Psychology behind Luxury Real Estate is not a common term. Psychology by itself is hard to grasp it can relate to low self-esteem or a confrontation to your demons. But when you study consumer behavior, psychology can help you determine the characteristics of your ideal buyer.
Now, Luxury Real Estate is a market with a different mindset of its own and learning the psychology behind your Luxury Buyer and how decision making is prioritized could help impact your client.
1.- Psychology behind Luxury Real Estate Buyer quality of life is far more important.
A Luxury Buyer is very knowledgeable and wants the best deal on his investment, but far more important is the Lifestyle & Quality of Life a property would bring to its life.
A property needs to cater to the expectations whether it is an entertainment area to foster social occasions with friends, as to family unique sundown views spending spare time from the pool long chairs.
As an Agent, you need to keep quality of life as the main focus to understand your buyer tastes, small details of the daily style of living are more important. Do not get impressed or intimidated by their wealth they are as normal as we all are and the extravaganza of their wealth is just an added value that is our job to learn to cater.
2.- How you use your Data & Metrics can be overwhelming.
The pre-qualification of your buyer, as well as his deposit intentions, reveal the type of buyer you are taking care of. Data and metrics are important but they are not your only card to convince them.
You are dealing with highly educated buyers that can understand Real Estate facts, concepts and dynamics very quickly. Your bet convincing them to buy a property depends more on your ability to understand their needs and your service catering their style of life.
A Home is far more than just a return of your investment.
3.- Family Estates
Details on the interests behind your Buyers intention to invest in Luxury Home is extremely important. At some point in life, Heritage Investment to provide long-term financial security for your loved ones and future generation is very important.
This is why understanding the motif of your Buyers is so important, long-term financial security investments require a different perspective of your data analysis & insight and assistance from their financial advisors.
As the Agent, your role is to provide the best resources on your market, the benefits & Specialist Advisors to help your Buyer and convince their financial team of the investment.
4.- Quickly Identify your Buyer
Not everyone is the same, and quality of life is subjective. You will find more connection and work better with those that share your same views and lifestyle.
Now typically divide them as:
Luxury: These Buyers have a preference for social standards and status. Their focus and decisions are extremely influenced by a circle of friends, impacting and making them feel a priority.
Self-Made: These Buyers are self-reliant they are the best researchers, they know where to find information and they want to be part of all details of the process as if they were the client instead of them.
Magnate: These Buyers are the leading or head experts of a business or specific fields. The Information you facilitate should be in the form of a decision-making approach to get them to approve it.
Now, regardless of the psychology behind luxury Real Estate factors involved building a relationship with a Buyer, and ultimately help them buy a property, your attitude, and genuine character is key.
Honesty and trustworthiness on your way of handling the transaction define how to win a customer on your portfolio.