Wealth, real estate and the high net worth investor

Page 1

C O L DW EL L BA N K ER PR E V I E WS I N T ER N AT I O N A L 速 A N D IPSOS M ED I ACT

WE ALTH, RE AL ESTATE AND THE HIGH-NE T-WORTH INVESTOR SURVEY AND INSIGHTS INTO PREFERENCES AND BEHAVIOR


TABLE OF CONTENTS

Objective and Methodology

03

Key Findings

04

High Net Worth and Generational Differences

07

Appendix

10

Home Ownership Profile

11

Most Recent Residential Property Purchase

13

Real Estate Information Sources

16

Buying or Selling with Assistance from Agents

17

Looking Ahead: Future Plans and Expectations

20

Sur vey in partnership with Ipsos MediaCT

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

2


OBJECTIVE A ND METHODOLOGY NRT commissioned Ipsos MediaCT to conduct research among high-net-worth individuals (HNWIs) in the United States with a minimum household income of $200,000 per year and a minimum net worth of $5 million. HNWIs reflect 1.8 million households, or roughly the top 1.5% of the U.S. population, according to the 2013 Survey of Consumer Finances. Respondents were recruited and screened to include only those age 21 or older. A nationwide survey of 500 HNWIs individuals was conducted in Quarter 2 of 2015. The survey data have been weighted with respect to the demographic variables shown in this table to better reflect the profile of consumers in wealthy households according to the 2013 Survey of Consumer Finances. These results are intended to provide important real estate investment insights that can influence decision making and best practices implementation for real estate agents. HIGH-NET-WORTH INDIVIDUAL DEFINITION Age: 21+ years old | Annual household income: $200,000+ | Net worth: $5 million+

HIGH-NET-WORTH INDIVIDUALS REFLECT

OR

1.8 MILLION

ROUGHLY

HOUSEHOLDS

Sample Profile

Gender ratio (M:F)

TOP 1.5% OF THE U.S. POPULATION*

2013 SCF Benchmark

Survey Data (unweighted)

Survey Data (weighted)

n/a

55%:45%

56%:44%

AVERAGE AGE 53

Age: <65 / 65+

Household Income: $200K-$499K $500K-$999K $1M or more

Net Worth: $5 - $9.9M $10M or more

61% / 39%

81% / 19%

61% / 39%

38%

52%

38%

30%

8%

30%

32%

40%

32%

59%

64%

58%

41%

36%

42%

56% MALE AVERAGE NET WORTH $8.5M AVERAGE HOUSEHOLD INCOME: $609K

41% of the survey sample had $10 million or more in net worth – reflecting the top 0.6% of U.S. population*

*According to the 2013 Sur vey of Consumer Finances

COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

3


K EY FINDINGS R E S I D E N T I A L R E A L E S TAT E C E N T R A L TO L I V E S A N D F I N A N C E S

AVERAGE NUMBER OF HOMES OWNED

NET WORTH IN RESIDENTIAL REAL ESTATE

38%

2.1 PURCHASING PROFILE 43% PURCHASED RESIDENTIAL REAL ESTATE IN THE PAST FIVE YEARS (68% IN THE PAST TEN YEARS)

56% PAID CASH FOR THEIR MOST RECENT PURCHASE OF RESIDENTIAL REAL ESTATE

58% PAID BELOW ASKING PRICE (VS. ONLY 5% PAYING MORE)

“ M O D E R N ” A M E N I T I E S R I S I N G —G R E E N , S M A R T, O PE N Compared to three years ago, how (if at all) has the importance of these amenities changed for you?

Less important

READY-TO-MOVE-INTO (NOT A FIXER-UPPER)

-6%

GREEN OR LEED CERTIFIED

41% 36%

-8%

OPEN FLOOR PLAN

-4%

36%

34%

-11%

-7%

HOME THEATER SAFE ROOM

43%

-3%

FULLY AUTOMATED/WIRED ENVIRONMENT

HOME GYM

More important

-9%

COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

32% 30%

4


K EY FINDINGS 8 I N 10 ( A N D R I S I N G ) U S E R E A L E S TAT E AG E N T S FO R B U Y I N G , S E L L I N G

Made their most recent purchase with a real estate agent (up from 77%)

Made their most recent sale with a real estate agent (up from 77%)

82%

81%

Likely to use their real estate agent again

Find it very comforting to work with a real estate agent who is associated with respected real estate company

76%

92%

R E A L E S TAT E AG E N T S A C R U C I A L R E S O U R C E • 72%: These days, working with a real estate agent to buy or sell a home is more important than ever before • 64%: I would never consider selling a home without using a real estate agent • 63%: I would never consider buying a home without using a real estate agent t 58% say contact with a real estate agent is extremely or very important when choosing a home — #1, ahead of friends, family and digital resources

COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

5


K EY FINDINGS H N W I S E X PE C T R E S P O N S I V E AG E N T S

M O S T I M P O R TA N T C H A R AC T E R I S T I C S O F R E A L E S TAT E AG E N T S ( AV E R AG E O N 10 - P O I N T S C A L E ; TO P 6 S H O W N )

8.23

RESPONDS QUICKLY TO MY MESSAGES 8.22

EXPERIENCED

8.19

KNOWLEDGE OF HOME BUYING AND SELLING PROCESS KNOWLEDGE OF HOME SALES HISTORY IN AREA WHERE BUYING/SELLING

8.08 8.06

HAS AN EXCELLENT REPUTATION CREATED A POSITIVE IMPRESSION WHEN I FIRST MET HIM/HER

8.00

N OT E : S E L E C T E D I T E M S S H O W N – F U L L L I S T O F I T E M S I N T H E A P P E N D I X .

RESPONSE EXPECTATIONS HIGH

IT’S LESS ABOUT CHANNEL

ABOUT HALF expect a response within one hour ABOUT TWO-THIRDS within two hours VIRTUALLY ALL within one business day

85% like phone calls 84% like email 60% like texts

OV E R H A L F A N T I C I PAT I N G A R E A L E S TAT E PU R C H A S E

PLANNING TO PURCHASE RESIDENTIAL REAL ESTATE IN THE NEXT 12 MONTHS

54%

48% from 2014

t Those considering a purchase are twice as likely to be looking for a residence for their personal use, as opposed to purely for investment/rental purposes. t Still, purchase intenders strongly consider the property’s growth potential, and 94% expect their property to grow, on average, 16% in value over the next five years. t Those not considering a real estate purchase are primarily content with their current holdings (as opposed to avoiding real estate purchases due to economic uncertainty or a desire to remain liquid).

COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

6


HIGH NET WORTH A ND GENER ATIONA L DIFFERENCES BOOMERS ARE THE MOST PRE VALENT (AND MOST DIVERSIFIED) GENER ATION OF HNWIS Millennials (age 18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

26%

31%

43%

Average household income

$683K

$703K

$544K

Average net worth

$9.7M

$9.2M

$8.1M

54%

54%

26%

Percentage of HNW population

% of net worth in residential real estate

K E E P I N M I N D T H AT M I L L E N N I A L S M AY N OT B E T H E “ P R I M A R Y B R E A D W I N N E R S ” C O N T R I B U T I N G TO T H E H N W S TAT U S O F T H E S E H O U S E H O L D S

MILLENNIALS ARE MOST RELIANT ON AGENTS, AND MOST COMFORTED BY ASSOCIATION WITH A RESPECTED REAL ESTATE COMPANY Millennials (age 18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

I find it very comforting to work with a real estate agent who is associated with a respected real estate company

99%

90%

91%

These days, working with a real estate agent to buy or sell a home is more important than ever before

93%

83%

60%

I would never consider buying a home without using a real estate agent

90%

71%

50%

I would never consider selling a home without using a real estate agent

86%

73%

53%

BOOMERS DOWNSIZING, AND MOST LIK ELY TO HAVE TR ANSACTED WITHOU T AN AGENT Millennials (age 18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

Amount paid for the home or residential property you purchased most recently

$4.958M

$5.239M

$1.553M

Purchased your most recent residential property with the assistance of a real estate agent

94%

90%

75%

Sold most recent residential property with the assistance of a real estate agent

79%

70%

63%

COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

7


HIGH N ET WORTH A N D GEN ER ATIONA L DIFFER ENCES CONTIN UED RE AL ESTATE AGENTS PARTICUL ARLY IMPORTANT TO MILLENNIALS AND GEN X ERS How important was contact with a real estate agent when searching for the home you purchased most recently?

Percentage extremely/very important

Rank vs. other items on list

Millennials (age 18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

76%

70%

47%

Clear #1

Tied for #1 with real estate brand website

Clear #1

SOCIAL MEDIA AND CUSTOMER RE VIE WS ARE PARTICUL ARLY IMPORTANT TO MILLENNIALS I M P O R TA N C E W H E N S E A R C H I N G F O R A R E A L E S TAT E AG E N T ( 8 , 9 O R 10 O N A 10 - P O I N T S C A L E ) Millennials (age 18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

Reputation of the company the agent works for

77%

66%

52%

Recommendations from family/friends

75%

69%

48%

Customer reviews (Yelp, Angie’s List, etc.)

71%

61%

22%

Social media (Facebook, Instagram, LinkedIn, etc.)

61%

47%

7%

MILLENNIALS MOST LIK ELY TO BU Y SOON, AND BASED ON LIFEST Y LE (R ATHER THAN LOCATION)

Considering purchasing additional residential real estate in the next 12 months

Millennials (age 18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

69%

50%

17%

W H I C H S TAT E M E N T B E S T D E S C R I B E S YO U R N E X T S E A R C H F O R A PRIMARY RESIDENTIAL PROPERT Y?

I am free to choose a residence that truly fits my lifestyle and will not limit my search based on location

I will pick the location of my next residence first, and then find a property that fits my lifestyle

Millennials (age 18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

85%

69%

29%

15%

31%

71%

COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

8


HIGH HET WORTH A N D GEN ER ATIONA L DIFFER ENCES CONTIN UED GEN XERS HAVE THE HIGHEST EXPECTATIONS FOR QUICK RESPONSES; HALF OF ALL GENERATIONS EXPECT RESPONSES TO TEXT WITHIN AN HOUR Millennials (age18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

Phone/voicemail

86%

90%

85%

Email

83%

87%

83%

Text

75%

74%

49%

Millennials (age 18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

Voicemail

46%

65%

38%

Email

39%

50%

29%

Text

51%

51%

47%

ME THODS LIKED FOR C O M M U N I C AT I O N W I T H R E A L E S TAT E AG E N T

E XPECT A RESPONSE WITHIN AN HOUR

MILLENNIALS USE A WIDER R ANGE OF CRITERIA WHEN CHOOSING A RE AL ESTATE AGENT

E X T R E M E LY/ V E RY I M P O R TA N T WHEN SELECTING A RE AL E S TAT E AG E N T

MILLENNIALS WERE ALSO MORE S AT I S F I E D W I T H T H E R E A L E S TAT E AG E N T S T H E Y U S E D O N E AC H O F THESE DIMENSIONS

Millennials (age 18-34)

Gen Xers (age 35-49)

Boomers (age 50+)

Created a positive impression when I first met him/her

72%

59%

48%

Experienced

70%

57%

60%

Skilled in dealing with contracts and legal paperwork

70%

63%

43%

Has credentials indicating experience and knowledge in the luxury housing market

70%

61%

29%

Responds quickly to my messages

69%

61%

55%

Knowledge of home sales history in the area where I was buying/selling

69%

62%

50%

Has an excellent reputation

64%

55%

48%

Strong negotiator

63%

51%

47%

Knowledge about home buying and selling process

62%

62%

55%

Expertise in the luxury home market

60%

54%

28%

Has access to a special luxury home marketing program

56%

52%

19%

Works for a real estate agency with an excellent reputation

55%

56%

44%

Ability to be discreet

49%

51%

37%

Works for a firm that has international connections

47%

42%

12%

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

9


APPENDIX

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

10


HOME OW NERSHIP PROFILE NUMBER OF PROPERTIES OWNED

O N AV E R AG E , U. S . H N W I S O W N 2.1 H O M E S T H AT A R E U S E D F O R P E R S O N A L R E S I D E N C E S O R VAC AT I O N H O M E S

40%

39% 35% 31%

K E Y:

2 014

2 015

15% 12% 7% 5%

5% 2%

1

2

3

4

5

4%

4%

MORE THAN 5

Q1. How many homes do you currently own and use as personal residences or vacation homes? Base: All respondents (n=500)

PERCENTAGE OF NE T WORTH IN RE AL ESTATE

O N AV E R AG E , 3 8% O F N E T W O R T H I S I N R E S I D E N T I A L R E A L E S TAT E

16%

8 0% A N D A B OV E

10%

6 0% - 79%

13%

4 0%

4 0% - 59%

L ES S T H A N 20%

2 2%

20% - 3 9%

Q1a. What percent of your overall net wor th is in residential real estate? Base: All respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

11


HOM E OW N ERSHIP PROFI LE CONTIN UED TRENDS IN DESIRED AMENITIES Less important

Ready-to-move-into (NOT a fixer-upper)

6%

Open floor plan

36%

4%

Home gym

36%

11%

34%

Home theater

7%

Safe room

32% 30%

9%

Four or more garages

15%

Wine cellar or wine room

30% 28%

14%

28%

10%

Outdoor kitchen Pool

11%

Space to display art collection

11%

27%

26%

10%

Separate guest house

26%

16%

25% 12%

Separate catering kitchen

Staff quarters

41%

8%

Green or LEED certified

Tennis court or other sport court

43%

3%

Fully automated/wired home environment

Deep-water dock

More important

22%

18% 16%

21% 18%

Q3. Compared to three years ago, how (if at all) has the impor tance of these amenities changed for you? Base: All respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

12


MOST RECENT RESIDENTIA L PROPERT Y PURCHASE 43% HAVE PURCHASED RE AL ESTATE IN THE L AST FIVE YE ARS

7%

2 5%

L ES S T H A N 1 Y E A R

5-9 YEARS

15%

20 + Y E A R S

17%

17%

10 -19 Y E A R S

3-4 YEARS

19%

1-2 Y E A R S Q5. Now we would like to ask some questions about the home or residential proper ty that you purchased most recently. How many years ago did you purchase it? Base: All respondents (n=500)

AMOUNT PAID FOR MOST RECENTLY PURCHASED PROPERT Y

T H E M E D I A N P U R C H A S E P R I C E PA I D B Y U. S . H N W I S F O R T H E I R M O S T R E C E N T P R O P E R T Y I S $1. 3 M ( D O W N F R O M $1. 8 M )

25%

2014

2015

21% 19 % 17%

17%

13%

10 %

10 %

9% 7% 5%

5% 5%

UNDER $ 5 0 0,0 0 0

$ 5 0 0,0 0 0 TO < $1M

$1M $1.4 M

$1. 5 M $1. 9 M

$2M$ 2. 9 M

7%

5% 4%

4%

9%

3%

$3M$3.9M

4%

$4M$ 4. 9 M

$5M$6.9M

$ 7M $ 9. 9 M

$10 M OR MORE

Q8. Approximately how much did you pay for the home or residential proper ty you purchased most recently? Base: All respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

13


MOST R ECENT R ESIDENTIA L PROPERT Y PURCH ASE CONTIN UED CASH PURCHASE?

A M A J O R I T Y O F U. S . H N W I S R E P O R T PAY I N G I N C A S H F O R T H E I R M O S T R E C E N T LY PURCHASED HOME OR RESIDENTIAL PROPERT Y

4 3%

57%

TO O K O U T A H O M E LOA N O R M O R TG AG E F O R AT L E A ST S O M E O F I T

PA I D E N T I R ELY I N CA S H

Q6. Which statement best describes how you paid for the home or residential proper ty you purchased most recently? Base: All respondents (n=500)

PERCENTAGE OF HOME PAID WITH LOAN

W H E N A M O R TG AG E I S TA K E N B Y H N W I S , I T I S T Y P I C A L LY FOR HALF OF THE PURCHASE PRICE

14%

H O M E LOA N 76% - 10 0%

3 6%

H O M E LOA N 51%- 75%

18%

H O M E LOA N 1% - 25%

3 3%

H O M E LOA N 26% - 5 0%

Q7. Thinking again about the residential proper ty you purchased most recently, what percent of the home price did you pay for with a loan or mor tgage? Base: Took out Home Loan or Mor tgage For Home or Residential Proper ty Payment (n=222)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

14


MOST R ECENT R ESIDENTIA L PROPERT Y PURCH ASE CONTIN UED FINAL PRICE OF HOME

T H E M A J O R I T Y O F H O M E P U R C H A S E S W E R E M A D E AT L E S S T H A N T H E A S K I N G P R I C E

6%

PA I D M O R E T H A N A S K I N G PR I C E

5 8%

3 6%

PA I D B ELOW A S K I N G PR I C E

PA I D A S K I N G PR I C E

Q9. Which statement best describes the final price that you paid for the residential proper ty you purchased most recently? Base: All respondents (n=500)

RE TAINING A RE AL ESTATE AGENT OF TEN RESULTS IN PAYING BELOW ASK ING PRICE. Used Real Estate Agent to Buy

Did not use Real Estate Agent to Buy

Paid below the asking price

60%

49%

Paid the asking price

33%

51%

Paid more than the asking price

7%

0%

Q9. Which statement best describes the final price that you paid for the residential proper ty you purchased most recently? Base: All respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

15


REA L ESTATE INFOR MATION SOURCES IMPORTANT SE ARCH FACTORS

R E A L E S TAT E AG E N T C O N TAC T I S C R I T I C A L I N S E A R C H I N G F O R H O M E S .

CONTACT FROM A REAL ESTATE AGENT

58%

FRIENDS OR ACQUAINTANCES

44%

REAL ESTATE BRAND WEBSITE

38%

ZILLOW

37%

INDIVIDUAL PROPERTY WEBSITE

36%

REALTOR.COM

36%

LUXURY HOME MAGAZINE ADS

36%

TRULIA

31%

YARD SIGNS

30%

VIDEOS

30%

NEWSPAPER ADS

26%

SOCIAL MEDIA

26%

Q10. How impor tant were each of the following when you searched for the home you purchased most recently? Base: All respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

16


BU YING OR SELLING WITH ASSISTA NCE FROM AGENTS IMPORTANT CHAR ACTERISTICS OF RE AL ESTATE AGENTS RESPONSIVENESS AND EXPERIENCE ARE THE MOST VALUED ASPECTS OF A REAL ESTATE AGENT

Very Important (10)

9

8

7

6

Responds to messages quickly

8.23

Experienced

8.22

Knowledge about home buying and selling process

8.19

Knowledge of home sales history in area where buying/selling

8.08

Has an excellent reputation

8.06

Created a positive impression when I first met him/her

8.00

Skilled in dealing with contracts and legal paperwork

7.78

Strong negotiator

7.73

Works for a real estate agency with an excellent reputation

7.67

Ability to be discreet

7.49

Has credentials indicating experience and knowledge in luxury housing market

7.19

Expertise in the luxury home market

6.89

Has access to a special luxury home marketing program

6.34

Works for a firm that has international connections

5.35

0%

5

20%

4

3

40%

2

Not At All Important (1) Mean

60%

80%

100%

Q14. During your most recent residential proper ty transaction (buying or selling), how impor tant were the following characteristics of the real estate agent who assisted you? Base: All Respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

17


BU Y ING OR SEL LING WITH ASSISTA NCE FROM AGENTS CONTIN UED SATISFACTION WITH RE AL ESTATE AGENTS REAL ESTATE AGENTS GET PARTICULARLY STRONG MARKS FOR EXPERIENCE AND KNOWLEDGE

Very Satisfied (10)

9

8

7

6

Experienced

8.15

Knowledge about home buying and selling process

8.14

Knowledge of home sales history in area where buying/selling

8.09

Has an excellent reputation

8.05

Responds to messages quickly

8.02

Created a positive impression when I first met him/ her

8.00

Works for a real estate agency with an excellent reputation

7.98

Skilled in dealing with contracts and legal paperwork

7.95

Ability to be discreet

7.90

Strong negotiator

7.75

Has credentials indicating experience and knowledge in luxury housing market

7.56

Expertise in the luxury home market

7.46

Has access to a special luxury home marketing program

7.31

Works for a firm that has international connections

6.90

0%

5

4

3

20%

2

40%

Not At All Satisfied (1)

60%

80%

Mean

100%

Q15. During your most recent residential proper ty transaction (buying or selling), how satisfied were you with the following characteristics of the real estate agent who assisted you? Base: All Respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

18


BU Y ING OR SEL LING WITH ASSISTA NCE FROM AGENTS CONTIN UED COMMUNICATION WITH AN AGENT PHONE AND EMAIL ARE THE MOST WIDELY PREFERRED WAYS OF COMMUNICATING WITH AGENTS

15%

16% 4 0%

Don’t like using this method Like using this method

8 5%

8 4%

6 0%

PHONE CALLS/ VOICEMAIL

EMAIL

TEX T

Q17. Which methods do you like (or dislike) for communicating with your real estate agent? Base: All Respondents (n=500)

RESPONSE TIME E X PECTED FROM AGENT

LIK ELIHOOD TO USE PRIOR AGENT AG AIN

HALF EXPECT A RESPONSE WITHIN ONE HOUR; 78% WITHIN TWO HOURS

NEARLY 2 IN 3 SATISFIED WITH AGENT ENOUGH TO USE HIM/HER AGAIN

21%

W I T H I N 15 - 6 0 M I N U T ES

17%

2 9%

37%

N OT L I K E LY AT A L L

W I T H I N 15 M I N U T ES

E X T R E M E LY L I K E LY

6%

N OT V E RY L I K E LY

9%

W I T H I N 24 HOURS

19%

2 8%

W I T H I N 1-2 HOURS

13%

S O M E W H AT L I K E LY

SAME B U S I N ES S DAY

Q18. When you send a message to your real estate agent by voicemail, email or text, how quickly do you expect a response? Base: All Respondents (n=500)

2 0%

V E RY L I K E LY

Q19. Please take a moment and think about the next time you might search for a home or residential proper ty. How likely are you to use the real estate agent you used for your most recent transaction? Base: All Respondents (n=500

COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

19


LOOK ING AHEAD : FUTURE PLA NS A ND EXPECTATIONS FU T URE PURCHASE CONSIDER ATION 54% OF HNWIS ARE PLANNING TO PURCHASE RESIDENTIAL REAL ESTATE IN THE NEXT 12 MONTHS – UP FROM 48% IN 2014

CONSIDERING PURCHASE IN THE NEXT 12 MONTHS

52%

4 6% No Yes, for investment use

10%

3 8%

2014

Yes, for personal use

18%

3 5%

2015

Q23. Are you considering purchasing additional residential real estate in the next 12 months? Base: All respondents (n=500)

RE ASONS FOR NOT CONSIDERING PURCHASE THE LEADING REASON HNWIS ARE NOT CONSIDERING A RESIDENTIAL PURCHASE IS THAT THEY ARE SIMPLY CONTENT.

I AM HAPPY WITH THE HOME(S) I HAVE NOW

87%

WANT TO REMAIN LIQUID

10%

UNSURE ABOUT THE ECONOMY

10%

OTHER INVESTMENT CATEGORIES APPEAR BETTER

8%

RESIDENTIAL REAL ESTATE VALUES HAVE NOT HIT BOTTOM

2%

WOULD NEED TO SELL PROPERTY FIRST AND PRICES ARE TOO LOW

2%

RESIDENTIAL REAL ESTATE MARKET IS DEPRESSED

1%

RESIDENTIAL REAL ESTATE IS TOO RISKY FOR AN INVESTMENT

1%

MY OVERALL PORTFOLIO IS DOWN OTHER

0% 15%

Q24. Which reasons describe why you are not considering a residential real estate purchase in the next 12 months? Base: Not considering residential proper ty purchase in next 12 months (n=232)

COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

20


LOOK ING A HEAD : FUT UR E PL A NS A N D EXPECTATIONS CONTIN UED

RE ASONS FOR CONSIDERING PURCHASE THE DESIRE FOR A GOOD INVESTMENT AND A SPECIFIC LOCATION ARE THE KEY DRIVERS FOR PURCHASING NEW REAL ESTATE

VIEW AS GOOD INVESTMENT

40%

WANT A SPECIFIC LOCATION

39%

SAFER INVESTMENT ALTERNATIVE THAN STOCK MARKET

38%

WANT ANOTHER RESIDENCE

31%

INTEREST RATES ARE LOW

31%

REAL ESTATE PRICES ARE LOW

29%

WANT TO BUILD OR BUY A “GREEN” ECO-FRIENDLY HOME

25%

LOTS OF INVENTORY TO CHOOSE FROM

23%

NEED A LARGER HOME

22%

NEED TO SHIFT MONEY FROM OTHER ASSETS

19%

WANT TO DOWNSIZE

16%

OTHER

7%

Q25. Which reasons describe why you are considering a residential real estate purchase in the next 12 months? Base: Considering residential proper ty purchase in next 12 months (n=268)

INFLUENCE OF SOCIAL MEDIA AND CUSTOMER RE VIE WS RECOMMENDATIONS AND REPUTATION ARE THE TOP DRIVERS WHEN CHOOSING AN AGENT Most Influence (10)

9

8

7

6

5

Recommendations from family/friends

4

3

2

Least Influence (1)

45%

Reputation of the company that the agent works for

44%

Customer reviews (Yelp, Angie’s List, etc.)

29%

Social media (Facebook, Instagram, Linkedin, etc.)

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q21. Suppose that you have decided to search for a real estate agent to help you in purchasing a new home or residential proper ty. How much influence would the factors listed have on your choice of your real estate agent? Please use a 1 to 10 scale, where 1 means “no influence at all” and 10 means “extremely strong influence.” Base: All Respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

21


LOOK ING A HEAD : FUT UR E PL A NS A N D EXPECTATIONS CONTIN UED

LOCATION VS. LIFEST Y LE HALF OF HNWIS SURVEYED SAY THAT THEY WILL SELECT FROM PROPERTIES THAT FIT THEIR LIFESTYLE WITHIN A SPECIFIED GEOGRAPHIC AREA RATHER THAN SEARCHING WITHOUT LIMITS BASED ON LOCATION

IN NEXT SEARCH FOR A PRIMARY RESIDENTIAL PROPERTY

4 4%

5 0% I have more freedom to choose a residence that truly fits my lifestyle and will not limit my search based on location

5 6%

I will pick the location of my next residence first and then find a property that fits my lifestyle

5 0%

2014

2015

Q22. Please indicate which statement best describes your next search for a primar y residential proper ty. Base: All respondents (n=500)

E X PECTED FIVE-Y E AR VALUE APPRECIATION 16% AVERAGE EXPECTED 5-YEAR APPRECIATION

2 3% 21% 17%

12% 9% 8%

4%

4%

2%

DECRE ASE

S TAY T H E SAME

INCREASE 0 % - 5%

INCREASE 6 % -10 %

INCREASE 11% -15%

INCREASE 16 % -2 0 %

INCREASE 21% -25%

INCREASE 2 6% - 3 0 %

INCREASE 31% +

Q26. How much do you expect the value of your primar y residence to change over the next five years? Base: All Respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

22


LOOK ING A HEAD : FUT UR E PL A NS A N D EXPECTATIONS CONTIN UED

FU T URE PURCHASER WOULD BE... MOST ANTICIPATE A U.S. RESIDENT TO PURCHASE THEIR HOME SHOULD IT BE ON THE MARKET

13%

S O M E O N E W H O C U R R E N T LY L I V ES O U T S I D E O F T H E U N I T E D STAT ES

87%

SOMEONE WHO C U R R EN T LY L I V ES I N T H E U N I T ED STAT ES

Q27. If you were to sell a home in the next year, who do you think would be most likely to buy it? Base: All Respondents (n=500)

COLDWELL BANKER PREVIEWS INTERNATIONAL速 // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR

23


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.