The high-end real estate market for Chicago or, for that matter, for anywhere else, functions quite a bit differently than does the regular real estate market. This is why realtors tend to specialize in this market if they sell estate properties, luxury properties and so forth. Some of the things you learned about the real estate market in general do apply at the luxury level, but other aspects will be somewhat different.
Location is a major determining factor in the price of any real estate. You will find clusters of very expensive properties around Chicago in the most desirable areas. For example, the area around Michigan Avenue has some high-end real estate that appeals to those looking for luxury and convenience, Gold Coast Chicago Real Estate is also another area that has many high-end luxury homes.
Luxury locations tend to either be close to business districts, which is advantageous for people who plan on making their luxury purchase their permanent home or, in other cases, luxury properties may be located on the outskirts of the city of Chicago or in particularly historic neighborhoods. In the latter cases, the high-end price tag tends to be, at least somewhat, the result of the fact that the location is desirable because it provides some buffer from the hustle and bustle of the city at large.
Everyone understands how location plays into real estate prices. Where luxury real estate is concerned, however, there are other factors.
If you’re buying real estate at the working class or middle class levels, you’ll oftentimes find that a home comes with very little in it. Where luxury real estate is concerned, the interior design of the home is sometimes a major factor in the price tag. During the process of negotiating price, the buyer may want the seller to leave certain items in the home if they are particularly vital to the overall look of the property.
Whether or not this becomes a factor in your purchasing luxury estate will depend upon the property you’re looking at. For example, if there is antique furniture in a home that you really want to get your hands on, you may want to talk to your realtor about getting the seller to part with it as part of the sale.
Amenities and Luxuries
Many high-end properties are continually improved upon. This is a way that the seller can add value to the home so that they walk away with a better deal when they do decide to sell. Right now, smart homes are very trendy. These are homes that manage heating, cooling, lighting and other utilities from centralized control panels. This is a fairly common feature in luxury condominiums, though it is expanding to single-family homes, as well.
A good deal of luxury real estate is located in gated communities or buildings with doormen. In these communities, the amenities available tend to dictate the price to a certain extent. On-site security, for example, may be something that high profile and high net worth individuals are willing to pay extra for.
The complexity of luxury real estate is one of the major reasons that you need a realtor who understands this market to a great depth and who has a great deal of experience working in it.
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Christine Hancock, Broker Associate with Prudential Rubloff specializing in downtown Chicago Real Estate including The Gold Coast, South Loop, West Loop, Streeterville & Lincoln Park for over 10 years. Call/Email Me today at 312-296-9300, or visit my website at DowntownChicagoRealEstate.com