RISMedia—In largest luxury owner survey ever, Better Homes and Gardens Real Estate study reveals multiple homes and high-tech amenities are the new norm for affluent homeowners
Existing home sales have been rising along with mortgage rates, and cash deals are becoming extremely popular. Much of this growth can be attributed to the luxury buyer, a sector of the market that has the means to make a cash transaction happen. But what exactly are these luxury buyers—many of whom are international investors—looking for, and how can you as an agent be sure to meet their needs?
To answer these questions, Better Homes and Gardens® Real Estate commissioned one of the largest surveys ever done on luxury homeowners, with some surprising results recently released.
“Today’s luxury homeowners and buyers are savvier and more confident than ever,” the survey states. “They know what they want and have the resources and capabilities to get it, allowing them to transform luxury living spaces into ultra-comfortable, high-tech homes. Gone are the days when overwhelming amounts of square footage equate to a dream home. The affluent consumer now seeks multiple homes to fit their lifestyle needs and extra amenities, with an affinity for high-tech features.”
The national survey findings from 500 luxury homebuyers revealed the value these consumers see in homeownership. Findings indicate that 75 percent of luxury homebuyers believe homeownership is a more sound investment than the stock market and 57 percent of employed luxury homeowners believe homeownership is a bigger indicator of success than their job or title.
“The luxury consumer is considered a trendsetter in most industries, and to see the strong connection this consumer has with ‘home’ is very significant as we look at the real estate market as a whole,” said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate LLC. “The luxury homebuyer has high standards and invests the money, the time and the commitment to making their home fit their needs and reflect who they are. It’s remarkable that they do this so well that nearly all – 93 percent – believe their house is the best one on their block.”
From a recent interview on Fox Business News, Chris also said of luxury homeowners, “They’re putting their money there because they see it as a long-term investment—and a solid long-term investment—now that the price of housing is starting to go up. If you look at the average home prices…are up 14% year over year, so they’re looking at those numbers.”
In recent years the real estate industry has seen how technology has made not only the luxury consumer, but all consumers more informed than ever. Survey findings show that technology is evolving the role of the real estate agent, but certainly not discounting the personalized connection they provide. Ninety-six percent of luxury homebuyers today are leaning on their real estate agent for more acute information than ever before. They are looking for insight into neighborhood lifestyle (65%), advanced new listing notices (64%), advice on housing trends (55%), and support on a personal level throughout the buying process (53%).