Today's Affluent Home Buyer

by Chuck Roper 24. September 2018 05:04

The high end home buyer today is savvier when it comes to luxury brands, more discriminating when it comes to amenities and has more choices than ever before.   More than ever, the affluent consumer has access to an abundance of goods and services in all aspects of their lives.  Choosing a home is no exception.

 

Luxury Portfolio International, a leading opinion leader of all things luxury, has taken a deep dive into the mindset of the millionaire homebuyer.  Today’s luxury buyer wants pristine, new condition.  Only 5% are looking to renovate completely; 15% will consider buying an older home completely renovated.  55% want privacy and energy efficiency/environmental design.  Luxury buyers want a master bedroom with a luxurious bathroom (54%), walk in closets (51%), outdoor living/entertaining (49%) and an open floor plan (49%).

 

Janet McAfee is the exclusive St. Louis member of Luxury Portfolio International. 

To My Fellow Realtors, “Buyers and Sellers still need YOU”

by Chuck Roper 10. September 2018 05:37

Just released, a 2018 Harris Insights & Analytics study reported that 90% of all buyers and sellers used a real estate agent in their transaction.  This is up from 85% in a similar study conducted four years ago.  

 

The most important factors in choosing an agent were:  “a referral from someone I trust,” “agents who had listings similar to what I am looking for,”  “looking at websites with ratings of agents” and “having a personal relationship with the agent.”

 

Negotiating the best price was mentioned by 89% of buyers and sellers as being extremely or very important.  

 

I’m not surprised by these findings.  A real estate transaction is complex and stressful.  Why wouldn’t you rely on a professional with a proven track record from a reputable brokerage to help you navigate the most important purchase of your life?

 

(Source: Real Trends September 2018 newsletter)

-Janet Horlacher

What Constitutes Luxury?

by Chuck Roper 30. July 2018 09:03

If there’s one thing I’ve learned all these years as a luxury Realtor, is “Luxury” means something unique to each of us.  Luxury is personal.  

•  Luxury = Lifestyle.  Luxury buyers are inspired by amenities which enhance the home experience.  Lifestyle seekers are excited by outdoor kitchens, breathtaking pools and spas, wine tasting rooms, whole house media systems and over the top master closets. 

•  Luxury = Smart.  Technology has introduced a whole new landscape of luxury features for savvy home buyers.   Temperature controlled wine cellars, variable speed air conditioners and window glass which goes from clear to opaque are features which motivate this buyer.  Does our future include A.I. devices in every room?

•  Luxury = Aesthetic.  Buyers are seeking exceptional design and exclusivity.   Architectural provenance is important for the buyer looking for historic significance.  Haute home interiors include hand crafted draperies and authentic wall murals, which cannot be replicated.

What does luxury mean to you?   

-Janet Horlacher

Is the Market Heating Up?

by Chuck Roper 25. June 2018 06:54

Is the real estate market as HOT as our temperatures have been?  Every month, we monitor key statistics for all homes in our MLS as well as specific geographies.  Here’s a snapshot of all homes in the MLS this year through May 31, 2018 compared to last year.

 

 

 

 

 

 

Closed Sales Dollar Volume          Up 6.5% 

Average Sold Price                       Up 4.3%

 

Average Days on Market               Down 3.6%

% List Price to Sale Price              Up .4%

 

New Listings                                Up 1.2%

Available Listings                         Down 3.6%

 

Our collection of fine listings has never been better. 

 

Janet Horlacher

Who is Buying Our Luxury Listings?

by Chuck Roper 9. June 2017 07:46

This month we focus on marketing strategies for luxury listings, which we define as properties over $1 million.  As the recognized leader in this segment, the Janet McAfee reach is extensive, selling the finest homes in St. Louis County, St. Louis City, St. Charles and Franklin County (home of St. Albans Country Club).   You may be surprised to learn there are 356 listings over $1 million, and out of these, 66 have accepted offers to purchase.  So, who is searching for million dollar homes and what are they looking for?

Our Luxury Portfolio International website reaches 3 million high net worth visitors annually.  Among those planning to purchase a luxury home:

  ·         95% are homeowners

·         Average age is 36 years

·         97% are college educated

·         Average household income is $372,000

·         57% own a second home

 What is the affluent buyer looking for and how do we engage them?  Again, we draw upon our past experiences through years of marketing to this segment.

 

 1.       Lead with Brand Names.  Luxury buyers need to be convinced of quality in order to justify paying the high price.  Marketing brochures and special feature sheets include the names of architects, designers, high end appliances, uniquely sourced fixtures, cabinetry designers and craftsmen.  Luxury brands are important to luxury buyers.

 

2.       Invest in the Best Photography.  Technology has allowed us to present luxury homes with exquisite high definition images, twilight photograph, soaring aerial shots, drone videos and intricate floor plans.  The first property viewing is virtual, so the online representation must be absolutely flawless in order to bring them across the threshold.

 

 3.       Advertising should present an Inspired Lifestyle.  Buyers are looking to enhance their lifestyle, not be inundated with a tedious list of every factoid you can think up.  Our job is to show prospective buyers the experience of living in the home and how the amenities will enhance their lives.

 

 4.       Tell the Home's Unique Story.  Many historic and architecturally significant listings have remarkable histories about former residents who shaped St. Louis.   For a newer home, it could be a story about choices made during the construction or why a specific architectural element was selected.

 

 5.       Place Advertising to Reach Affluent Buyers.  Yes, it’s true that active buyers are all looking on line.  But, people are ALSO reading the Wall Street Journal, coffee table magazines and society pages.  It’s surprising how often someone, who is not actively looking to move will become a motivated buyer after seeing the right property in a beautiful ad.

 

 6.       Please, please DON’T “Test the Water” with your introductory price.  Affluent buyers are not stupid.  Yes, you may attract a wealthy Californian, but they are still going to do their homework and analyze comparable home sales.  They are not going to waste their valuable time going to see a listing which is overpriced and out of their price point.  Luxury buyers demand a good value and they’re not afraid to pay for it.

 

 

Janet Horlacher

Principal, Janet McAfee Real Estate

 

Exclusive member of Luxury Portfolio International

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