Definition
The characteristics that define Luxury real estate differ among countries. However, 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. Thus, a 750-square-foot (70 m2) waterfront home with less than one acre of property might be worth more than a 10,000-square-foot (930 m2) mansion with ten acres of property.
In the previous example, the former would be called a "luxury property", whereas the latter would be called a "luxury home". Both properties, however, owing to their high value, would be classified as "luxury real estate".
Luxury real estate in any particular region is generally defined as property worth more than a certain lower limit; for instance, homes worth more than $1 million in the United States are generally classified as Luxury real estate. 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. They must advertise to a national audience to attract non-local buyers, whereas ordinary real estate only generally requires exposure in local media. There are also greater legal responsibilities for the luxury estate agent, which often involve attornies, 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, meant to publicize their brands. One such example is Panache Magazine, published in New York by luxury real estate broker Panache Privée.
