Say a word a thousand times and its meaning melts away. Homebuyers in search of high-end properties have likely seen homes tagged as “luxury” in too many listings and in so many real estate shows that the word no longer denotes novelty or opulence. This is not an unfounded observation, and real estate agents do agree the word is overused.
Today, the term luxury has applied to a wide range of properties, from fairly furnished homes with a decent kitchen and new appliances to the exuberant mansions of the planet’s wealthiest people. How homebuyers account for what counts as luxury in the area can help them communicate their expectations better.
Throwing around the term too much can further dilute its significance, but it helps to know the bounds of what constitutes luxury within the market’s context. This can go a long way in a homebuyer’s search for a home, whether or not it falls within the criteria. After all, isn’t every home a luxury?
Moneywise, the boundaries can be fluid
Money is undeniably the main determinant of the tag, but there’s no fixed percentile or number. Luxury is relative and varies across different markets. A top property elsewhere might not have the same attributes as a West Palm Beach luxury home. Listing sites like Redfin set this percentage to the top 5% based on the region’s market value. Others list homes on their luxury collection if they cost twice the mean sales price of local properties.
For those who prefer figures over percentages, the managing editor of the real estate technology platform, HomeLight, defines the boundaries of typical luxury property sales prices: $2 million to $40 million.
A more traditional and tangible margin is seven figures for a single-family home. The Institute for Luxury Home Marketing, a research group for high-end residential property real estate agents, sets their threshold at $925,000. According to the Institute’s February 2024 market report, the median sales price for high-end homes reached $1.3 million in January 2024. A similar 2023 analysis done by Redfin found a $1.17 million median national sales price.
That said, determining the local market should remain the top priority for prospective homebuyers. Thresholds can vary dramatically even per zip code. For instance, homes worth upwards of $1 million on the historical Philadelphia Main Line are considered luxe, but in surrounding cities, this threshold can dip to as low as $700,000.
Naturally, the high prices associated with luxury homes reflect a home’s features and characteristics, but which ones? While the monetary thresholds depend on the market, what is luxurious depends on a person’s wants. For some, a luxury home is full of modern appliances and facilities. Others prioritize prime location over amenities. The unconventional may value the uniqueness or novelty of a product. For example, properties designed by famous architects – dubbed “starchitects” – make a home or building distinct from others in the market. Property agents, however, can agree on consensus features of in-demand luxury homes.
Characteristics of a luxury property
- Homes close to lifestyle interests such as beaches, golf courses, and ski resorts can be considered high-end. Other locations deemed desirable include their proximity to entertainment and major transportation hubs like airports. For instance, Palm Beach Gardens luxury homes are within 30 minutes from West Palm Beach International Airport, a surfeit of golf courses and nature preserves, and the endless Florida coastline.
- Square footage is another common denominator among luxury properties. Demand for mansions has rebounded since its pre-pandemic decline as high-end buyers are seeking outdoor spaces to unwind when they feel cooped up. In a survey, 37.5% of luxury specialists believe a spacious yard is the most sought-after residential amenity. An indirect effect of this trend is that luxury buyers have gravitated away from the suburbs and into less crowded areas: the exurbs. An additional benefit of more square footage is the option to build out spaces for home offices, gyms, walk-in closets, and other areas that befit the buyer’s lifestyle.
- Demand for smart home features is also on the rise. Having available technology that automates the regulation of home temperature, lights, and security systems has raised the bar for comfort and thus, the standards of luxury living.
- In West Palm Beach, The Club at Ibis sets the standard in luxury homes. Homebuyers must become members of the award-winning country club before they can gain access to the gated community’s 31 distinct neighborhoods. Each of these enclaves offer choice lots within the fairways, along with homes boasting pools, extended patios, and priceless views of the greens.
If you plan to live a pampered lifestyle in an amenity-filled home in West Palm Beach, FL, check out your options at The Club at Ibis with the help of a top-tier real estate brokerage. The Telchin Group LLC specializes in buying and selling properties in this exclusive country club and golf community.
Call The Telchin Group at 561.301.0249 or contact us here to discover an array of ultimate dream homes in West Palm Beach.