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%
83%
87%
83%
Text
75%
74%
49%
Millennials (age 18-34)
Gen Xers (age 35-49)
Boomers (age 50+)
Voicemail
46%
65%
38%
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
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