In the real estate industry, there could be quite different guidelines in individual markets to measure where the luxury market begins and the ordinary ends. Much like beauty, luxury is in the eye of the beholder. Luxury means different things to different people.
In the Vancouver area, for instance, million-dollar sales are quite ordinary therefore, the term “million dollar and up” is not a sufficient definition of luxury real estate. To define the luxury market as the top 10 percent of any market versus a fixed value, addresses the markets that have properties valued at less than that $1M fixed value but the term defines the class so broadly, it dilutes the very market we are trying to define and the “top ten percent” does not account for uniqueness.
A better definition of luxury home, starting point and qualifier of a luxury property declares it is two to three times the average price of all homes in a particular geographic market. Luxury properties are anything but average…the above definition guarantees that the properties it identifies are indeed luxury and are positioned at the top of the market.
A luxury property will also possess requisite qualities, those attributes that set the property apart from others in more ways than just price. In its broadest sense, luxury connotes quality, refinement and exclusivity. Perhaps the property has a spectacular view, a much larger lot than others in the area, outstanding architectural details, celebrity value or historical significance.
By developing a sense of the “requisite qualities” pertinent to your specific local market and then utilizing the two to three times average price qualifier and adding to it the requisite qualities, you will know luxury real estate when you see it.