Real estate value refers to the amount that a property will likely sell for in a fair market. There are several factors affect home values, including:
- Supply and demand
Generally, home values tend to be higher in markets where there is low inventory and strong demand. Sellers often have the upper hand in a tight market, and homes get sold in less than a month.
When it comes to the high end of the market, however, there is often a surplus of luxury homes and a limited number of qualified buyers. Luxury listings also sit in the market for much longer than mid-range properties because upmarket homeowners are in no hurry to sell. In many cases, homeowners are willing to wait for years until the right offer comes along.
Low supply and high demand creates competition among buyers who enter bidding wars and make offers that are higher than the asking price in order to secure the home of their choice. Homes in Steamboat Springs, for instance, often receive multiple offers.
With higher inventory and fewer buyers, bidding wars aren’t as common in the luxury market. In Steamboat Springs, however, being a renowned ski resort generates a high level of interest in luxury real estate, especially when it comes to vacation homes. This means that even the most qualified buyers must act quickly when they find a home they want.
Home values depend of where the property lies. Homes close to the city center generally command higher prices, as do properties in prestigious neighborhoods. Often, however, top-tier buyers want an address that affords them peace and privacy.
Mid-range homes are priced according to comparable properties, or comps, in the market. The listing agent will look at recent sales of similar properties in the area when determining the price of the home.
Luxury homes, however, are beyond comparison. They often come with a unique combination of features, which means that the seller can’t rely on comps for pricing.
Other Factors Affecting Luxury Real Estate
Luxury homes come with a range of amenities that allow buyers to experience the kind of lifestyle they want, whether they are fitness buffs, outdoor enthusiasts, or avid skiers. This means that the home must have the right combination of features that will help them pursue their interests, as well as a location that brings them close to relevant attractions.
Routt County luxury homes command views of the Steamboat Ski Area, Flat Tops Mountains, the Elk River, and many other natural attractions. Colorado boasts one of the most unique and dramatic landscapes in the United States, and there’s no better place to experience it than Steamboat Spring and the surrounding towns.
Top-tier buyers will want unobstructed views of the scenery and, if possible, to have a view in every room. Oversized windows and outdoor spaces like patios and balconies make the most of the county’s valley setting.
Discerning buyers are also concerned with the intangible qualities of a home. Provenance, or the origin or history of a property, can add to its appeal. A fine example would be a home that was designed by a prominent architect, or one that was previously owned by an influential person.
For more information on real estate value, call me, Mike Stine, at (970) 879-7883 or send an email to mark(at)markstine(dotted)com.