The Definition of LuxuryOctober 4, 2010
When does a house qualify to be referred to as a “luxury home”? While there is no absolute rule for applying the
designation, we can approach the issue by considering the home’s location, size, cost andamenities.
Location is a significant factor in determining the value of any property. Aluxury home in California, New York, Boston
or Washington will cost far more than a comparable home in a less developed part of the country. For the price of an
ordinary three-bedroom singlefamily residence in California’s Silicon Valley, you could probably
purchase a roomy ranch with acreage in rural Missouri. Luxury homes also come in a remarkably wide range of
sizes. Realtors in New Orleans, Louisiana list fourbedroom, three-bath plantation style homes whose only luxury
amenity is a swimming pool. Compare that with Southern California, where there are enormous mansions with forty
bedrooms, movie theaters,spas, sport courts, elevators and commercial gradekitchens. Both the $3 million four-bedroom and the $30 million
forty-bedroom properties are listed as luxury homes. Industry standards describe luxury homes as any property
that falls within the top 10 percent of an MLS area’s annual home sales. A luxury propertyshould be listed for at least
$500,000. After that, the sky’s the limit.
For professional advice on all aspects of buying or selling real estate, please contact me at [email protected] or
305-960-2575, or come by the office at 355 Alhambra Circle, 9th Floor, in Coral Gables