The Coldwell Banker Luxury Homeowner
Profile offers additional insight into the professions, lifestyles and
financial wherewithal of luxury home clientele:
Financial Clout:
Financial clout is the name of the home-buying game among luxury house
hunters. Evidently not as dependent on lower interest rates to make the
move, nearly one-third (31.5%) of buyers paid cash to purchase their one
million dollar plus home. Of those who choose to take on a mortgage, 17%
placed a down payment that was 50% or more than the price of their new
luxury home.
The survey also discovered that despite paying a big price tag for
top-of-the-line homes and amenities, 41% of these luxury homebuyers
still plan on investing more money in the home by doing major
renovations. In terms of negotiating style, the top luxury homebuyer's
tactic was described as "close to the vest, minimum divulgence" (63%),
versus "hardball" (24%) and "money is no object, I just want it" (13%).
Additionally, it seems these homebuyers use these negotiation tactics
successfully to get the best price as the survey indicated that only six
percent actually pay over the asking price.
Career Paths Toward Luxury Home Pathways
While business executives of large corporations are the number one
profession among luxury homeowners, entrepreneurs who own their own
businesses are at a close second. That could be one reason why Coldwell
Banker sales associates define the wealth of their rich clientele as
"new money" (68%), versus " old" or " inherited money" (11%). Other top
professions (in order) of buyers of million dollar plus homes were:
doctor, banker, lawyer, stockbroker, actor, musician and inventor.
Demographics :
Two-thirds of these homeowners are from the " baby boom" generation
(between the ages of 35 and 55), but 28% are moving into luxury
properties as they approach their retirement years (56 years and older).
Only 4% of luxury homeowners are under 34 years of age. Eighty-eight
percent of luxury home purchasers are married, of which 55% have
children. About 1 out of 10 are single (6% men; 5% women). Seven out of
10 luxury homebuyers (72%) come from the same state where they buy their
new home, of which 55% are from the same city. Twenty-four percent come
from out of state, while 3% hail from another country.
At Home and In Style:
It is understandable that these luxury homebuyers are looking for
particular lifestyle items and amenities to enjoy - in the comfort of
their own home. Whether cooking for themselves or employing their own
chefs, designer kitchens are the number one priority for luxury
homeowners. Following kitchens, the top five most requested amenities
(in order) are: media/entertainment room with theater-style seating,
wine cellar, tennis courts/basketball courts, indoor pool and
ballroom/cigar room.
Which proverb is true: " Less is more," or " bigger is better"? When it
comes to number of rooms and square footage, it seems that size is
relative:
Average number of bedrooms a luxury home customer requests when looking
to buy a new home (In order of ranking):
| Rank |
# of Bedrooms |
Percentage |
| #1 |
4 to 5 bedrooms |
89% |
| #2 |
3 or less bedrooms |
5% |
| #3 |
6 to 8 bedrooms |
4% |
| #4 |
9 and up bedrooms |
2% |
Total square footage averages within the luxury homes that were sold in
the past year through the Coldwell Banker sales associates polled (In
order of ranking):
| Rank |
Square Footage |
Percentage |
| #1 |
4,000 to 6,000 |
49% |
| #2 |
2,400 to 3,999 |
37% |
| #3 |
Over 6,000 |
12% |
| #4 |
Under 2,500 |
2% |
The Coldwell Banker Luxury Home Buyer Survey was conducted by Coldwell
Banker Real Estate Corporation in May 2003 over the Internet on
Zoomerang.com. It polled nearly 200 Coldwell Banker Previews
International® sales associates in the U.S. who have sold homes
valued at $1 million dollars or more in the past 12 months.
The Coldwell Banker Previews International® system has been a
world leader in the marketing of luxury homes since 1933. This luxury
home marketing program has been exclusive to Coldwell Banker®
affiliates since 1994. In 2002, Coldwell Banker® sales associates
were involved in the sale of 11,158 properties priced at a million
dollars or more with a total sales volume of $18.9 billion in the $1
million and above price range.
