Here’s How to Tell What that Luxury Home is Really Worth

If you are the kind of buyer who values detailed woodwork or a six-burner stove, you are looking for more than square footage. You are searching for a home that speaks to you and reflects your style. Like many of us, you want a home that evokes a sense of pleasure every time you walk in. Feeling proud of your home and sharing it with others is a feeling like no other. However, this kind of luxurious, high-quality home is challenging to place a valuation on. Just how much should you be paying for that luxury basketball court, movie theater, or pool? Keep reading for help determining what the luxury house of your dreams is truly worth!

Whether the home of your dreams is located in Beverly Hills or Palm Springs will make a big impact on the valuation. Some areas are more sought out due to their privacy, proximity to big cities, or walkability. Depending on what area you are looking in, you will find the prices to reflect not only the luxury home but the neighborhood too. A Beverly Hills or Pacific Palisades home will be valued higher due to its location. Both neighborhoods are highly sought-after, right outside the city of Los Angeles, and serene. Other factors that are extremely important in the luxury home market include: having a beautiful view, being secluded, and being close to the ocean. Privacy is arguably one of the most important things when valuing a luxury home. When browsing for luxury homes, just know that the location will have a huge impact on the sale price.

It is no surprise that square footage will be a huge factor in the value of a luxury home. Although this is a given for any home, each new addition to a luxury house, including rooms and outdoor space, will be sought after. Most buyers in the luxury home market are looking for their house to have some versatility, including outdoor space where they can host a variety of different people. Whether you are someone who is an entertainer or an executive, you want your home to serve its purpose for the kind of social situations you are used to. Square footage in all the right locations will boost the asking price of a home quickly. Each bedroom or additional office space can make a world of difference to a luxury buyer.

Luxury and elegance typically go hand in hand. Luxury home buyers place a huge emphasis on fine materials and perfect craftsmanship. It is easy to tell a basic home and a luxury home apart, with one of those reasons being the excellence in quality of all materials. Not only that, but antiques and special features will make a home stand out in a certain way. The hottest luxury home designs include high-quality materials and a creative designer to put them together effortlessly. Showing off a home or a car is no different, and let’s be real– luxury homeowners want to show off their purchase amongst the crowd.

Luxury home buyers, especially younger buyers, are looking for a home that is decked out with smart features. If you are eyeing Santa Monica houses, and you stumble upon one that has smart features, just know that it has the potential to sell higher. Sound systems are great, but serious home buyers are looking for smart thermostats, security cameras, door locks, and anything else that offers better peace of mind for the owner. With more value embedded in luxury houses, owners will prioritize the safety of their homes. New technology helps make that easier and allows buyers to feel protected. Even better, if the smart technology functions together in one ecosystem, the home will be red hot!

The lot size is the backbone of the property. Luxury real estate lovers come from many different backgrounds, including investors or families. One thing they can all agree on is that lot size matters. Some investors have intentions of upgrading the home to continue to add value and increase the value. With a big lot size, they can make the necessary adjustments to do so. If the home sits at the edge of the property, buyers can feel stuck in loving the home because they may not be able to make the improvements they dreamed about in the future.

Homes that appear distinctive hold higher merit than the average house in the suburbs. Therefore, luxury means something different to everyone. High-end homes come in all different shapes and styles. More often than not, it is the unique designs of the original homeowner or architect that help define the home as a luxury. Most buyers want to stand out and feel unique and do everything to ensure that it is reflected in their house. The more architectural style, the better in the luxury home market.

This one may seem like a no-brainer, but if the property is placed on the market at a higher price, then it is probably for a reason. Buyers looking to snag a luxury property will pay anywhere from a couple of million dollars to over $100 million. Typically these homes have a story to tell, whether it is their architecture, uniqueness, or a previous celebrity's house. Regardless, the higher the price, the more glamorous you can expect.

If you are questioning whether a home is in the top percentage of the market, consider working with an agent who has experience in the prestigious home market. Claire O'Connor is the go-to person for assessing high-end properties and can help you decipher whether a luxury home purchase is worthy of the price tag. She can get a feel for what time of buyer you are and create a strategy that will help you land the home of your dreams. Get in touch today.

_{*Header photo courtesy of Claire O'Connor}