Luxury real estate
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Luxury real estate (or luxury property in British English) is the real estate market niche targeted at the highest socio-economic group of consumers.
[edit] Definition
The characteristics that define Luxury real estate differ among countries. However, location largely defines the property's value, especially with respect to whether it offers views (particularly, waterfront ones) or amenities such as proximity to golf courses, school districts, and the downtown district. Thus, a 750 square-foot waterfront home with less than one acre of property might be worth more than a 10,000 square-foot mansion with ten acres of property.
In the previous example, the former would be called a "luxury property", whereas the latter would be called a "luxury home". Both properties, however, owing to their high value, would be classified as "luxury real estate".
Luxury real estate in any particular region is generally defined as property worth more than a certain lower limit; for instance, homes worth more than $1 million in the United States are generally classified as Luxury real estate. The classification also takes into account the presence of surrounding homes, amenities, views, waterfronts, absence of crime-rate, industrialization or unwanted commercialization, customizations of the home, and historical or architectural significance.
[edit] Differences from ordinary real estate
Luxury real estate entails greater responsibility for agents who handle transactions than ordinary real estate. They must advertise to a national audience to attract non-local buyers, whereas ordinary real estate only generally requires exposure in local media. There are also greater legal responsibilities for the luxury estate agent, which often involve attornies, trusts, and anonymity issues. Buyers often require more inspections than with ordinary real estate (which are generally bought after a single inspection).
[edit] External links
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