This is never more true than when looking for properties in "out of the way" locations such as mountain or resort destinations. Of course, it is also determined by personal opinion. Bryan Robertson may be a real estate agent in Los Altos, CA but his comments will ring true for those looking to buy Blue Ridge GA real estate as well.
What constitutes high-end varies greatly from one market to another. The term high-end has many synonyms including luxury home, mansion, and estate home. Even within Silicon Valley, what constitutes high-end in San Jose would be entry-level in Los Altos. High-end is a relative price that typically starts at 150% of the average sales price in any given market. That's a rule of thumb but it generally works in most markets, but down to the town level - not necessarily larger geographic areas.
In Los Altos, the average and median prices are about $1.7 million which puts the "high-end" of the market at about $2.5 million. That's about right. The level of quality and size goes up substantially once the price goes over $2 million and by the time you get to $2.5 million, you get a home with 3000-4000 square feet on a nice lot in a good location. That price point is what I consider the low end of the scale for high-end or luxury homes.
As prices rise there's a point where the home falls into the "ultra high-end" or "ultra luxury" market. Based on my experience, that market starts at about 300% of the average selling price in a market. In Los Altos, that puts the price at about $5 million which is very high and there are only a few homes that have sold or been on the market in that price range.
For home buyers in the high-end market, the higher up the listing price, the more leverage they have to bring it down to a lower sales price. That's just the way that market works. Sellers often list homes at priceswell beyond the final sales price as a hedge against the buyers in the market. For example, it's common to see a home listed at $4.5 million in Los Altos see a final sales price at $4 million - a 10% drop. My advice to buyers is to focus on what they want and remember that there are plenty of comps to support a reasonable offer.
If you're looking at high-end homes in Los Altos or Los Altos Hills, talk to me and I'll show you the data to make a great offer on both on and off market properties. The home in the picture is one of my listings.
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Bryan Robertson, Broker Associate | T: 650.799.9951 | Email: email@example.com | Website: http://www.BryanRobertsonHomes.com |CA License: 01191946 | Sereno Group - Los Altos branch | 369 S. San Antonio Road | Los Altos, CA 94022
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