What Does “Luxury Real Estate” Really Mean?
A lot of real estate agents throw around the word "luxury" as a buzzword to get buyers into a home or inquire more about a property. But, isn't the word luxury simply a matter of opinion?
Not necessarily. There are some attributes and stipulations of property typically has when the word "luxury" should be used. Yes, I think that many real estate agents and brokers throw around that term quite loosely, especially when they're trying to upsell a certain property. I certainly wouldn't consider a "luxury" property something that is less than 2000 ft.² on a zero lot line, regardless of the interior fixtures.
Read more: How to Price a Luxury Home
Luxury real estate can mean many things to different people, especially real estate agents and sellers, but here are some simple ways to identify a true luxury property.
Size truly does matter.
Normally people wouldn't consider a 1500 ft.² or even up to a 3000 ft.² home necessarily luxury even though many condominiums could betray that given the location, the view, the price and the interior accessories, however it is quite a stretch. Normally, a luxury home or property will be at least 4000 ft.² or more with a larger lot, or a better location and view if were talking about a condominium. Interior designers also feel that the floor height to ceiling height can make a difference when talking about luxury.
With condominiums and single-family homes, location can identify luxury. For instance: when you think of a home in Beverly Hills you automatically think "luxury". This is not necessarily the case but usually in gated communities with higher end homes in general, the homes can be considered luxury.
View or additional amenities.
Many homeowners and home buyers consider an additional amenity or something unusual about the home a luxury feature such as a gorgeous view of the water, the mountains etc. Luxury homes they also offer different amenities such as a wine cellar, media or theater room, and even extravagant additions such as homes with bowling alleys, "Man Cave" or other unusual rooms or areas in the home.
General condition of features and fixtures.
Many luxury homes will have high end appliances or top-of-the-line fixtures, features and materials. Luxury homes will often boast high end countertops, flooring, window treatments, lighting fixtures and hardware.
Read More: How to Sell a Luxury Home
Now, I have to preface this by saying that price is all relative depending on where you are in the country. A small, 1500 ft.² house in Malibu may be over $1 million but still not be considered a luxury for the area. For the Portland area a $1 million home would probably be considered luxury, especially if it's a single-family home, on a larger lot with all the amenities we discussed previously. What we would consider a luxury property could be over $10 million in California. Price is definitely a factor but it is also relative to the location.
Again, the term luxury is all relative and a matter of opinion. There are some homes that boast the "luxury stamp of approval" without a doubt and others that might be bordering on opinion.
What is luxury to you? Moving from a 600 ft.² apartment in not the best neighborhood to a beautiful 3000 ft.² home on a 1 acre lot may be beyond luxury to you.
Whatever you're looking for I would love to help you find your perfect home. Start browsing my website for free or give me a call and I would be happy to answer any questions you have or get you started on your Portland real estate journey.