The adjectives “High-End” and “Luxury” are frequently interchangeable in real estate descriptions. But, are they one and the same?
My real estate business centers squarely on the luxury, high-end, upscale market. My work involves touring, listing, marketing, comparing, and selling upper-end homes in the Gallatin Valley. After nearly 8 years of concentrating in this niche market, I feel rather strongly that there is a difference in the connotation between “high-end” and “luxury” when discussing property. Please keep in mind this relates to real estate, and while it may apply to other items being sold or purchased, my focus is property.
High-end is a quantitative phrase that firmly places a property at the priciest end of the cost spectrum. In the Gallatin Valley, a home that is priced over $750,000 is considered “high-end.” It is implied that the expensive pricing is due to the appeal of the home to discerning clients. Pricing is based primarily on the current market, location, materials, workmanship, a sense it is a good investment, acreage and size of the home. American culture, over the past 3 to 4 decades, has brought about marketing and advertising campaigns that have branded certain products in such a way that they are able to garner a far higher price than their competitors simply from name recognition. Designer jeans are a case in point. In real estate, certain neighborhoods, architects, builders, or building materials contribute to a home being able to be marketed at higher asking prices than the property’s attributes may warrant. At the same time, choice homes cost more from the ground up to create.
There is a wide range in all material costs that add up, and it often times requires a buyer to be sophisticated in understanding that Brazilian hardwood is vastly more expensive and desirable than rough-sawn oak.
Luxury, on the other hand, is a state of mind brought about by ultimate comfort suiting an individual’s personal sensibility. What is considered luxurious to one person is not necessarily the ultimate to another. However, luxury does tend to include certain givens such as every component being thought out and addressed so as to contribute to a rich, comfortable, sumptuous lifestyle. Luxury is hard to obtain, as it demands attention to detail, a willingness to not cut corners and to use only the finest materials and workmanship that enhance the over-all ambiance and style of what is being designed and built. A luxurious log cabin will be vastly different in feel, use of space, materials, and setting than a luxurious cutting-edge contemporary home, but they will be united in their integrity and goal of satisfying the emotional well being of a person seeking something basically non-essential, but worth every penny as it is conducive to comfort and pleasure.
Both “high-end” and “luxury” have a connotation of being expensive. I have found that oftentimes what at first appears to be expensive is—in the end—a “deal” or “bargain” as the property is sheer perfection to the new owner, satisfying all their dreams and expectations. They are not spending thousands of dollars to remodel, and, more importantly, they are joyously inhabiting the space. I use both terms, “High-end” and “Luxury” on a regular basis as they do have commonality and are excepted for real estate marketing. However, it is good for you, as a customer, to understand the slight differences between the words as high-end may lack the comforts that qualify something as luxurious, and luxury does not necessarily mean big and expensive.
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