Wealthy home buyers can be broken into three tiers, according to a new report, “The Affluent Homebuyer: A Quest for Meaning,” by Luxury Portfolio International.
Read more: 4 Myths About Working With Luxury Clients
Those three segments of the luxury buyer market are:
- Practical Explorers: $1 million-2 million range
- Meaning Seekers: $2 million-5 million
- Power Players: $5 million-plus
Practical Explorers, for example, tend to prefer the expertise of a real estate professional to guide them, looking for “trusted experiences,” according to the report. Eighty percent say they prefer to work with a real estate agent on their transactions.
Meaning Seekers often seek status that comes from owning luxury real estate. They also tend to value sustainability (74 percent) and want their purchases to mean something.
As for the top tier—the Power Players—they want the absolute best and they’re willing to pay a premium for it. Eighty-three percent of Power Players surveyed say they choose the best and expect the price to reflect that. They want to feel confident that their purchase is “unrivaled excellence,” the report notes.
“For today’s real estate agent, it’s critical to understand the mindset of the affluent consumer,” says Paul Boomsma, president of Luxury Portfolio International. “The research shows it’s clear that not all consumers are the same, and part of speaking their language is understanding their deepest motivations.”
Download the full report.
Source: Luxury Portfolio International
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