Luxury homes vary greatly in size, type, price and style, although they share certain commonalities. For one, location is key for luxury real estate. A discerning buyer knows that the only real buffer from depreciating prices is roosting in a well-established neighborhood near all the amenities. Thats why the Cherry Hills Village neighborhood — nestled just six miles south of the city, adjacent to the Cherry Hills County Country Club and the Glenmoor Country Club — is Denvers most affluent area, not to mention the nations second most affluent neighborhood. Prices are high and estates are created with all the bells and whistles because, well, people want to live there! People want to be near where they work, where they play, where they dine, where they shop, where they relax outdoors. Frequently, communities are built or renovated in downtown corridors in trendy districts that offer residents the world right outside their doorstep " for instance, Georgetown in Washington DC. These reasons account for the popularity of condominiums or townhouses as luxury homes " because they could be easily constructed in smaller spaces right in the heart of the action.
Of course, the suburbs have traditionally been a welcome respite for luxury real estate buyers too. Not everyone can handle the hustle and bustle of the city with its pollution, traffic, noise and congestion. Quaint suburban neighborhoods also allow more space for impressive estates and backyard paradises. Much of the ritziest Scottsdale, Arizona luxury real estate can be found around golf courses and country clubs with lush, green grass and wide open spaces. Often luxury homes, like Lake Oswego in Portland, are nestled around a lake, a river, the ocean or another water feature, which increases the property value and makes for a more desirable place to live. The suburbs and waterfront luxury homes are also typically associated with less unwanted commercialization and less crime than the city, which makes these properties more coveted as well.
Luxury property is defined primarily with location aspects in mind, although some people think in terms of dollar signs too. In the United States, luxury real estate is typically defined in monetary terms as any home costing more than $1 million dollars. However, in desirable markets like San Francisco Bay, houses have been bid upon in auctions starting at $3 million and escalating to $5 million, with ten buyers raising the stakes. With all this Google money floating around, will $2 million become the next $1 million? What qualifies as a luxury property keeps going up, explains Michael Polzler, executive VP of RE/MAX. It really amazes me that we have so many luxury buyers out there and the challenge is finding product. In Oahu, Hawaii " where a home just sold for $18 million " its hard to imagine that $1 million would carry the luxury homes moniker.
The luxury real estate market presents some unique challenges to the real estate agents that oversee these types of transactions. For instance, since luxury homes appeal to out-of-state investors who want to expand their rental property empire, add a vacation home to their portfolio or relocate for retirement, its important for realtors to find appropriate marketing avenues. One would think the Internet would have the best capability of reaching a sprawling audience; however, the richest of the rich cant be bothered sifting through tedious pages of sub-par properties. Instead, luxury real estate magazines with glossy pages, high color professional photographs and well-written descriptions have proven to be an effective medium to reach this affluent demographic in markets like Sacramento, Portland, Phoenix, Hawaii, Washington DC, Tampa, Scottsdale, San Francisco bay, Denver and Dallas.
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