Define a Luxury Home

By
Real Estate Agent with Stout Associates Realtors
http://actvra.in/Gb9

Definition of a Luxury Home,

Did you know:

The world economy grew 25% in 2006 according to Forbes magazine (the fastest growth in recorded history), and a record 9.3 million household in the United States now report assets of $1 million or more, not including their home according to research group TNS. This is up 5% from the year before! The growth for 2007 might not be out yet.

Why is this important? The richer America gets, the less rich we(Americans) look, huge deficits, huge export deficits and billions spent in the two wars...But there a few of us who can still live the good live and not worry about the next day. Here is how I think a Luxury Home is defined.

Most agents incorrectly think a Luxury Home is based on its size, well than what is a Luxury Home?

I think is simply what a home offers, like:

1. High quality

2.Great location

3.Nice floor plan

4.Upgrade amenities

5.Upscale lifestyle for the owner

Are there homes like this?... all over.

Still think that size is what makes a luxury home? Think about it for a second. What makes a hotel room a luxury hotel room? It is the differences in the key areas like amenities, quality, view, décor and service. That's why 63% of consumers prefer upgraded amenities and character to square feet when purchasing a home.

Certainly we can all imagine in our minds eye the enormous castle or a fabulous estate on the hill, complete with butlers and maids, but is this an accurate definition of today's Luxury Home? Luxury homes are often described as expensive homes. But cost is only a measure of luxury, a way to measure the differences in any community. Cost can also vary greatly between areas of the country. A luxury home price in the one part of the country may not be able to buy a modest home in another. So price alone is a poor description of a luxury home.

Looking at it another way, luxury homes also include many types of properties from ranches, town homes, condominiums and apartments, to custom homes, villas and brownstones. But one area that all luxury home specialists seem to agree on is that location is a key ingredient to desirability. Location is often a reflection of lifestyle, a key component in the luxury homeowner's decision making process. And therein rests the key ingredient that needs to be understood for real estate professionals that want to move into this growing market niche. According to John Brian Losh, publisher of Who's Who In Luxury Real Estate, "When luxury buyers look for a home ... they look for a lifestyle change - and they want the home to reflect the lifestyle of the area.

Luxury Home Agents please comment.

 

 

 

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Rainer
13,816
Leo Vinteler
Stout Associates Realtors - Wyomissing, PA
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thanx to all for your comments,

Glenda and Steven.. I looked at this listing... is beautiful, good luck with it

Apr 22, 2008 10:54 PM #17
Rainmaker
605,794
Sharon Simms
Coastal Properties Group International - Saint Petersburg, FL
St. Pete FL - CRS CIPS CLHMS RSPS
It's not always about price range - you can have a $2 Million property with a house that's a tear-down or kick-down. It's not always about neighborhood - you can be in an exclusive neighborhood in a 50s home with pink appliances and shag carpet that definitely isn't luxury. So, those who define luxury as the top 10% of the market by price range or 3 times the average price home have to also have the caveat that it must be a luxury lifestyle. Yes, it's in the eyes of the beholder, but there is a certain quality and certain amenities that are required for a luxury home.
Apr 24, 2008 07:23 PM #18
Rainer
13,816
Leo Vinteler
Stout Associates Realtors - Wyomissing, PA
Exqusite Service
I agree with you Sharon, you know what you talking about :))))))
Apr 30, 2008 03:43 PM #19
Rainmaker
333,398
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Sharon is right on target with her assessment.

On Madeline Island, I know of a small lakeshore cottage.  The cottage is tiny and very modern, probably a modular design.  It is, however, on a gorgeous private stretch of beach with what resembles an ocean view of Lake Superior.  It was built about twenty years ago by a young fellow who works in the film industry in Los Angeles.  He built it as a place to get away from his work and from a frantic lifestyle.

The dwelling itself certainly isn't luxurious, by most people's standards.  But because it's Island property, with superb privacy and beach frontage, many would still consider it a luxury property.

Apr 30, 2008 03:53 PM #20
Rainer
13,816
Leo Vinteler
Stout Associates Realtors - Wyomissing, PA
Exqusite Service

Thanks Eric for your comments.. on all my posts...:)))

May 21, 2008 04:10 PM #21
Rainer
13,816
Leo Vinteler
Stout Associates Realtors - Wyomissing, PA
Exqusite Service

Thanks to all of you for your comments...Keep them coming..

I know there are more agents out there on the AR with an opinion about this.. what do you think?

Oct 09, 2008 11:32 AM #22
Rainmaker
68,648
Eileen Begley
Coldwell Banker, DelMonte - Carmel, CA
Monterey Real Estate

Nice post.  I think you are right about quality, location amenities. Price can certainly vary from area to area. If the location is unique enough - say beachfront, then it can be a "luxury property" even if the house is a fixer upper!

Oct 20, 2008 07:54 PM #23
Rainer
10,309
Stacie Robbins
Mammoth Properties - Mammoth Lakes, CA

I agree price is not the only factor in a luxury home but rather it is a combination of many factors and whether each one is desirable to the buyer.  In these times, granite finishes, stainless steel and/or viking appliances, jetted tubs, smart home features, views and location.  Each market is different, but within a market, I believe you can initially spot luxury homes by price if they know the range of prices in the area.

Nov 01, 2008 09:27 PM #24
Rainer
13,816
Leo Vinteler
Stout Associates Realtors - Wyomissing, PA
Exqusite Service

Thanx Stacie for your comment... you are correct about each market has it's differences.. but let me tell you about a home for sale in my area( I showed it once) it had been rehabbed and it has Viking appliances at a stunning price of 155k, not a luxury home but it has the luxury touch-ups to it...

 

Again thanx for you comment and keep them coming.

Nov 03, 2008 12:31 PM #25
Rainer
35,606
Jane Page Thompson
Aiken Properties - Aiken, SC

In our area, Historic or equine areas play a key role in the Luxury status of a home, too.  I live in a small home(4500 sq ft) with very few amenities, but it is considered 'luxury" because it over looks the oldest polo field in America.

Nov 03, 2008 02:02 PM #26
Rainer
11,887
Chris Schreiber
Kiemle & Hagood - Sandpoint, ID
CCIM

GREAT TIMING - we have been having this conversation in our office lately.  In our opinion price was one of the least important characteristics of a fine or luxury home.  It's much more about the "fit and finish" of the home than the price or the size. 

We came up with some definitions or guidelines to include the following ...

$1,000,000+ price range (which is the far upper end of our marketplace)

Location - outstanding view, waterfront, ski in/ski out, basically the location must be something that stands out from the typical home.

Assessed Value / Construction Cost - rough guideline but we wanted to consider only the upper tier of homes, preferably those in excess of $200/SqFt in building costs.

Size - although not an important or totally exlusive trait, luxury homes should be of a larger scale than a typical home.  Also looked at size of the property/land underlying the home.  We happen to be in an area of some fantastic ranches that should be considered luxury.

No matter what the definition is fluid and for better or worse requires some judgment on the part of the agent. 

 

Nov 07, 2008 03:48 PM #27
Rainer
13,816
Leo Vinteler
Stout Associates Realtors - Wyomissing, PA
Exqusite Service

Thanx for all your comments,, Chris, we have a listing now for about 3.5Mill, but is not a luxury home, a small farmhouse with a big need of work but on a  small 287 acres.... our area is about 1mill per 100 acres...

 

thanx for your comments and keep them coming

Nov 18, 2008 09:06 PM #28
Anonymous
Anonymous
john...

Hi guys.. I enjoy reading about you agents from all over the county, I am a luxury home owner, not an agent, and I agree, there is something special about you guys. When do you have the time to stay on these blogs and talk about this?

Leo you seem like a nice knowledgeable YOUNG guy... I wish you good luck,,, you have the correct definition about luxury home: Location, amenities, neighborhood and the kind of home that most people wish to have. I live in Seattle but if I lived in your Pa part of the state I would give you a chance...

To all of you other agents, you are all great agents, I wish you good luck in this messy market...

 

 

John. B

Dec 02, 2008 08:53 PM #29
Rainer
8,225
Debbie Gilbert
Century 21 Clemens & Sons Realty - West Hartford, CT
Farmington Valleynulls Finest Homes, West Hartford, CT

Here in Connecticut, we don't have the vistas of the Rockies or the tropical paradise of the Hawaiian Islands-- It's privacy and proximity to New York City that drives luxury and pricepoints.  The old "Location" factor.  That being said, state of the art materials, finishes, and technology also helps.  In this area, size is important, but not all-important.  Last year, I worked with a local developer whose entire purpose was wrapped around quality rather than size.  Environmental and energy considerations, combined with great design and beautiful materials, in a location with a thriving job market-- that's luxury. 

Dec 07, 2008 04:37 PM #30
Rainer
13,816
Leo Vinteler
Stout Associates Realtors - Wyomissing, PA
Exqusite Service

Debbie thanx for your comment...

 

see my email

Dec 08, 2008 04:04 PM #31
Rainer
1,930
Aron Bailey Bruser
Win-Win Home Staging & Redesign - Huntingdon Valley, PA

Hi Leo.  Enjoyed this post, very thoughtful.  How is the 2009 Luxury Home market looking in your area now that Spring is right around the corner? Warmest regards to you and best of wishes for your continual success.

Mar 13, 2009 01:19 PM #32
Rainer
13,816
Leo Vinteler
Stout Associates Realtors - Wyomissing, PA
Exqusite Service

Hi Aron...Business is been good.. had some great buys in the first two months of this year.. Listings ... not too much but we will be OK...

 

How is the staging going.. you know, I have been trying to find a good staging person in my area and worked with a few but they are not in business anymore...

Mar 18, 2009 09:09 PM #33
Rainer
1,930
Aron Bailey Bruser
Win-Win Home Staging & Redesign - Huntingdon Valley, PA

Hello Leo.  Although we are about 1hr and 20 min away from each other...give us a call and we will see what we can do for you. 

I am business has been good.  We are launching a new web site next week and currently perfecting a new power point presentation for realtors.  Business is starting to warm up for us. 

Call us anytime 215 947 6727

Warm Regards!

Mar 18, 2009 09:51 PM #34
Anonymous
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Feb 22, 2010 12:25 PM #35
Anonymous
Anonymous
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Oct 14, 2012 08:38 AM #36
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Rainer
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