What a difference a year makes. In the Las Vegas market, “2018 proved to be the best year for luxury home sales in a decade.” By early November, however, prices had started slipping.
In Manhattan, the “average resale apartment price fell 5% from a year ago to $1,641,989” according to Brown Stevens Second Quarter 2019 report.
The luxury market is correcting, with sales stagnating and inventory rising – the perfect market for affluent homebuyers.
This pool of affluent homebuyers consists primarily of baby boomers, age 55 to 73 in 2019. The cohort boasts 1,083 billionaires, “with a net worth of slightly more than $4 trillion,” according to research from Christie’s International Real Estate.
The beauty of this real estate niche is that the typical buyer is about the same age as the typical real estate agent, so getting to know them is a snap.
It’s the “affluent” part of the equation that may be a bit more of a challenge for agents who don’t travel in high-end circles.
Affluent homebuyers tend to be more specific about what they want and need and they are far more willing to defer gratification when it comes to finding their ideal home.
Like buyers in the lower price ranges, however, these needs and wants change, although not quite as frequently, so it’s important to keep an eye on trends.
It’s neither easy nor wise to try to lump a bunch of individuals together under any type of category, including luxury home buyers and sellers.
International buyers’ needs and wants differ significantly from those of the domestic buyer. Then, there are the niches within the domestic market, such as the small but growing group of young HENRYs (High-Earners-Not-Rich-Yet).
So, what are the common hot buttons of affluent homebuyers? We did the research, so you don’t have to.
Privacy is at the top of the wish list
Domestic luxury homebuyers seem of the same mind in their demands for privacy, according to Luxury Portfolio International’s study of the top 10 percent (by income) of real estate consumers.
It’s even more important to those seeking homes in land-starved areas. Consider the case of Facebook’s Mark Zuckerberg. He purchased his neighbors’ homes (four of them) to keep out prying eyes.
Then, when he purchased a 600-acre estate in Hawai’i he built what our president would consider a “big, beautiful wall” (6 feet in height, nearly 1 mile in length) surrounding it, blocking an ocean view the locals had enjoyed since the 1850s.
Affluent homebuyers want tech-friendly homes
Considering the primary age group of the luxury homebuyer, it seems a bit odd that they’re clamoring for homes with technology built in. Yet, nearly 90 percent of luxury homebuyers surveyed said they wouldn’t consider a home that lacks tech features.
The most in-demand features have to do with security and they want them app-driven. Find a home with that and climate control that the client can put on auto pilot and you’ll have a sale.
Popular tech brands to be on the lookout for when showing high-end property are Ecobee and Nest.
Yes, they want pools, but smaller ones
High-end homebuyers are still lusting after an outdoor area that can be used for entertaining. Outdoor kitchens are in demand as are rock ovens, firepits and sumptuous furniture.
Those features leave little room for the standard swimming pool but that’s ok. These buyers are looking for scaled-down versions, according to a Redfin survey.
The lux buyer’s ideal real estate agent
Two qualities top the list of those surveyed by Luxury Portfolio International.
First, show them you are trustworthy. Every bit of branding you do should ooze trustworthiness. Use those testimonials for all their worth because, with this group, they’re worth their weight in gold.
We talk more about how to ensure your testimonials are effective, here.
Affluent homebuyers also want you to understand “details that distinguish the best,” according to the aforementioned study.
Again, following trends among the wealthy will help you get a handle on what they consider “the best.”
As mentioned earlier, trends among this group don’t change as frequently as they do for the masses, so don’t get complacent about keeping up with them.
An example of this is appliances. The days of this gang longing for Miele, Sub/Zero/Wolf or Viking appliances are gone. Today, Bertazzoni tops the list.
The best way to learn how to serve this buying pool is to immerse yourself in luxury magazines, join luxury real estate social media groups and stalk successful agents online.
We offer more luxury real estate tips for you here on Easy Agent Pro.
Ready to target luxury buyers (or sellers)? Here’s how you do it: