WEALTHY PREFER EXPERT
REAL ESTATE AGENTS

Choosing representation not based on friendships, similar lifestyles When it comes to real estate agents acquiring superrich clients, it isn't a question of whom you know, but what you know that matters most, according to findings of new research released last week by Unique Homes magazine and The Institute for Luxury Home Marketing.

When these affluent individuals who own at least one home valued at $2.5 million or more were asked to rank the importance of different characteristics in the choice of a real estate agent to help in the buying or selling process, "expertise in the luxury home market" topped the list ranked "very important." This was followed closely by "knowledge about home-buying and -selling process."

Also valued by the superrich were agents with "ability to be discreet" (36 percent) and those who've earned "a designation indicating experience and knowledge in the luxury housing market" (34 percent).

At the bottom of the list (0 percent) were "someone who is a friend" and "someone who lives the same lifestyle," indicating that real estate knowledge and skills were important agent selection factors while choices were not based on friendships or agents' lifestyles.

In descending order, based on the percentage of respondents ranking the trait as "very important" in their decision-making process, the different characteristics broke out as follows:

1. Expertise in the luxury home market (70 percent)
2. Knowledge about home-buying and -selling process (67 percent)
3. Previous experience working with the agent (46 percent)
4. Resale home product knowledge (39 percent)
5. Ability to be discreet (36 percent)
6. Has a designation indicating experience and knowledge in the luxury housing market (34 percent)
7. Best marketing plan (28 percent)
8. Best listing presentation (23 percent)
9. Ability to use the Internet as a resource and communicate via e-mail (22 percent)
10. Referred by family or friend (14 percent)
11. New home product knowledge (14 percent)
12. Mortgage financing knowledge and lender contacts (14 percent)
13. Someone who lives the same lifestyle (0 percent)
14. Someone who is a friend (0 percent)

The study focused on the demographics of superrich households, the type of home and amenities desired by the rich home buyer, their home-buying process, the real estate brands and luxury publications they associate with the luxury home market, and their criteria for selecting a real estate agent. The research also looked at lifestyle and attitudes of the rich as well as at the influence of the economy on their recent expenditures. The study was a mail and online survey of 4,000 households owning at least one home valued at $2.5 million.
(Inman News)

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