Define a Luxury Home

Sharon is right on target with her assessment.

On Madeline Island, I know of a small lakeshore cottage.  The cottage is tiny and very modern, probably a modular design.  It is, however, on a gorgeous private stretch of beach with what resembles an ocean view of Lake Superior.  It was built about twenty years ago by a young fellow who works in the film industry in Los Angeles.  He built it as a place to get away from his work and from a frantic lifestyle.

The dwelling itself certainly isn't luxurious, by most people's standards.  But because it's Island property, with superb privacy and beach frontage, many would still consider it a luxury property.

Nice post.  I think you are right about quality, location amenities. Price can certainly vary from area to area. If the location is unique enough - say beachfront, then it can be a "luxury property" even if the house is a fixer upper!

I agree price is not the only factor in a luxury home but rather it is a combination of many factors and whether each one is desirable to the buyer.  In these times, granite finishes, stainless steel and/or viking appliances, jetted tubs, smart home features, views and location.  Each market is different, but within a market, I believe you can initially spot luxury homes by price if they know the range of prices in the area.

In our area, Historic or equine areas play a key role in the Luxury status of a home, too.  I live in a small home(4500 sq ft) with very few amenities, but it is considered 'luxury" because it over looks the oldest polo field in America.

GREAT TIMING - we have been having this conversation in our office lately.  In our opinion price was one of the least important characteristics of a fine or luxury home.  It's much more about the "fit and finish" of the home than the price or the size. 

We came up with some definitions or guidelines to include the following ...

$1,000,000+ price range (which is the far upper end of our marketplace)

Location - outstanding view, waterfront, ski in/ski out, basically the location must be something that stands out from the typical home.

Assessed Value / Construction Cost - rough guideline but we wanted to consider only the upper tier of homes, preferably those in excess of $200/SqFt in building costs.

Size - although not an important or totally exlusive trait, luxury homes should be of a larger scale than a typical home.  Also looked at size of the property/land underlying the home.  We happen to be in an area of some fantastic ranches that should be considered luxury.

No matter what the definition is fluid and for better or worse requires some judgment on the part of the agent. 

Here in Connecticut, we don't have the vistas of the Rockies or the tropical paradise of the Hawaiian Islands-- It's privacy and proximity to New York City that drives luxury and pricepoints.  The old "Location" factor.  That being said, state of the art materials, finishes, and technology also helps.  In this area, size is important, but not all-important.  Last year, I worked with a local developer whose entire purpose was wrapped around quality rather than size.  Environmental and energy considerations, combined with great design and beautiful materials, in a location with a thriving job market-- that's luxury. 

Hi Leo.  Enjoyed this post, very thoughtful.  How is the 2009 Luxury Home market looking in your area now that Spring is right around the corner? Warmest regards to you and best of wishes for your continual success.

Hello Leo.  Although we are about 1hr and 20 min away from each other...give us a call and we will see what we can do for you. 

I am business has been good.  We are launching a new web site next week and currently perfecting a new power point presentation for realtors.  Business is starting to warm up for us. 

Call us anytime 215 947 6727

Warm Regards!