It can be difficult to define luxury; it means something different to everyone. However, once you find your dream home, it is luxury to you. Luxury real estate is a niche market and caters to a limited number of prospective buyers.
According to the 2014 National Association of Realtors Profile of Home Buyers and Sellers, only 10 percent of first-time and repeat homebuyers purchased a home with 3,501 square feet or more.
Nationally, the luxury market has recovered quite well, thanks to an influx of international buyers. In 2014, five countries accounted for 51 percent of all purchases by international buyers: China, Canada, Mexico, India and the United Kingdom.
The stock market can also play a key role in the sale of luxury homes. A volatile market can cause potential buyers to put a hold or delay on the purchase.
Luxury buyers are likely to begin their searches online, which is typical of all buyers today. However, sellers of luxury homes may decline Internet marketing because of privacy concerns. It is also not uncommon for groups of investors or family members to purchase a luxury home together and use it as a rental property or a vacation home.
Working with a qualified luxury home Realtor provides buyers the best opportunity to find the property of their dreams and assist them with negotiations, financing and inspection.
Our local market has a variety of luxury homes, from beachfront mansions to sprawling estates. Roughly 104 homes sold for more than $1 million in the first nine months of 2015 through the Hilton Head Multiple Listing Service. With the assortment of lifestyle choices and the renovations of many of the gated community’s amenities, our area emulates the quality of life desired by luxury home owners.
Jean Beck is the executive vice president of the Hilton Head Area Association of Realtors.