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7/1/2010
In my business, the term “luxury home” is overused to the point that I almost need to find a new term for the homes that truly deserve such a label. Like the word “gourmet” in the restaurant world, the term “luxury” is extremely subjective. What is luxurious to one person may seem very standard to another. As a real estate professional who has toured, listed and sold thousands of homes in the Boulder real estate market, I feel I have developed a keen sense of what does and does not constitute a luxury home in and around Boulder.
First, the DOES NOT list:
Luxury homes are not defined by list price. In theory, a seller can ask anything they want for their home. This does not mean the home is worth that price or that a buyer will pay that price. And it doesn’t mean the home has earned a luxury moniker. It may simply mean the seller has attached an unrealistic value to the home based on his/her personal and sentimental attachment. Or perhaps the home is worth a high price simply because of how the property is zoned and the potential for what it could be rather than what it is in its current state. In either case, price doesn’t automatically equate to luxury.
Luxury homes are not defined by size. This is especially true in a market like Boulder where growth is extremely regulated and building restrictions have limited the size of new homes. Square footage has little to do with a home’s luxury status. I have sold luxury homes in Boulder’s Mapleton district that were less than 2,000 square feet. It’s what is contained within and located around the home that really matters.
So what DOES define luxury housing? From a research standpoint, “The Institute of Luxury Home Marketing defines the luxury real estate market as “the top of the market,” and uses data collected from the top ten zip codes in a given metro area with a median price in excess of $500,000 as the bench mark for their Luxury Market Report.” (blog.luxuryproperty.com). While this quantitative approach is necessary to compare luxury housing across various markets, luxury is ultimately about lifestyle. So what lifestyle factors contribute to luxury housing in Boulder?
Location. There’s a good reason why 80302 and 80304 are the hottest residential zip codes in Boulder. These zip codes contain the area’s most desired shopping, eating, recreation and night life. This includes Pearl Street Mall, many of Boulder’s most popular trailheads, the lauded St. Julien Hotel and Spa, and other hot spots that are perennial “Best of Boulder” winners. Boulder’s main hospital, Boulder Valley Community, is in the heart of 80304, too. In a pedestrian- and bike-friendly town like Boulder, people revel in walking or cycling wherever and whenever possible. Being within walking distance to the city’s main attractions is part of the Boulder lifestyle that drives prices and attracts the luxury buyers who can afford them.
Views. A picture is worth a thousand words. A Flatirons view is worth a whole lot more. For properties in the Boulder Valley, Boulder’s picture-perfect backdrop offers a dramatic view that, when unobstructed, can elevate a home’s status and its price. Homes that are actually built into Boulder’s foothills have a different vantage point: Looking down on the valley is a spectacular and rare aerial view that also comes at a premium and helps contribute to a home’s luxury appeal.
Thoughtful design. Luxury homes are typically well designed to take optimal advantage of their most alluring features. For example, if a home offers a stellar view of the Flatirons, you shouldn’t have to gather in the guest room to see it. Rather, the home’s integral gathering areas should be designed around the view corridor. If a home’s greatest asset is a lush exterior with a section of creek running through it, the home’s outdoor living areas should capture the essence of such rare and special features.
Quality. There is no substitute for quality. Prime location and architectural appeal can attract prospects, but quality craftsmanship in all aspects of construction and finishes, inside and out, is a must for turning them into luxury buyers. Cutting corners on quality will send deep-pocketed buyers running in the other direction.
Details. Buyers who can afford a luxury home expect something different, something unique, something exclusive to that residence. Rare and exotic surface materials. Reclaimed woods. An antique fireplace mantle. A stair rail or light fixture crafted by a local artisan. These are examples of little details that collectively make a big difference when buyers assign levels of luxury to the homes they consider in the search process.
Amenities. Luxury homes do more than offer a comfortable place to gather, eat and sleep. They offer experiences: personal gyms, steam rooms, home theaters, entertainment rooms with wet bars, wine cellars with tasting rooms, outdoor kitchens, separate guest or nanny’s quarters, equestrian facilities … these types of amenities add to the overall experience of the property in ways that standard homes do not.
This is merely my local perspective based on more than 20 years of selling true luxury homes in Boulder, Niwot and in the high-end pockets of Denver. Every area has its own factors that drive demand and, therefore, price. These factors are what define an area’s luxury market. Get a glimpse of what defines luxury homes in other cities around the world by reading “Luxury Real Estate Markets around the World.”
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