One straightforward way to tell a luxury home apart from an average listing is to peer at the asking price. The more zeros that appear at the end of the cost, the more likely it’s a luxury property.
However, this purely economic understanding of luxury doesn’t take into account the myriad features, characteristics, and contexts that define a luxury real estate property. Moreover, factors like local market conditions and selling circumstances can influence the price tag in one way or another, making the isolated dollar value even more unreliable as a bellwether of luxury value.
So, what exactly defines a luxury home, if not the asking amount? This article analyzed the featured luxury properties from top realtors like Harvey Kalles to identify three of the most significant defining characteristics.
A Compelling Story: History, Architecture, and Previous Owners
History, architecture, and previous owners (pedigree) can play a significant role in determining a luxury property. Collectively, these characteristics comprise a home’s “story” – all of the non-material value and prestige that define a home.
A great example here is a heritage home. A heritage home often has a long, storied history in a city district that stretches back to the beginning. It features an elegant architectural style, such as Georgian, Gothic Revival, Bay-and-gable, Tudor Revival, or Edwardian, etc., that stands out as bespoke against more modern styles. And it might even have a famous figure attached to its past, like a politician, founding figure, or celebrity.
Best Features Forward: High-End Luxury Features
Story is one way to look at luxury. However, some high-end buyers would rather have a modern build flush with luxury features – that’s their definition of the good life.
Luxury features can include impressive on-site installations like a home spa, home movie theatre, wine cellar, tennis courts, or pristine swimming pool. They can also be architectural features like vaulted ceilings, pillared archways, or turret nooks. Or they can be situational, like an unobstructed view of the city skyline or unparalleled privacy.
Likewise, it can be the materials used in the home’s construction: Marble, granite, quartz, and hardwood for that high-end look; triple-glazed glass windows for efficiency; accents like bronze and copper for a more rustic ode, or even bald concrete for a more post-modern feel.
Location, Location, Location: How Geography Dictates Luxury
They say location is everything in real estate. It certainly means a great deal in the luxury market.
A good location can offer luxury buyers a sense of opportunity and comfort, featuring high-end amenities, good schools for their kids, and ample green space to break up the density. But there’s also a level of built-in exclusivity in high-net-worth areas. Like a country club, you can schmooze and network with people in your own financial strata, potentially making business connections. Lastly, there’s just something prestigious about certain area codes – they have an ingrained reputation for being status symbols.
If you’re on the market for a luxury home, consider these three central characteristics. Every buyer is different (with varying tastes and sensibilities), but story, location and features are at the heart of nearly every luxury home.