Luxury Real Estate – What Makes it so Different?
As most of the major economies of the world prosper so does the niche market of luxury real estate. It is one of the segments of the world that has shown a quick upward trend in its development. This market aims at the richest economic groups of the world.
Definition of luxury real estate
The definition of luxury real estate differs from place to place and also depends on the views that the property offers. The main criteria are the location of the property. If the property is located on a beach with a view of the ocean in the forefront for example, it most certainly would be classified as luxurious. Though this property may not be very large, due to the location, view and the facilities it provides, it becomes a prized possession.
In America, many homes that are worth more than a million dollars are termed as luxury real estate. Thus, we can say a property in any region that is a cut above the others and costs above the normal range of homes is luxury real estate. All properties having high values in terms of dollar amount are in this category. These properties can be large plots of land or a thousand square foot home. The value mostly depends upon the location of the property, the amenities offered in the home or condos, proximity to hospitals, malls, golf courses, high ways, and other important facilities.
How is luxury real estate different from general real estate?
The price of the general real estate is less compared to the luxury real estate. The cost of one luxury home may have the capacity to purchase two, three or four median priced homes. The clients involved and the real estate agents differ from the median priced properties. When purchasing luxury real estate the process of buying the property takes much longer time than the normal real estate in some cases. It is an expensive decision and requires a lot of thinking before any purchase is made.
Marketing differences in general and luxury real estate
The marketing of most homes are sold in the local market where clients can afford to purchase and reside. The target market for luxury real estate may not be local residents at all. Marketing of such property is done nationally as well as internationally. The media used is also different and more expensive than the local media. The agent has more responsibility when selling luxury property. In Many cases attorneys, trusts, inspections, open houses, professional photography, brochures and presentations are involved with luxury homes and condos. The agent has to be all the more vigilant in all these aspects.