One population that is quickly changing involves those who have traditionally been interested in luxury real estate. Therefore, it is essential for investors to understand how luxury real estate buyers are changing in order to adapt their marketing techniques in an effort to meet the new needs of the luxury real estate customer.
Luxury Real Estate Buyers from 2008 to Today
Over the last few years even those deemed “wealthy” have been holding tight to their savings and being more mindful of their purchases, partly due to a lack of confidence in the real estate market and overall national economy.Throughout 2012-2013, we have seen these wealthy individuals – some of which are investors themselves – regain confidence and start making large purchases that were essentially absent over the last few years. Of course these purchases include real estate.
Luxury Real Estate Buyers in 2013
With luxury real estate buyers gaining confidence in the real estate market, you can expect to see an increase in luxury real estate purchases throughout 2013, especially since many people believe that home prices will only continue to rise and therefore the homes they purchase now will be worth more in the future – making real estate a “safe” investment It is essential for investors and realtors to understand the mindset of these wealthy buyers. First and foremost, size does matter, but often not nearly as much as the artistic value the home has to offer – many prefers homes that lend itself to a great story. Second, brand matters. Just as wealthy individuals prefer brand name clothing, they also prefer real estate properties that have been branded. Finally, these individuals think about the potential to sell the property in a future and obtain a nice return on their investment; therefore, although they are wealthy they are still looking for a great deal.