For generations, we have seen people climb slowly to the top of the success ladder with sweat and tears, sometimes lining their pockets with cash as they go. Today, we see a shift of the high-income earners, who increasingly span a wider range of countries and ages. These individuals are self-starters and want lovely luxury items as the cherry on their success. The Luxury Portfolio, a summation of studies done by Dr. Jim Taylor and Chandler Mount of YouGov, states that affluent buyers have increased their spending from 2013 to 2014 by 12% on their primary residence, meaning this is a growing niche market to learn about. Let’s take a deeper look into the mind of the luxury buyer.
Sought-after home features
According to real estate news site inman.com, the features wanted in a luxury home are often seen as similar, despite the widespread origins of wealthy buyers. Location is important, with buyers seeking out high-end areas with retail and restaurants to match their luxurious style. The details of the home are also important, with buyers searching for things like custom walk-in closets, saunas, infinity pools, home theaters, and updated chef kitchens. These buyers know what they want and they intend to get it in their purchase. The same Luxury Portfolio also states that these buyers cut out the “flowery language” in their search and stay focused on their desired amenities.
A new generation
Interestingly enough, we are now seeing luxury real estate buyers at a younger age. These are the people who grew up with smart technology at their fingertips. They are well versed in the internet and higher end technologies, not only because they can afford it, but also because it’s what they’ve always known. As you find yourself interacting with the luxury buyer, be prepared to use mobile apps, interactive websites, videos, professional photography, and social media as your main tools.
Having the right Realtor is important
These high-end buyers are looking for a real estate agent to accompany them on the journey of their home purchase. Reputation and respect within the community go a long way for the real estate agent wanting to win over the luxury buyer. The Luxury Portfolio goes on to say that 87% of these buyers expect a real estate agent to protect them from risk during their transaction. When asked what makes an agent the most valuable, these affluent buyers had various answers, such as assisting to make the buying process enjoyable, showing interest in understanding the luxurious lifestyle, and being well equipped with knowledge and wise counsel throughout the process.
Understanding this growing group of prosperous buyers is valuable knowledge in today’s market. With some insight into lifestyle, technology, and locations, a rewarding transaction could be well within reach.
Sources: inman.com, Luxury Portfolio on media.mcguire.com, myfirstclasslife.com