What Makes a Home Luxury? These Things Boost the Value of Your Home

What Makes a Home Luxury? These Things Boost the Value of Your Home

Luxury is in the eye of the beholder, but there are a few things a lot of those beholders commonly appreciate. ESTATENVY details some of those with a little help from our real estate friends.

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  1. Price. Price alone does not boost the value of your home, as you need willing buyers to pay the price. But price is one of the most important translators of value that represents what defines a luxury home. Moreover, a luxury home in Manhattan will not be priced the same as a luxury home in Dallas. Each city has its own luxury price threshold based on many factors. Last year, Luxury Defined published a whitepaper on the topic and came to the conclusion that “the average starting price for a luxury home across all housing markets is $2 million, ranging from $750,000 in markets such as Durban in South Africa, to an astounding $8 million in Beverly Hills, California.”

  2. Location. According to Coldwell Banker Luxury Property Specialist Stacey Grossman, “Location is key. In Chicago, for example, Lincoln Park’s location is what has made it so special. It is close to the lake, parks, shopping, restaurants and all the city has to offer along with good school districts. The luxury market will continue to be about location.”

  3. Concierge service. Luxury homes aren’t all single family. Many are condos in very dense cities. Izabela Sloma of Jameson Sotheby’s International Real Estate says that “If we’re talking about the luxury real estate market for condos, buyers want concierge service.” Such service includes drive in elevators that lift the entire car and people inside onto their condo floor. Conversely, your building may have 24/7 valet service for residents. Built in housekeeping options, security management and personal errands are all part of the convenient lifestyle that an elevated condominium community can provide, and there is a market for residents willing to pay. Many condo buildings have pools, but having a cabana service and a full time server for drinks and snacks is not an everyday feature.

  4. Upgraded kitchen. At the upper echelons of luxury living, the residents may not use the kitchen much because most food is prepared by a third party. However, the kitchen is still considered part of the soul of the house, and everyone needs to eat. The holding place of life’s nourishment is in this room, and upgrading it will boost the value of your home. According to Grossman, classic finishes are the golden standard for luxury. Whatever your style exudes, making sure this area gets the attention it needs will add value and goes beyond standard.

  5. Cleanliness and maintenance. Cleanliness isn’t a product you buy for your home, although the makers of those new robots who go around and suck up dust and dirt might disagree! Luxury is being able to keep a clean, organized and well maintained home, even when you might be busy and overwhelmed. This upkeep will help boost the value of your home, both in current perception by your visitors and by the people who may buy your home in the future with greater confidence in its state of affairs. Having help tidying up, and knowing where things should go, is a luxury. Many homeowners have bi-weekly or monthly help deep cleaning their homes, and a step above this level is having a weekly cleaner. Another step up is having a daily cleaner and also someone who organizes or comes regularly to check for needed maintenance.

  6. Privacy. Homes that have privacy can have its value elevated by this singular feature. For luxury condos, having a view that doesn’t include shared views of your neighbor is a great value. To achieve this, it’s not enough that the view’s present state doesn’t include intrusion into one’s vantage point. It’s being located near a protected forest preserve or the ocean, where one has better reassurance that a new building project two years from now won’t interrupt one’s precious, and costly, privacy. In homes, having acreage can achieve the same effect, or also being surrounded by protected natural land. Conservation easements have become popular in recent years as tax advantaged opportunities that also bring some assurance that land won’t be developed anytime soon.