How to Best Serve Affluent Clients

By Fabi R. Gomes | May 20th, 2019

No matter how it is measured–whether by total net worth, homes and other assets, or by financial assets alone–there are many more people living a luxurious life, or at a minimum, a financially free life.

Considering that selling to the wealthy’s home needs— including real estate, home furnishings, interior design, and other home services—seems to be an easy task (when in actuality it is not), below you will find the greatest success in targeting the affluent’s shopping habits with both the capability to buy and a propensity for the lifestyle.

1. Selling opportunity: With their vast financial resources, a millionaire’s opportunities to spend it are endless.

2. Home ownership is all rage: Regardless of the lifestyle and the extraordinary spending habits of the affluent, one thing they all have in common is owning a home.

3. Proper and effective communication: These consumers should be approached with a message that speaks personally to their needs and interests, standing the best chance of making a connection and, ultimately, earning their trust.

4. Exclusivity and personalization: There is no longer one “wealthy persona.” This class is now renowned by a great variety in gender, marital status, age, ethnicity, and other demographic characteristics–and more importantly, consumer behavior, values, and lifestyle.

5. More diverse, more challenging: While the wealthy still tend to be older in age, younger millionaires are at a life stage where their appetite for buying and purchasing luxury goods and services is growing fast. Targeting specific lifestyle interests and values of young millionaires is almost required to succeed.

6. The modern “mobile” life: The affluent are moving from their primary residence or buying second or third homes in other places, or even buying smaller and cheaper houses, but altogether, they may value more than $5M, displaying unusual challenges for real estate professionals.

7. They shop for value: This niche creates new opportunities in the premium space and generates desire. Luxury clients are looking for something new and different with a view toward quality and value.

8. Keep their investments in mind: The affluent have investments everywhere—stocks, bonds, mutual funds, crypto-currency—but most importantly, nearly all invest in real estate. Real estate is tangible: appreciation, home equity, rental property, and tax advantages. According to www.thecollegeinvestor.com, over the last two centuries, about 90% of the world’s millionaires have been created by investing in real estate. It’s no surprise that owning a home is a valuable asset that provides long-term financial gain.

9. Privacy and security: There was a time when privacy concerns were mainly about financial loss. Now, with personal information freely available via the Internet and social media sources, people are using what was once private information to learn where clients live. As a result, the wealthy are proceeding with caution when it comes to grand displays of wealth.

10. Over-pricing: Though their homebuying budget is significantly greater than usual, the affluent still look for deals. They want to feel like they’re getting the most value for their dollar. Although they might be spending millions, they most likely will try to negotiate the home price, look for bargains, and question every expense, just like anyone else.

The human brain works from impulse many times and, very often, people make spontaneous purchases based on emotional decisions. Selling to the affluent, however, can be very tricky. With the rights mindset, knowledge, and tools, you can win when approaching this exclusive demographic.

Coldwell Banker D’Ann Harper, REALTORS® Global Luxury program offers access to the most influential global media for notable properties. As part of an elite marketing plan, a luxury specialist will work closely with regional marketing teams, allowing them to leverage media relationships to expose the story of a home to the most affluent audience.

Coldwell Banker D’Ann Harper, REALTORS®  can be reached at (210) 483-7581 or pr@cbharper.com and has been an affiliate of the Coldwell Banker franchise system for over 30 years. Visit our Facebook page, Blog, and YouTube channel for supportive content and articles.

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