Why Design is Critically Important in Carmel Luxury Real Estate
We have been keeping a close eye on the market here on the Monterey Peninsula. Since we have very little new construction, new builds get a great deal of attention. 2017-2019 brought a flurry of building/remodeling activity in Southwest Carmel, and we saw several beautiful new homes being developed. Some record prices per square foot were set, and it was fascinating to watch as 1600sqft homes reached the $3,000,000 mark and beyond. A couple of homes ended up reaching $2,000/foot, and they were absolutely immaculate. They chose contemporary finishes, beautiful light and bright colors, and an open layout with impressive master suites while still maintaining the classic Carmel cottage charm.
Big Discrepancies in Price
After the $3M benchmark was set, we saw several properties listed at or above $3M. We observed properties that did not follow the current design trends fall short of $3M – some of them significantly below. Two brand new 1600sqft homes in very comparable areas closed nearly a million dollars apart!
This brings two important points to those keeping up with the luxury market. First – pricing is key, and in order to generate interest and showings quickly, you have to nail the price from the beginning. The second is that design is of utmost importance to the discerning luxury buyer. The buyers are here, and they will spend the money, but they have to love the materials and finishes selected, and they have to love the layout. Otherwise, they will wait for something better to come on the market because they are in no hurry. When the right property comes along in a great location with a great design, they are prepared to move quickly and make a competitive offer.