As 2020 slips into Spring, Very-High Net Worth Individuals will become the most influential demographic in the luxury real estate market. These clients possess a few distinct differences from their UltraHigh Net Worth counterparts and are redefining the culture around million-dollar homes.
Knowing how to capture their attention in the months and years to come will be crucial for luxury real estate success.
Who Are Very-High Net Worth Individuals?
With a net income ranging from $5-30 million, VHNW individuals are typically in their 30s-40s, self-made, self-managed, and many own global online businesses. As a luxury real estate agent, you’re likely to work directly with these clients rather than a gatekeeper—something that is more common when working with UHNW Individuals.
Fortunately, even in the face of uncertain times and a teetering real estate market hanging in the balance, this group of high earners will likely prevail with minimal financial impact due to most conducting their business online.
With a low barrier to entry in the online marketplace, this demographic is expected to grow rapidly over the next few years as more digital entrepreneurs find massive success.
As buyers and investors, this particular demographic are interested in owning multiple properties worldwide, which means that working with them almost guarantees repeat business from them or their extensive networks if you give them a referral-worthy experience.
Think Smaller & Simpler
A preference towards minimalism has dominated the luxury real estate market for months, and March’s Luxury Market Report shows that the trend continues to take the lead over grandiose displays of wealth.
From design to decor, the markedly younger clientele moving into the luxury real estate market desires clean, open spaces that support their creativity, wellness, and productivity since the majority tend to work from home.
Most prefer luxury condos complete with communal living areas and close proximity to dining and entertainment. They favor walkable cities, and like most luxury clientele, are opting out of major markets like Los Angeles and New York to head to secondary markets like Nashville and Austin to escape higher property taxes.
They have made it clear that looming mansions and ornate furnishings are no longer the definitive mark of wealth, which is important to keep in mind working with them as buyers.
If you have sellers with older, larger homes, help them understand the new market’s tastes and work with them to make reasonable adjustments. At the very least, staging should reflect the clean, neutral, and natural aesthetic these buyers prefer, and listing copy should include any wellness or productivity benefits the property can offer.
Prioritize Your Online Presence
Since these unique prospects live and work globally, the majority of them will start their buyer or seller journey online. Many use listing portals, organic search, and social media to find an agent to work with and can be easily targeted with direct campaigns on Facebook, Instagram, and LinkedIn.
That means making a consistent effort with blog, video, and social media content is key to capturing their attention, and they’re likely to work with the agent they learn the most from. Since most are entrepreneurial, addressing topics like non-traditional financing, real estate investing, and market trends can engage their interest.
Keep Your Luxury Real Estate Practice Thriving In Uncertain Times
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