Buyers and sellers in the luxury market are typically well educated, informed, well versed in available investments/strategies, and knowledgeable about the real estate market. They most likely are attuned to current construction costs, the latest and greatest home technology, and the amenities that are in demand. Luxury market participants are typically the trendsetters in the real estate market.

A luxury home encompasses more than the home’s design, size, and features, it is a lifestyle. In Florida, a luxury home buyer may seek a location on the ocean or a golf course, in a fashionable gated community, or in a city center. Proximity to high-end shopping, fine dining restaurants, cultural facilities, high-rated private schools, sport clubs, and other luxury homes are all considerations. Market participants desire security, privacy, prestige, and customization. A luxury home could have architectural significance, a storied history, or a prestigious address. These characteristics are all factors that influence the luxury home market.

The complexities of the luxury home market require the appraiser to have specific techniques for obtaining information from others and the skill set to work effectively with luxury home buyers, sellers, and real estate professionals. An experienced appraiser understands this and will be able to identify the following:

• Recognize the market and marketing distinctions of luxury homes.
• Recognize factors that influence the luxury home market, and the property being appraised.
• Recognize the most important aspects of conducting a professional and methodical inspection and reporting the property characteristics in the appraisal report.
• Employ their knowledge and experience and draw from their network of Real Estate professionals.
• Recognize the importance of adequately explaining and supporting the rationale of data selection and the weighted analysis of comparable properties.
• Employ different accepted techniques to support adjustments and recognize when an adjustment seems unreasonable.
• Employ alternative methods and logic when comparing distinctive custom properties.
• Develop and report a value supported by reconciled research and data analysis.

Remember, what the appraiser really is doing is proving what a typical purchaser in the market is looking for, what they expect and what the typical purchaser is willing to pay for the property.

In addition to verification of value and financing requirements, we provide luxury property appraisals for estate, probate, foreclosure, divorce, mediation, and other legal matters. Invest in our experience, knowledge, and network of real estate professionals. We encourage you to contact us for a free consultation.

Stephen D Ihrig, II, SRA