Hard work does pay off, especially when it comes to homeownership. According to a recent online survey of 683 Coldwell Banker Previews International property specialists, 96 percent reported that their customers who buy multi-million dollar homes are "self-made" millionaires with "new money."
When asked for the top professions of their customers, the respondents indicated that 88 percent are business or corporate executives; 37 percent are physicians; 31 percent are lawyers; 30 percent are in finance; and, 14 percent are entertainers, entertainment executives or professional athletes.
Much has been made about what can be found inside the extravagant luxury homes that we see in affluent communities across the nation. But Coldwell Banker wanted to learn more about exactly who buys and owns top-tier homes, and how they make those purchases. The study also found that for 64 percent of Coldwell Banker Previews International customers, the square footage of a house was more important to them than the size of the property. Fifty-eight (58) percent of sales associates polled indicated that the typical size of their Previews homes sold in the past year was between 3,000 and 5,000 square feet, while 27 percent of respondents said their typical sale was between 5,000 and 8,000 square feet. Forty-two percent of the sales associates surveyed indicated that their luxury customers typically put a 20 to 30 percent down payment on a million dollar-plus home, with 25 percent of their clients putting down between 30 and 50 percent.To put it in perspective, some of these buyers are putting down between $400,000 and $600,000 cash on a $2 million property. Clearly, these homebuyers have very worked hard to earn their money and are willing to spend it to live well.
When involved in financial transactions of this magnitude, these luxury homebuyers require their real estate professionals to be equipped with special skills. Seventy-eight (78) percent of respondents said the number one special need that their extremely affluent clients require is privacy and/or confidentiality. Additionally, 44 percent of the sales associates polled said their customers require their real estate professional to be able to work well with their executive assistants, CPAs, attorneys and other representatives. When asked about "must have" amenities buyers require in their luxury homes, 60 percent of respondents answered that their customers want media rooms and 60 percent answered that their customers want "wired" homes. On the flip side, the sales associates polled said that their clientele believe that gourmet kitchens, granite countertops and wet bars are no longer considered luxuries.
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