to better meet your expectations as a home buyer?
When looking for the qualities you want and need in a home, it’s important to know your market and what it defines as “luxury”.
In many large U.S. cities and metro areas, the typical luxury price point is $1 million and above. However, this varies from area-to-area, so the price tag isn’t the main component of defining luxury.
There’s no absolute checklist for labeling a property as luxury (wouldn’t that be nice though?), but there are many features that area common among upscale properties throughout the U.S.
Prime location, high- end interior finishes, professional-quality appliances, and extra amenities oftentimes are indicators of a luxury home. However, some homes tip over the edge of luxury due to unique features, such as a prestigious architect or being in a gated community.