Luxury Homes Defined

Although many people envision a luxury home as an ominous mansion on top of the hill that everyone dreams about, the old concept of a huge mansion is really outdated.

In today’s real estate market, a luxury home is quite different from the oversized mansions of yester-year, and for the most part, it’s something much more unique. The idea of a sprawling mansion always comes into mind, but there’s really more to a luxury home than just its size.

A luxury home is usually defined as a property priced within the top 5-10% of a given real estate market. For example, in most markets, a luxury home is usually priced at more than one million dollars, and it also has several distinct features that set it apart from other homes in the immediate area. In most markets, a luxury home has a value of more then one million dollars (or $2-3 million in a few select areas).

Although the size of the home is always a factor, it doesn’t necessarily make it luxurious. For the most part, homes that are considered luxurious are bigger than the average single-family home, but there are plenty more decisive elements that make it stand apart from the rest.

For example, several of the homes in Deer Valley, Utah are considered luxurious because they offer some unique qualities that are unmatched by any other home in the state of Utah (or the entire country, for that matter).

Price is also a factor, but price alone doesn’t always constitute luxury. There are still plenty of cookie-cutter homes that are priced in the $1 million dollar range that aren’t very luxurious.

It’s difficult to define all the exact elements that constitute a luxury home, however, here are several factors that homebuyers consider when seeking the home of their dreams

·         Luxury homes are found in desirable locations, and also offer great views, high security, and nearby recreation/entertainment. So, a large home in Deer Valley would be considered luxurious.

·         Luxury homes include entertainment rooms, media rooms, and large workout areas (or gyms).

·         Luxury homes feature plenty of high-end materials, unique granites, imported tiles, and marbles.

When homebuyers were asked about priorities for their luxury home, 39% of them said it was the overall floor plan, 32% of them said they wanted a fully-automated/wired home environment, and 28% wanted a pool, gym, and home theater.

On a final note of interest, a Caldwell Banker study said that 65% of luxury homes had designer kitchens, 85% of them had an entertainment room (that seated over six people), 57% of them had a wet bar, and 37% of them had a wine cellar.