Everyone has a different opinion on what the word "luxury" represents in real estate. Agents are no different.
What our group considers to be a "luxury" listing has to do with the level of quality per square foot, and the functionality of the property, NOT anything to do with price.
For example, you can have a 600 square feet studio made of marble, travertine, concrete, Viking appliances, with vaulted ceilings, a stunning view - that's a very very expensive list of materials, of detail, and the setting lives up to the "luxurious" expectations.
On the flip side, what we see a lot of in our market are larger homes on the water or on acreage that are over 5,000 sf, finishes that are 20 years old and some deferred maintenance throughout the home. While this might have been luxury at the time it was built, it no longer qualifies as luxury in our book. With the right renovations, it can be there again in that category.