When you think of Luxury Real Estate, you may hear the voice of Robin Leach from, “Lifestyle’s of the Rich and Famous”. Then again, you may just define a luxury home by the price point alone, sans British accents and celebrity owners.
The standard definition of Luxury Real Estate is the following:
“…real property that has an appraised value of over $1 million in the United States, yet this varies greatly depending on the location. 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”.
All of the aforementioned criteria can certainly be applied to determine a property’s luxe status, but some would argue what is more important (and more easily defined) is what a luxury property is NOT.
Ordinary Real Estate vs Luxury Real Estate
High end appliances, stunning architecture, historic significance, extensive professional landscaping, high end finishes, intricate detail, media rooms, the list goes on and on when describing the elements of a Luxury Home. However, Roberta Murphy, of Luxury Home Digest, argues that just because a home has a seven figure price tag does not automatically result in the house being designated as a “Luxury Property”. The idea of the 5,500 sq ft “McMansion” is viewed more as an “upper class suburb” and less as an honest to goodness Luxury Home. Murphy states,
“Price alone does not distinguish that status. It is location, property entry, arhcitecture, decor, decadent amenities, entertainment capability, lovely grounds and myriad other details that help a home stand out from the ordinary. A supersized McMansion does not qualify as a luxury home, unless it has the requisite extras, superior location and a view….”
With that said, a Luxury Home could be 750 square feet or 11,000 square feet. It can be several hundred years old or the most modern home available. Furthermore, it can be in any part of the United States, in rural or metro areas. Whatever definition you use, it is safe to say that Luxury Real Estate must have presence and “panache”.
Your Real Estate Professional’s Role
Luxury Real Estate transactions also mean a greater responsibility for Real Estate Professionals who handle these transactions which can be significantly different from “ordinary Real Estate”. Extra consideration must be given in making these sales and/or purchases. Here are a few examples:
Legal Matters- There may be greater legal responsibilities for the Real Estate Professional and home Seller/Buyer which may necessitate measures that involve attorneys, trusts, and special stipulations for/of the Buyer or Seller.
Inspections- Typically there are multiple inspections, surveys, and possibly more complex title work.
Anonymity- Since many luxury homes are owned by high profile individuals, there is a higher likelihood that a party to the sale might desire to maintain their anonymity.
Advertising- The pool of eligible buyers may not be present in the vicinity of the home unless it is in a higher density area (for example California, New York etc). Typically the more unique the property, the more likely a Real Estate Pro will need to advertise to a national audience to attract more potential buyers.
Whether you are looking to buy or sell a Luxury Property, it is important to make sure you use a Real Estate Professional who is knowledgeable and who can guide you through the process of negotiating the purchase or sale of a higher end property.
Luxury Real Estate in the Media
Aside from the page of celebrity Luxury Homes for Sale in People magazine, where can today’s Buyer or Seller find more of these properties? Most companies operating in the Luxury Real Estate market have their own print publication as well as a strong presence online. Some well recognized names in Luxury Real Estate are Coldwell Banker, Christies, and Sotheby’s International. Reportedly the Coldwell Banker® Previews®program, has “discreetly represented some of the world’s most prestigious real estate, including three out of five of the priciest homes in the U.S. The most expensive celebrity real estate in the United States, “The Manor,” originally listed at $150 million, was sold by Coldwell Banker Previews International in 2011.***”
Luxury Real Estate in Knoxville
If you are interested in Luxury Real Estate in and around Knoxville, then take a look at the 1 million dollar plus homes below. In this area of the country, many of these high end homes are centered near a body of water, have a mountain view or may be on a large parcel of land. There are many newer luxury homes that have been built as well as a wealth of unique historic homes that fall into this category. Whatever your style, I am sure you will find something beautiful to enjoy.
***Coldwell Banker Website/Forbes