Understanding the luxury home buyer

As a custom home builder, I am feeling much better about the luxury real estate market. And while my optimism may be cautious, my confidence is increasing daily.

Though the economy is recovering the economic environment has changed indefinitely. It is important that as builders we understand the changing needs and wants of luxury home buyers when it comes to working with a real estate agent or broker.

Luxury Portfolio International just released a White Paper that found the following conclusions on today’s luxury real estate buyer:

• Home buyers make decisions based on the reputation of realtors, and brokers
• Elegant websites are important, but equally important is the website’s popularity, content, and proven online presence
• A top priority for today’s luxury consumers when selecting an agent is market knowledge, experience, and global reach
• Internet is paramount, but printed material is still vital for advertising (printed material must be elegant and of high quality)
• Magazine advertising is still fitting, where the affluent and wealthy expect to find real estate tips and home design trends

The white paper also went on to identify key changes resulting from the recession:

• Consumers are more fiscally responsible
• Consumer expectations have risen-luxury real estate buyers are looking for fair-priced homes that still provide superb quality of amenities and features

It is essential to comprehend that high-end consumers are increasingly sophisticated and knowledgeable on the real estate market; as a result, they want to deal exclusively with real estate agents considered to be the authority in the luxury real estate market. To reach this selective market it is crucial to work with true real estate experts, who address and understand the issues that speak to the high-end buyer’s interests and passions.

Read the entire White Paper entitled “How Today’s Highly Affluent U.S. Consumer Selects Luxury Real Estate Associates and Brokerages.”