What is a Luxury Home?
Residential real estate can be broken down into two categories, luxury and everything else. For most, luxury properties are something viewed as unobtainable, yet highly desirable. For some, luxury properties are an absolute way of life and finding a luxury property specialist Olympia is an absolute necessity. Luxury homes stand out in the marketplace. Most often they have a unique or distinct feature that sets them apart in their markets.
Luxury properties are defined as the top 5-10% of a specific real estate market. In the Pacific Northwest, we have seen luxury homes priced upwards of 29 million dollars in the Seattle area, but how does the definition of luxury change when you move out of the Seattle area. What defines a luxury home in Olympia, Washington for instance?
The total home sales reported by the Northwest Multiple Listing Service from March 2013 to February 2014 in Thurston County was 3398 sales and only 150 of those sales were over $500,000. There were 28 sales in the $600-700K range and only 2 sales over 1 million dollars. If you consider the top 5-10% of the real estate market in Thurston County, than a luxury home in Thurston County is any home valued at $500,000 and above.
What can you expect to get for over $500,000 in Thurston County?
Cost is based on amenities and condition, but mostly it is based on location. Homes that are priced in the luxury category, are going to likely have larger lots, spectacular views, waterfront, more square footage and high end finishes overall. Spacious floor plans with things like wine cellars, chef’s kitchens, high-end bathrooms, extra garage space and well-manicured grounds are all commonly found in luxury properties around the Olympia area.
How Can I Purchase a Luxury Home in Thurston County or Find a Luxury Property Specialist Olympia?
Luxury homes are unique when it comes to buying and selling them. Because of the unique characteristics of a property, a luxury property specialist will know how to best market and find the right buyer for a property. Many luxury properties are purchased using cash transactions or with large down payments, although in the Olympia area many luxury homes are still financed with jumbo loans. Almost all luxury homes in the area are listed through real estate brokerages like Williams Stoffle Real Estate and marketed through the Northwest Multiple Listing Service to cooperating brokers. If you want to find a luxury property, you can search online based on criteria that you set, but working with a luxury property specialist Olympia area will ensure that you don’t waste time or money as they will know the properties and be able to match your lifestyle and desires with the right house.
The market tends to be quite different for luxury properties than it is for the general real estate market. The reason is that there is a much smaller sub-set of buyers who are qualified and interested in purchasing luxury properties. Additionally when a buyer is seeking a luxury property, it is not so much about finding a 3 bedroom 2 bath home that checks off the list of requirements like in a regular market, but instead luxury property buyers are looking to find the right blend of unique attributes that matches their lifestyle. Because luxury properties tend to be unique in their own right, they may not appeal to all buyers and finding that one person that is the right fit may take longer. The bottom line is that in general, as a rule luxury properties do take longer than the regular market to sell. If homes in the regular price ranged market are being sold in a few weeks, it is not an indication that a luxury home will sell just as fast. It may take a few months or more or less to sell a luxury property in the same market.
Whether buying or selling luxury properties, it is advisable to find and work with a Luxury Property Specialist Olympia to guide you through positioning and negotiating the sale in the best possible way for the current market.