Chicago Relocation
 

Price V. Luxury

December 4, 2009

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When considering  luxury real estate, what is the relationship between price and value? There is one, to be sure. There is value in space, insulation, quality of materials, etc. but we have to weigh that somewhat between the other extreme – the “beauty is in the eye of the beholder” (and that beholder may be the buyer, the marketplace, or a combo). 

Think about cars – the ultimate depreciating asset. How much value does it lose when you drive it off the lot? Is a beat-up Jag that sells for the same as a new Toyota Corolla an apples to apples value? Is a 2000 SF former luxury home in the suburbs of Detroit that sells for less than studio condo in Chicago any better or worse of a value? 

Unless you’re talking about investment property (where you can objectively quantify short term value), value in luxury real estate is a real intangible. And that’s OK. Intangibles like neighborhood atmosphere and lifestyle are real when it comes to real estate. So choose your home wisely. 

It reminds me of what an old colleague used to say – You can’t get cancer too cheap.

 

 

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