If you are familiar with the real estate market or you have ever browsed through a real estate listing, then you most probably have come across a “luxury home” ad. Perhaps you wonder what makes a luxury home or thinking about why it is so unique; this article will provide practical answers for you.
For starters, you should know that the term “luxury” in real estate is not just about the high cost you invested in acquiring a property. Instead, it involves many more factors, including the home’s quality, location, luxe amenities, pricing, and many others. Often, the qualification of a luxury home is subjective, depending on the expectations of high-end buyers in a specific region.
Most times, though, factors like those listed above often play significant roles in determining which houses can be qualified as luxury homes and which ones can not. We will further discuss some of these factors below:
Price of the Property
Of course, even though it is not the only qualification, high price is one of the most significant factors contributing to making a luxury home. Most luxury homes today are on the high side in terms of pricing.
However, it is worthy to note that the house’s pricing can also be significantly affected by its location. For instance, a house in Studio City, CA that goes for a million dollars might not qualify as a luxury home. But then, Homeowners and agents would consider a place going for the same price in Hemet among the priciest and most luxurious properties in town.
Generally, prices for luxurious homes can start from $500,000 to $million and even way above.
One other binding factor for luxury homes is that most of them are situated in the choicest locations of a city, state, or country. Their surroundings are often made up of other luxury apartments, top-shelve amenities, and high-class social structures. These things make the area desirable and add to the luxurious value of houses in it.
Also, these areas are continually expanding and developing. This is because as new people move to the location, its scope expands, and unique developmental structures are built.
More so, average areas can be transformed into a luxury hotspot for high-end buyers when a significant developmental project is sited in it. For instance, building a strip of trendy bars and restaurants in an average area can help transform it into a luxury hub.
High-quality Construction and Designs
In luxury homes, the construction details, finishes, designs, appliances, and other house components are often made from the highest quality materials. This is so that the property can easily stand out as an above-average building. Some of the most popular components in luxury homes today include Venetia marble, crystal, hardwood, Miele appliances, etc.
The furnishing of a building is one of the essential qualities most luxury homeowners watch out for. They want furnishing that speaks of affluence and style. They often spend a lot of resources in making sure that the house furnishing and finishes match trendy home decors around the world and that it is above what might be considered moderate.
Some other factors that can contribute to determining a luxury home include provenance, privacy, taste, and much more.
While the definition of luxury in the real estate market can be subjective, there are general factors that most luxury homes today have in common. Some of them have been discussed in this article.