- If you've failed to break into the luxury market, there’s a reason –- but it's a reason you have control over.
- With the wealth moving to a younger generation, the type of real estate they want has changed to. You have to know what they want to sell to them.
- The young affluent are no longer focused on property that garners attention. They want property where they can entertain with privacy.
If you’ve tried to sell luxury real estate in the past, and you just weren’t able to make it work, there’s a reason. In fact, there’s one big reason that most agents never break into the luxury market. Fortunately, you can avoid this pitfall and make it big in luxury real estate.
Young affluence
The demographics of the wealthy in the U.S. have changed in the past 20 years. Most of the wealth used to be focused in the over-60 age group. Now, wealth has shifted to the 45-60 age group. And along with that shift has come a major change in what the wealthy want.
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This is where most luxury real estate agents miss the opportunity. The new wealth doesn’t want the same things the blue bloods and old guard wanted. The younger affluent have different needs and different desires. If you want to make in luxury real estate, you have to know what the wealthy are looking for now.
To understand what the younger affluent look for in their real estate purchases, you have to know your client. The younger affluent are at ease with their achievements. In fact, they’re excited about what they’ve accomplished, and they should be — they’ve earned it faster than most people in history have.
Because of this, young affluent real estate buyers want to share their success. They enjoy entertaining, and they love to entertain outside. So finding homes that cater to outdoor entertainment is vital.
But that’s not all they want. More and more of these wealthy professionals work out of their homes. Technology has made it so working at home is easier and cost effective. So the young affluent are looking for a dedicated work space.
Bigger isn’t always better
One of the more vital desires luxury real estate agents must be aware of is that size is no longer the primary focus of the wealthy. Bigger isn’t always better. Instead, the young wealthy in this country is looking for design and finish.
But more importantly, they’re looking for location. They want privacy. So many of them are looking for land. However, they don’t want to live too far out in the country. They want easy access to private clubs and private elevators.
Although they love to share their success with their friends and family by entertaining, the younger affluence isn’t ostentatious and showy. Most of them are looking for a lower-key lifestyle that doesn’t draw attention to their wealth.
So if you’ve struggled to make it in the luxury market, take another look. With the right coaching and training, you can sell luxury real estate, and you can do it very effectively.
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Kevin M. Leonard is the founder of Luxury Agent and Valore Group. You can follow him on Twitter or LinkedIn.
