As the world economy goes stronger, more people are becoming financially able to afford luxury real estate. This tiny percentage of the world population is showing a quick rise. This group is where the richest of the rich belongs- those who have almost a lifetime source of income.
Definition of luxury real estate
The definition of luxury real estate differs from one place to another. Sometimes, it also depends on the perception of the buyer on what a luxury real estate is. If the property is beachfront, it is most certainly classified as luxurious. Though this real estate property may not be very huge, views and the facilities it provides, it becomes a luxury possession.
In America, many homes that are worth more than a million dollars are called as a luxury real estate. Thus, we can say that a property in any region that is a cut above the others and costs above the normal range of homes in that area is a luxury real estate. All properties having high values in terms of dollar amount are in this category. These properties can be large areas of vineyards, lakefront, or big mansions equipped with high-class fixtures, appliances, and furniture.
The value mostly depends on 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 the general real estate?
The price of the general real estate is lesser 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 a luxury real estate, the process of buying the property takes much longer time than buying a regular house. It is a very expensive decision and requires a lot of thinking before any purchase is made.
Marketing regular homes are sold in the local market where clients can afford to purchase and reside. The target market for the 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 the luxury property. In many cases, attorneys, trusts, inspections, open houses, professional photography, brochures, and presentations are involved with in selling luxury homes and condos.