According to a recent survey, around 13% of buyers are in a position to purchase a luxury property, while another 26% are thinking about buying this type of real estate. The survey in question was the Luxury Home buyer Survey carried out by realtor.com®.
The article in RISMedia goes on to explore data revealed by the survey which gives some insight into what motivates people to buy high-end properties, as well as their preferred luxury amenities and their expectations for resale.
Although 13% of those surveyed were looking for a luxury home, and 26% were considering such purchase, 61% were not. In the Northeast, Pacific, and Mountain regions luxury home prices were considered to be in excess of $1 million, while in the South Atlantic, North Central and South-Central regions, prices were considered to be in the luxury bracket if they were in excess of $500,000. Real estate experts point out that luxury home buyers form an important part of the real estate market as such purchases tend to lead trends. As a result, builders and sellers and real estate agents should pay particular attention to the type of amenities required, such as high-end kitchens and additional master suite features to help sell homes and close deals.
The survey also looked at the most popular reasons for considering such a purchase. Perhaps not surprisingly, 19% were doing so because of a recent success in their career. Another 17% were looking to purchase a luxury property as they had recently retired, while 14% were looking for an investment, and 12% were purchasing their first home. Apparently even luxury home buyers face challenges, as 40% found it difficult to find a property meeting their needs, while another 20% were limited by the number of properties for sale. Some 11% thought some properties were so unique they had limited appeal, and 8% had difficulty being approved for a mortgage loan.
Over half of those buyers surveyed thought a chef’s kitchen was a particularly important feature, while 44% thought views from the home were also important. The actual square footage of the property came lower down the list, as 38% thought this was most important, while 36% thought an expansive master suite was an important factor.
When it came to thinking about reselling the home, 35% thought resale value was important, while another 29% thought it was neither unimportant nor important. Some 27% thought it was extremely important and just 8% thought resale value to be unimportant.