3 Tips for Luxury Sellers on Getting to Know Your Buyer

3 Tips for Luxury Sellers on Getting to Know Your Buyer
If you own a luxury home priced at $1 million or more, selling presents unique challenges. For luxury sellers, it’s more important than ever to understand the buyer so that you can effectively market your property and entice the highest bid. So who is your most likely buyer and what are they looking for?
A study done by the Luxury Institute of consumers with a minimum household income of $250,000 showed that young money is most likely to be your next homebuyer. 43% of younger wealthy consumers expressed interest in buying a residential property in 2014 compared to just 21% of 55+ participants.

According to the study these younger buyers are also willing to pay more than their older counterparts. On average, young buyers spent more than $2.1 million on their recent home purchases where as older buyers with the same yearly income spent only half that, $1.1 million.

So what is it these young buyers are looking for? Let’s break it down.

The Right Amenities

An open floor plan and fully automated or wired homes rank as the top amenities all ages of luxury buyers are looking for. Think about everyone’s favorite brand Apple, it’s all about simplicity, technological ease and clean modern lines.

Younger buyers however find these amenities more important than the 55+ crowd: pool, outdoor kitchen, home gym, home theater and a wine cellar or room. Today’s generations want to be able to entertain friends and family in their home and these are the amenities that allow them to do it in style.

The least important amenities for all age groups include a separate catering kitchen, tennis and other sport courts and staff quarters.

Environmentally Friendly Homes

Young buyers are twice as likely to value Green or LEED certified homes than those aged over 55. Although they are willing to pay a higher price tag, younger wealthy buyers are concerned with the saving money on their monthly energy bills – and of course saving the planet.

The most popular green fixtures according to the latest NAHB Remodelers survey are low-E windows, high-efficiency HVAC systems, programmable thermometers and Energy Star appliances.

These green home features can reduce energy loss by 30-50% and save thousands of dollars annually on energy bills.

Location, Location, Location

70% of participants cited location as the most important deciding factor in buying their most recent residential property.

Sell your location, not just the house, by highlighting all of the benefits your area like the fact that it’s just steps from the beach or your proximity to great shopping or art galleries.

Finally, get yourself in front of the buyers who are looking for a home in your area. For example, Southern California real estate is popular among Chinese homebuyers. That’s why First Team is affiliated with international brands like Christie’s and Luxury Portfolio who advertise overseas and reach these wealthy foreign homebuyers.

For more advice on how to sell your million dollar home check out these 6 tips.

When it comes to selling your luxury home, it literally pays to work with a professional real estate agent who knows how to reach buyers and market your unique estate.

 

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