Luxury Portfolio International™ has released a White Paper entitled "How Today's Highly Affluent U.S. Consumer Selects Luxury Real Estate Associates and Brokerages." The paper focuses on affluent American consumer's wants and needs in today's economic environment. Findings specifically show that performance and reputation are more critical than ever to earning the trust of the consumer.
In late 2010 we engaged the Harrison Group (the research company that authors the Survey of Affluence and Wealth in America) to conduct primary research on behalf of Luxury Portfolio with affluent US consumers. The purpose was to gauge their priorities, likes and dislikes related to the selection of an agent to buy or sell a $1M plus home.
Some key conclusions:
• Reputation remains paramount
• Elegant websites are important, but equally important is 1) that websites popularity, 2) the number of luxury properties represented, and 3) a proven online presence and tracking statistics
• A top priority for today's luxury consumers when selecting an agent is market knowledge and experience (no surprise) but also, global reach
• While the Internet is paramount, printed material is still vital for advertising purposes and must be elegant
• Magazine advertising is still considered appropriate, where the affluent and wealthy expect to find real estate tips and home design trends
The paper also identifies changes brought about by the recession and how consumers have become more fiscally responsible, but expectations have risen. For luxury real estate, this means consumers are seeking fair-priced homes that still provide superb quality of amenities and features that fit the needs and lifestyle for a family setting. They are more focused than ever on "bargains." Luxury Portfolio continues to tap into the minds of the luxury real estate consumer and market trends through studies and reporting on the luxury market.