In a recent survey of Luxury Homebuyers, some interesting statistics were discovered. Here’s a good look into what luxury homebuyers rely on from their agent, and look for in a home.
The survey shows that, while technology is evolving, the role of the real estate agent is changing.. As more information becomes readily available, savvy real estate agents are making a shift from provider of the information to expert advisor. This survey shows that the need for a personal connection is still alive and well in the luxury market, where 96% of Luxury Homebuyers are relying on their agent more than ever before. Luxury consumers understand the importance of the human element and appreciate expert advice, from a trusted advisor.
What are Luxury Homebuyers looking for in a real estate agent?
- 65%… Insight into neighborhood lifestyle.
- 64%… Advanced listing notices.
- 55%… Advice on housing trends.
- 53%… Support on a personal level throughout the buying process.
Luxury hombuyers have a renewed sense of confidence in the real estate market. Investing in multiple properties is becoming a new trend.
- 53%… Prefer owning multiple “lifestyle” homes.
- 58%… already own multiple homes to support their lifestyle activities.
The survey also shows that bigger isn’t always better for the luxury homebuyers.
- 68%… Would rather have as many upgrades as they can afford in their home, rather than more square footage.
- 94%… would be willing to give up 1,000 sq ft of living space in their next home in exchange for a “lifestyle” amenity they desire.
Such “lifestyle amenities” include;
- 54%… Living in a better neighborhood.
- 51%… Living in a house with “character”.
- 44%… More land.
- 39%… Access to dining and entertainment.
- 38%…A shorter commute.
66% of Luxury homebuyers surveyed said that they’d prefer a “smart” home rather than a “green” home, and 87% would not even consider living in a home that isn’t “tech -friendly”.
Topping the list of “must-haves” that are essential to qualifying as a “luxury home” are actually features that are outside of the home;
- 53%… A garden oasis.
- 50%… Outdoor fireplace or fire pit.
- 47%… A guest house separate from the main home.
This study offers an interesting glimpse into the mind of the luxury homebuyer, and coincidentally, in many ways, mirrors the homebuying ideals of the Gen Y – or Millennial homebuyer.
However, Millennials have grown up knowing how to access readily available information and many tend to opt for the more DIY approach. Whereas, the luxury homebuyer tends to view a Realtor in the same professional capacity as that of a doctor, lawyer, or financial adviser. Of course, many Millennials are also luxury homebuyers, which adds an interesting twist. I think the reality here is that those with money more often see the value and return on investment of the professional advice of a real estate agent.
The on-line survey was conducted by Wakefield Research for Better Homes and Gardens Real Estate. 500 luxury home buyers were surveyed between May 20 and June 4, 2013.
Reference; Market Wired via COMTEX . Study released on Sept 10, 2013.