Luxury Portfolio Vol. 07 Issue 02 - George Scarpias

THE AFFLUENT HOMEBUYER: A QUEST FOR MEANING IDENTIFIES THREE DISTINCT TIERS OF LUXURY BUYERS:

1 PRACTICAL EXPLORERS The first tier, Practical Explorers, buyers in the $1–$2 million range, seek trusted experiences and 80% prefer to work with a real estate agent on their transactions. These buyers choose lifestyle over luxury and want to feel like they are making a smart decision. They have earned significant wealth, and have a relatively long experience with affluence, making them both diligent and loyal. Their lives and passions focus on family-friendly activities, volunteering, and promoting their personal wellbeing.

2 MEANING SEEKERS The Meaning Seekers, buyers in the $2–$5 million range, are luxury lovers and 71% of this group proudly assert that once you experience true luxury, it’s hard to scale back. However, there is more to these purchasers, they are also seeking emotional connection in their purchases. They prize artistically beautiful things and their purchases also reflect their personal style and sensibility. When it comes to investments, they lead with their values: 74% state that sustainable living is a core value and 73% say that a company’s sustainability efforts impact their investing decisions.

3 POWER PLAYERS

The Power Players, those in the $5 million and above range, have reached a pinnacle of accomplishment. They acquire the finest, most premier properties and are willing to pay to get them. In this echelon, 83% of those surveyed say that they choose the best and expect the price to reflect this. They are motivated by a desire to have it all and want to feel confident that what they have purchased is unrivaled excellence. While 95% of them say they have all they need to be happy, they still have a healthy sense of competition with their peers when it comes to acquisition. They are focused on being happy, fulfilled, giving back and adding quality in everything they do.

Excerpted from The Affluent Homebuyer: A Quest for Meaning which can be downloaded in its entirety from luxuryportfolio.com/whitepaper.

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