A luxury homes definition varies across different markets depending on the area developments, the median resident income, and on the property values. However, one of the big problems with the real estate listings is that they just tend to overuse the “luxury” word. So, it’s standard starts to be melted away.
If you take a look at different real estate listings, you’ll see that the word “luxury home” can be associated with a kitchen that has new appliances or to a home that only less than 1% of the world population can buy.
So, what does luxury really means?
As a rule of thumb, a luxury home in many of the largest cities in the United States as well as in the metro areas has a starting price at $1 million. However, when you’re talking about New York, for example, this price tends to increase to about $4 million because the demand for luxury homes is higher.
However, the Institute for Luxury Home Marketing, who is responsible for training these high-end real estate agents, tends to evaluate them as the 10% top performing of their market. And this makes perfect sense. This way, they are making the different markets more comparable. In some smaller cities, these top performing professionals have never sold a $1 million home in their lives. However, considering the market where they are operating, they are selling the most expensive homes.
How can you tell if a home is really a luxury home?
Even though there is no checklist for this, the truth is that a luxury home needs to meet some standards. These include a great location, high-end interior finishes such as high-quality kitchen appliances, marble countertops, concierge services as well as other amenities most hotels have, and customized closets, the best spa center, and fitness center, among others.
One thing that you need to acknowledge is that not all luxury homes are the same. There may be some unique features that make a clear distinction between two luxury homes. Just take Chicago, San Francisco, or Los Angeles, for example. A truly luxury home can even be a condo as long as the building was designed by a renowned architect.
As you can see, defining a luxury home is not easy since you need to take into account many different variables including the state and the city where you are, the location, and the interior finishes. Plus, a luxury home can cost you $1 million as it can cost up to $4 or it may not even get to $500K.