The Focus of The Luxury Consumer in Today’s Market

In the luxury consumer market, including luxury real estate, conversations are focused on experiences rather than consumables.

What do we mean by this? An object must produce an experience, or make an experience more memorable. Otherwise, it is less important and less valuable to the luxury consumer than the experience itself.

For luxury homebuyers, this means that the potential experience of living in the house could be a larger selling point than the house itself.

The most important questions you can ask yourself when marketing a luxury home

Can your luxury consumer…

Specifically picture themselves in an “experience” based on your pitch or marketing materials?
Imagine hosting a dinner in the beautiful chef’s kitchen?
How about throwing a lavish party on the terrace or in the garden?
Enjoy a home that embraces the surrounding environment, captures the view, or integrates unique features?

Your key role as a luxury real estate agent…

is to paint the best, most relatable picture possible. How do you do this? By finding ways to relate to existing consumer experiences.

By making this your top priority you bolster your credibility and establish a profound rapport with luxury consumers. This significantly enhances the likelihood of making a sale.

Price tags are inconsequential if the quality of life isn’t the main reason for the home purchase. Essentially, luxury consumers see the purchase of a home as a lifestyle purchase. Luxury consumers will want to know the value of the home in what experiences it can bring to their lifestyle.

For example: If you may have target prospects are passionate about surfing or sailing. A beachfront property that is close to neighborhood amenities, or within commuting distance, is the perfect place for them.

The goal is to show clients how and why the home is the perfect place to align their lifestyle with their dreams and goals.

Shifting Demographics and a New Type of Conversation

Young luxury consumers are now expanding beyond the historic demographic of inherited wealth; we are starting to see a different type of buyer. This demographic is self-made, entrepreneurial, and is seeking cultural experiences.

With today’s digitally connected business world, young luxury consumers can pursue a certain level of lifestyle while maintaining global connectivity from the comfort of their home. They are also the most informed generation, often moving independently online through most of the buyer journey.

How you create conversation about a home to a young luxury consumer, needs to reflect the mindsets of this new luxury generation:

Take time to study their lifestyle goals.
Determine how you can use this to sell the home.
Paint a “lifestyle” picture.
Show that their lifestyle goals can be achieved in this home.

Sparking a memory or arousing emotions around a potential lifestyle experience within the home is crucial. Learning about the luxury home buyer’s lifestyle requires that you experience and understand their worldview.

Research common topics of conversation, luxury market trends, and current events. This will allow you to accurately portray your knowledge of the luxury market and the luxury lifestyle.

Blue chip conversation topics

Overall, keep the conversation centered around experiences such as food, travel, interior design, fashion, and style. Keep an eye on the latest trends in the luxury lifestyle. This is key to crafting meaningful conversations that position you as credible, knowledgeable, and relatable.

If you haven’t already joined The Institute for Luxury Home Marketing, now is a great time to become a member. Gain additional insights and access to exclusive market tools and reporting. Join today or contact us to learn more!