Luxury real estate

Luxury real estate (or luxury property in British English) is the real estate market niche targeted to high-net-worth individuals. These individuals tend to own multiple homes in numerous locations across the world.

Definition

The characteristics that define luxury real estate differ among countries.[1] However, the 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.[2] Thus, a 750-square-foot (70 m2) waterfront home with less than 1-acre (4,000 m2) of property might be worth more than a 10,000-square-foot (930 m2) mansion with 10 acres (40,000 m2) of property.

Luxury real estate is often defined as 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.

Differences from ordinary real estate

Luxury real estate entails greater responsibility for agents who handle transactions than ordinary real estate.[3] They must advertise to a national audience to attract non-local buyers, whereas ordinary real estate only generally requires exposure in local media.[3] There are also greater legal responsibilities for the luxury estate agent, which often involve attorneys, trusts, and anonymity issues. Buyers often require more inspections than with ordinary real estate (which are generally bought after a single inspection).

Luxury real estate magazines

Companies operating in the luxury real estate market often publish their own magazines online and in print in order to publicize their brands. Examples include Reside published by Sotheby's International Realty, Christie's Great Estates published by Christie's International Real Estate,[4] and Previews published by Coldwell Banker. The Robb Report is a lifestyle magazine featuring many products, including real estate, but is not a captive of a real estate agency. "PrimeResi" is a trade journal for the luxury real estate industry, published in London.

See also

References

  1. ↑ Brennan, Morgan (March 22, 2013). "The World's Most Expensive Cities For Luxury Real Estate". Forbes. Retrieved 2013-06-25.
  2. ↑ Goldsborough, Bob (June 20, 2013). "Elite Street: Former weather forecaster Mark Bishop sells Bourbonnais home". Chicago Tribune. Retrieved 2013-06-25.
  3. 1 2 "Global luxury real estate market showing ‘strong momentum’". Inman News. March 11, 2013. Retrieved 2013-06-25.
  4. ↑ Kime, Susan (June 4, 2013). "A New Trend in Passion Investment: Vineyards By Christie's International Real Estate". JustLuxe.com. Retrieved 2013-06-25.
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