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How to Choose a Luxury Home in California

California is home to prestigious neighborhoods that house the most affluent personalities and professionals. Dubbed as “The Golden State,” it boasts a thriving luxury culture and attributes from lifestyle to business. From the magnificent Beverly Hills to Hollywood to Silicon Valley, living in California is the definition of the American Dream.

That said, California is one of the most alluring destinations for investing in luxury homes.


Luxury Home Highlights in California

California is one of the top destinations when it comes to glam and allure. Compared to other leading cities, you can reap huge incentives from the value of your money when you invest here. Each area in the state has its own charms and offers many appealing attributes for prospective buyers.

With great outdoor spaces, appealing weather, pristine oceans, and top establishment, you can enjoy a top-notch living in California. As such, luxury real estate in California continues to thrive with its high-end amenities and business opportunities.

Many people are interested in luxury homes but unsure of the features that differentiate them from standard homes. For the majority of buyers, location is the most important factor to consider when investing in luxury homes. This, along with security and innovative floor plans.

You can expect luxury real estate in California to have high-quality structure and premium materials from its pillars to the finish. Furthermore, you will find these homes situated in popular locations with large square footage. These are ideal for people who value lush living with high-end amenities along with security and privacy.

Features of Luxury Homes

Luxury homes differ from a standard residence in many crucial aspects, especially with regards to lifestyle. These are properties with vast land that can cater to private premises. It includes structures among others like:

  • Swimming pools
  • Home bars
  • Home gyms
  • Courts
  • Bowling alleys
  • Wine cellars

The majority of luxury real estate has an open floor plan that focuses on large open spaces. As such, it gets rid of various wall partitions that separate one room from another. These homes also highlight advanced technology and fully-automated features that of a smart home. With these, homeowners can enjoy the convenience of controlling different aspects of their home remotely.

Of course, luxury homes have smart security systems that ensure that anyone and anything inside is protected. It is one of the top reasons why luxury residences remain appealing for many individuals.

Architectural Styles of Luxury Homes

Architectural Styles of Luxury Homes

With bold and extravagant architecture, luxury housing properties stand out in the market with their lavish structure. That said, there are various architectural styles popular among luxury homes. It includes traditional style, European style, and Northwest style luxury properties.

Traditional Style

This architectural style has a focus on the familiarity and comfort of 18th and 19th-century European furnishing. It provides a gentle and sophisticated touch to the house with its embellishments. The main components of traditional style architecture are:

  • Gentle color scheme
  • Symmetry
  • Uniformity in structure
  • Detailed millwork throughout the entire house
  • Beautiful patterns and style accents

European Style

The main features of the European style are its intricate details that make up different styles and themes. Its characteristics can range from elegant mansions to ranch-style luxury homes. The main components of European style architecture are:

  • Tall ceiling
  • Complex roof designs
  • French doors
  • Premium textures on floors and surfaces
  • Open floor
  • Intricately-detailed exteriors, from the patio to pathways
  • Iron balconies

Northwest Style

The northwest architectural style is a mix of the international luxurious home style. It features minimalist designs for a modern look. Today, many prospective homeowners prefer this architectural style because of its contemporary appearance. The main components of Northwest-style architecture are:

  • Flat roof style
  • Minimal home decoration
  • Asymmetrical floor plans
  • Heavy use of glass for the majority of the house structure
  • Neutral color palettes

California’s Luxury Real Estate Market in the Present


The pandemic has slowed down the real estate action globally. However, California’s luxury real estate market is beginning to see a turnaround. In fact, luxury homes are beginning to outpace the affordable housing market in California. According to Forbes, there is a return in California’s luxury market’s multiple offers and bidding wars.

There is a soaring trend in the sales of high-end homes in California, with a 93% jump for $3 million+ dollar homes. Realtors have also seen a 20 to 25% jump on many luxury property sales from their original list price. This is due to the present trend of purchasing spacious luxury homes outside dense urban locations. It is supported by the low mortgage rates for capable buyers and investors.

With this surge, now is the hay time to purchase luxury homes in California. With that, let’s look at the prime luxury areas and the types of luxury properties in California:


The location is the most critical factor for buyers when purchasing a luxury real estate property. It influences the overall market value of the house along with its size and distinctive components.

Depending on the area, buyers can find luxury homes with the price starting at $1 million and up. However, the average cost would vary depending on the specific area it’s located. For instance, you can search through communities in San Diego for luxury properties worth $2 million. Meanwhile, the average price skyrockets in popular cities such as Los Angeles, with an average amount of $9 million.

Los Angeles Area

The median price of standard luxury homes in Los Angeles is around $9 million. The area typically has premium prices because of its thriving amenities. Buyers can find some of the top luxury properties in the Los Angeles area.

San Francisco Area

The average price of San Francisco luxury homes ranges from $2 million to $3.5 million. These homes usually have at least four bedrooms and bathrooms. Moreover, they have an average area of 924 to 1,026 sq/ft. There is a vast range of luxury homes to choose from that addresses different needs and preferences.

San Diego Area

Meanwhile, buyers can purchase a luxury home in San Diego starting at $1 million. These properties would have an area ranging from 1,177 to 6,540 sq/ft. What makes these properties distinct is the lavish furnishings and spacious areas. Prospective buyers can choose from various architectural styles of luxury homes in San Diego.

Thousand Oaks

Thousand Oaks offers great communities with a variety of luxury home styles. The cost of these properties starts at $900,000 up to several million dollars.


Malibu is popular for its beach city and magnificent beachfront. Because of these qualities and high-end amenities, it’s no wonder why the area offers some of the most expensive luxury homes. The cost of a luxury property in Malibu can go as high as a hundred million, depending on its attributes.

Types of Luxury Properties in California

Beautiful modern house

The types of luxury properties in California vary on the location and architectural styles. With so much variety, it’s a must to learn their differences to know which type suits your needs best.

Beachfront and Waterfront

It’s a known fact that California offers a plethora of beautiful beaches with extravagant views. That’s why there are many luxury listings for beach houses in the area. This type of property yields an outstanding return on investment, especially during vacation peaks. Many people invest in homes near beachfront and waterfronts to rent them out during peak months. It’s because of its great amenity spots for people on vacation.


Luxury condominiums in California go beyond the amenities of standard condos. It goes for both the additional features of the property as well as the access to community amenities. Owning a unit in a condominium is a status symbol that shows off a person’s class. As such, it is an emblem of a glamorous and sumptuous life. Condominiums are best for both individuals and families looking for a home to live in.

Gated Community

Properties in gated communities are typically spacious lands with huge houses. The top quality of these types of properties that make them appealing for buyers is their guaranteed security. Moreover, an exclusive community like this features the best nearby amenities and is excellently maintained. The homeowners’ association oversees the developments and maintenance of the common spaces of a gated community.

Residential Home

Luxury residential homes are ideal for individuals who want the proximity and access to luxury amenities in the city. These properties have smart locations that add value to their market price. These homes often have custom architectures tailored to the owner’s preferences, along with an exclusive outdoor space.

New Construction

While there are a lot of luxury homes with history, there are also newly-constructed luxury homes with modern features. These properties cater to the contemporary taste with their minimal design and neutral colors. It also puts focus on automation and smart technology to improve household efficiency. With state-of-the-art engineering, newly-constructed luxury homes and communities create the dream homes moving forward.

Steps in Purchasing a Luxury Property in California

Steps in Purchasing a Luxury Property in California

Investing in luxury homes is one of the best housing and real estate decisions you could ever make. With a good value, excellent features, and the right location, homeowners can reap a high return on investment from these properties. It especially holds in an abundant state like California. Now’s the hay time to make a move in purchasing a luxury property in California.

But before that, here are the steps you need to take when you purchase luxury properties:

1.   Determine Your Motivations for Investing

Are you investing to stay in the long-term, to rent, or to sell? Prospective buyers must clearly identify the reason why they’re purchasing a luxury home. It will let them choose a property that can address their needs. Otherwise, they might make a costly mistake that’s difficult to manage later on.

The key is to invest time in researching and having guidance from an experienced realtor. By doing so, they can narrow down their choices of suiting luxury homes. It’s vital to be objective in making the decision and to consider all options. Homeowners need to analyze the investment, from the risks, return, liquidity, price movements, etc.

Here are some crucial questions you need to ask yourself to determine your motivations for investing:

  • Does it fit within my budget scope?
  • How would I use the home?
  • Does the property need major renovations?
  • How does the price compare with the average market value in the area?

2.   Assess Your Mortgage Options

Different investment options suit different homeowner situations. Choosing the most appropriate one for your mortgage involves numerous factors. For most types of housing loans, it would include looking at your income, asset, and credit history. Lenders need to assess the credit-worthiness of the borrower to ensure that they have the ability to pay.

Here are some of the things homeowners must consider in assessing mortgage options:

  • Type of rate
  • Down payment amount
  • Number of years to pay
  • Insurance
  • Eligibility for a government-guaranteed loan

3.   Secure Your Financing

To secure the financing, the best course of action is to improve the credit score. Lenders must see that the borrower is debt-free and pays bills on time. These things will affect their ability to qualify for a mortgage.

Upon securing the financing, the next step is to get a pre-approval for the loan from the bank. Since luxury homes fall under the high-end market, this financial documentation is very important. Moreover, many realtors would require prospective buyers to show a pre-approval letter to guarantee that they’re capable of purchasing a property.

4.   Work with the Right Team for the Job

Note that not all realtors operate in the same markets. Each realtor has a market focus that they’re specialized in. What you want to find then is a real estate agent with a specialization in luxury homes. Because they have exclusive knowledge as experts in the field, they have apt knowledge about the best listing and value appraisals.

Buyers will have a more accurate evaluation, especially for private luxury home listings. Moreover, these experts are familiar with the luxury home areas and market insights that you’re interested in.

Another important figure to take note of is specialized home inspectors. Because luxury homes have high-end and specialized features, it’s vital to hire a home inspector that’s aware of all these. It includes the electrical panels, irrigation systems, swimming pools, and other high-technology features.

Conventional home inspectors would also not be apt for the job of covering luxury home structures like outdoor entertainment and guest homes. As such, before hiring a home inspector, it’s crucial to double-check their credentials and acquire the right documents.

5.   Find the Right Property in the Market

Buyers can search photos in online listings to identify its feature highlights. However, this doesn’t compare to the actual experience of touring the property. Pictures don’t give an extensive insight into the nooks and crannies in both the interior and exterior parts of the house.

Thus, it’s critical to check the location of the property yourself along with the nearby amenities. It will allow you to see if the property ticks all the items in the motivation list in the first step. If you’re participating in a virtual tour, it’s important to ask the right questions and communicate well with the realtor.

6.   Run the Numbers on the Property

Running the numbers on the property determines the value of the home for the buyer personally and to the market. Here are some things to note:

  • Price
  • Potential resale value
  • Cost of living
  • Accessibility to amenities
  • Age of the community
  • Developments in the area

7.   Make an Offer and Close the Deal

Finally, make an offer and close the deal. Note that there is room for negotiation when it comes to luxury and high-end properties. For instance, when no work has been done on the property, there is more opportunity to lower its price. Meanwhile, if it has been remodeled, it would be reasonable to spend more on the property.

Having a reliable real estate agent will make this step easier for prospective luxury home buyers. They will be the ones responsible for researching comparable properties, average market value, and getting the best closing price. They will guide the buyer throughout the way until the time to make an offer.

Choose the Luxury Home That’s Right for You

Choosing the luxury home that’s a perfect fit for you is no easy task. Fret not because, at K.Freeman Real Estate Group, we’re determined to guide you on acquiring your first luxury property. Feel free to give us a call at 424.253.4501 or send us an email at admin(at)kikifreeman(dotted)com.