WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR SURVEY AND INSIGHTS INTO PREFERENCES AND BEHAVIOR COLDWELL BANKER PREVIEWS INTERNATIONAL ® AND IPSOS MEDIACT
WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR SURVEY AND INSIGHTS INTO PREFERENCES AND BEHAVIOR
COLDWELL BANKER PREVIEWS INTERNATIONAL® AND IPSOS MEDIACT
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 2
TABLE OF CONTENTS
Objective and Methodology
Key Findings
High Net Worth and Generational Differences
Appendix
Home Ownership Profile
Most Recent Residential Property Purchase
Real Estate Information Sources
Buying or Selling with Assistance from Agents
Looking Ahead: Future Plans and Expectations
03
04
07
10
11
13
16
17
20
Survey in partnership with
Ipsos MediaCT
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 3
OBJECTIVE AND 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.
41% of the survey sample had $10 million or more in net worth – reflecting the top 0.6% of U.S. population*
HIGH-NET-WORTH INDIVIDUAL DEFINITION
Age: 21+ years old | Annual household income: $200,000+ | Net worth: $5 million+
HIGH-NET-WORTH INDIVIDUALS REFLECT
1.8 MILLION HOUSEHOLDS
TOP 1.5% OF THE U.S. POPULATION*
OR
ROUGHLY
Sample Profile2013 SCF
BenchmarkSurvey Data(unweighted)
Survey Data(weighted)
Gender ratio (M:F) n/a 55%:45% 56%:44%
Age:
<65 / 65+ 61% / 39% 81% / 19% 61% / 39%
Household Income:
$200K-$499K
$500K-$999K
$1M or more
38%
30%
32%
52%
8%
40%
38%
30%
32%
Net Worth:
$5 - $9.9M
$10M or more
59%
41%
64%
36%
58%
42%
AVERAGE AGE 53
56% MALE
AVERAGE NET WORTH $8.5M
AVERAGE HOUSEHOLD INCOME: $609K
*According to the 2013 Survey of Consumer Finances
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 4
RESIDENTIAL REAL ESTATE CENTRAL TO LIVES AND FINANCES
“MODERN” AMENITIES RISING —GREEN, SMART, OPEN
KEY FINDINGS
PURCHASING PROFILE
38%
NET WORTH IN RESIDENTIAL REAL ESTATEAVERAGE NUMBER OF HOMES OWNED
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)
2.1
Compared to three years ago, how (if at all) has the importance of these amenities changed for you?
More importantLess important
-3% 43%
41%-6%
36%-8%
36%-4%
34%-11%
32%-7%
30%-9%
READY-TO-MOVE-INTO (NOT A FIXER-UPPER)
HOME GYM
FULLY AUTOMATED/WIRED ENVIRONMENT
HOME THEATER
GREEN OR LEED CERTIFIED
OPEN FLOOR PLAN
SAFE ROOM
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 5
• 72%:Thesedays,workingwitharealestateagenttobuyorsellahomeismoreimportantthaneverbefore
• 64%:Iwouldneverconsidersellingahomewithoutusingarealestateagent• 63%:Iwouldneverconsiderbuyingahomewithoutusingarealestateagent• 58% say contactwitharealestateagentisextremelyorveryimportantwhenchoosingahome—
#1,aheadoffriends,familyanddigitalresources
KEY FINDINGS
8 IN 10 (AND RISING) USE REAL ESTATE AGENTS FOR BUYING, SELLING
REAL ESTATE AGENTS A CRUCIAL RESOURCE
Made their most recent purchase with a real estate agent (up from 77%)
Likely to use their real estate agent again
Made their most recent sale with a real estate agent (up from 77%)
Find it very comforting to work with a real estate agent who is associated with
respected real estate company
82% 81%
92%76%
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 6
KEY FINDINGS
HNWIS EXPECT RESPONSIVE AGENTS
OVER HALF ANTICIPATING A REAL ESTATE PURCHASE
RESPONDS QUICKLY TO MY MESSAGES
EXPERIENCED
KNOWLEDGE OF HOME BUYING AND SELLING PROCESS
KNOWLEDGE OF HOME SALES HISTORY IN AREA WHERE BUYING/SELLING
HAS AN EXCELLENT REPUTATION
CREATED A POSITIVE IMPRESSION WHEN I FIRST MET HIM/HER
8.23
8.22
8.19
8.08
8.06
8.00
NOTE: SELECTED ITEMS SHOWN – FULL L IST OF ITEMS IN THE APPENDIX .
RESPONSE EXPECTATIONS HIGH
ABOUT HALFexpectaresponsewithinonehourABOUT TWO-THIRDSwithintwohoursVIRTUALLY ALLwithinonebusinessday
MOST IMPORTANT CHAR ACTERIST ICS OF RE AL ESTATE AGENTS
(AVER AGE ON 10 -POINT SCALE; TOP 6 SHOWN)
IT’S LESS ABOUT CHANNEL
85%likephonecalls84%likeemail60%liketexts
54% 48% from 2014PLANNINGTOPURCHASERESIDENTIALREALESTATEINTHENEXT12MONTHS
• 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.
• 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.
• 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 7
HIGH NET WORTH AND GENERATIONAL DIFFERENCES
BOOMERS ARE THE MOST PREVALENT (AND MOST DIVERSIFIED) GENERATION OF HNWIS
KEEP IN MIND THAT MILLENNIALS MAY NOT BE THE “PRIMARY BRE ADWINNERS”
CONTRIBUT ING TO THE HNW STATUS OF THESE HOUSEHOLDS
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
PercentageofHNWpopulation 26% 31% 43%
Averagehouseholdincome $683K $703K $544K
Averagenetworth $9.7M $9.2M $8.1M
%ofnetworthinresidentialrealestate 54% 54% 26%
MILLENNIALS ARE MOST RELIANT ON AGENTS, AND MOST COMFORTED BY ASSOCIATION WITH A RESPECTED REAL ESTATE COMPANY
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
Ifinditverycomfortingtoworkwitharealestateagentwhoisassociatedwitharespectedrealestatecompany
99% 90% 91%
Thesedays,workingwitharealestateagenttobuyorsellahomeismoreimportantthaneverbefore
93% 83% 60%
Iwouldneverconsiderbuyingahomewithoutusingarealestateagent 90% 71% 50%
Iwouldneverconsidersellingahomewithoutusingarealestateagent 86% 73% 53%
BOOMERS DOWNSIZING, AND MOST LIKELY TO HAVE TRANSACTED WITHOUT AN AGENT
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
Amountpaidforthehomeorresidentialpropertyyoupurchasedmostrecently $4.958M $5.239M $1.553M
Purchasedyourmostrecentresidentialproperty with the assistance of a realestateagent
94% 90% 75%
Sold most recent residential propertywith the assistance of a real estateagent
79% 70% 63%
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 8
REAL ESTATE AGENTS PARTICULARLY IMPORTANT TO MILLENNIALS AND GEN XERSHowimportantwascontactwitharealestateagentwhensearchingforthehomeyoupurchasedmostrecently?
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
Percentageextremely/veryimportant 76% 70% 47%
Rankvs.otheritemsonlist Clear#1Tiedfor#1
withrealestatebrandwebsite
Clear#1
SOCIAL MEDIA AND CUSTOMER REVIEWS ARE PARTICULARLY IMPORTANT TO MILLENNIALS
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
Reputationofthecompanytheagentworksfor 77% 66% 52%
Recommendationsfromfamily/friends 75% 69% 48%
Customerreviews(Yelp,Angie’sList,etc.) 71% 61% 22%
Socialmedia(Facebook,Instagram,LinkedIn,etc.) 61% 47% 7%
IMPORTANCE WHEN SE ARCHING FOR A RE AL ESTATE AGENT
(8 , 9 OR 10 ON A 10 -POINT SCALE )
MILLENNIALS MOST LIKELY TO BUY SOON, AND BASED ON LIFESTYLE (RATHER THAN LOCATION)
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
Considering purchasing additionalresidential real estate in the next 12months
69% 50% 17%
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
I am free to choose a residence thattrulyfitsmylifestyleandwillnotlimitmysearchbasedonlocation
85% 69% 29%
I will pick the location of my nextresidencefirst,andthenfindapropertythatfitsmylifestyle 15% 31% 71%
WHICH STATEMENT BEST DESCRIBES YOUR NE X T SE ARCH FOR A
PR IMARY RESIDENTIAL PROPERT Y?
HIGH NET WORTH AND GENERATIONAL DIFFERENCES CONTINUED
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 9
E XPECT A RESPONSE WITHIN AN HOUR
ME THODS L IKED FOR COMMUNICATION WITH RE AL ESTATE AGENT
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
Phone/voicemail 86% 90% 85%
Email 83% 87% 83%
Text 75% 74% 49%
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
Voicemail 46% 65% 38%
Email 39% 50% 29%
Text 51% 51% 47%
GEN XERS HAVE THE HIGHEST EXPECTATIONS FOR QUICK RESPONSES; HALF OF ALL GENERATIONS EXPECT RESPONSES TO TEXT WITHIN AN HOUR
MILLENNIALS USE A WIDER RANGE OF CRITERIA WHEN CHOOSING A REAL ESTATE AGENT
E X TREMELY/ VERY IMPORTANT WHEN SELECTING A RE AL ESTATE AGENT
MILLENNIALS WERE ALSO MORE
SAT ISF IED WITH THE RE AL ESTATE
AGENTS THE Y USED ON E ACH OF
THESE D IMENSIONS
Millennials(age18-34)
GenXers(age35-49)
Boomers(age50+)
CreatedapositiveimpressionwhenIfirstmethim/her 72% 59% 48%
Experienced 70% 57% 60%
Skilledindealingwithcontractsandlegalpaperwork 70% 63% 43%
Hascredentialsindicatingexperienceandknowledgeintheluxuryhousingmarket 70% 61% 29%
Respondsquicklytomymessages 69% 61% 55%
KnowledgeofhomesaleshistoryintheareawhereIwasbuying/selling 69% 62% 50%
Hasanexcellentreputation 64% 55% 48%
Strongnegotiator 63% 51% 47%
Knowledgeabouthomebuyingandsellingprocess 62% 62% 55%
Expertiseintheluxuryhomemarket 60% 54% 28%
Hasaccesstoaspecialluxuryhomemarketingprogram 56% 52% 19%
Worksforarealestateagencywithanexcellentreputation 55% 56% 44%
Abilitytobediscreet 49% 51% 37%
Worksforafirmthathasinternationalconnections 47% 42% 12%
HIGH HET WORTH AND GENERATIONAL DIFFERENCES CONTINUED
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 10
APPENDIX
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 11
HOME OWNERSHIP PROFILE
40%39%
31%
4%4%
35%
15%12%
7%5%
2%5%
1 2 3 4 5 MORE THAN 5
2014 2015KE Y:
Q1. How many homes do you currently own and use as personal residences or vacation homes?Base: All respondents (n=500)
ON AVER AGE, U.S. HNWIS OWN 2.1 HOMES THAT ARE USED FOR
PERSONAL RESIDENCES OR VACATION HOMES
NUMBER OF PROPERTIES OWNED
Q1a. What percent of your overall net worth is in residential real estate?Base: All respondents (n=500)
PERCENTAGE OF NET WORTH IN REAL ESTATE
ON AVER AGE, 38% OF NE T WORTH IS IN RESIDENTIAL RE AL ESTATE
13%40%-59%
40%LESS THAN 20%
10%60% - 79%
16%80% AND ABOVE
22%20% - 39%
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 12
Q3. Compared to three years ago, how (if at al l) has the importance of these amenities changed for you? Base: All respondents (n=500)
TRENDS IN DESIRED AMENITIES
More importantLess important
3% 43%
41%
36%
36%
34%
32%
30%
30%
28%
28%
27%
26%
26%
25%
22%
21%
18%
6%
8%
4%
11%
7%
9%
15%
14%
10%
11%
11%
10%
16%
12%
18%
16%
Ready-to-move-into (NOT a fixer-upper)
Fully automated/wired home environment
Green or LEED certified
Open floor plan
Home gym
Home theater
Safe room
Four or more garages
Wine cellar or wine room
Outdoor kitchen
Pool
Space to display art collection
Separate guest house
Deep-water dock
Separate catering kitchen
Tennis court or other sport court
Staff quarters
HOME OWNERSHIP PROFILE CONTINUED
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 13
MOST RECENT RESIDENTIAL PROPERTY PURCHASE
Q5. Now we would l ike to ask some questions about the home or residential property that you purchased most recently. How many years ago did you purchase it? Base: All respondents (n=500)
43% HAVE PURCHASED REAL ESTATE IN THE LAST FIVE YEARS
7%LESS THAN 1 YEAR
15%20+ YEARS
17%3-4 YEARS
17%10-19 YEARS
19%1-2 YEARS
25%5-9 YEARS
Q8. Approximately how much did you pay for the home or residential property you purchased most recently?Base: All respondents (n=500)
AMOUNT PAID FOR MOST RECENTLY PURCHASED PROPERTY
2014 201525%
21%
17%
19%
17%
10% 10%
13%
4% 4% 4%3%
5% 5%5% 5%
7% 7%
9%9%
UNDER$500,000
$500,000 TO
<$1M
$1M-$1.4M
$1.5M-$1.9M
$2M-$2.9M
$3M-$3.9M
$4M-$4.9M
$5M-$6.9M
$7M-$9.9M
$10M OR
MORE
THE MEDIAN PURCHASE PRICE PA ID BY U.S. HNWIS FOR THEIR MOST RECENT PROPERT Y IS $1.3M
(DOWN FROM $1.8M)
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 14
CASH PURCHASE?
MOST RECENT RESIDENTIAL PROPERTY PURCHASE CONTINUED
Q6. Which statement best describes how you paid for the home or residential property you purchased most recently?Base: All respondents (n=500)
43%TOOK OUT A HOME LOAN OR MORTGAGE
FOR AT LEAST SOME OF IT
57%PAID ENTIRELY IN CASH
A MAJORIT Y OF U.S. HNWIS REPORT PAY ING IN CASH FOR THEIR MOST RECENTLY
PURCHASED HOME OR RESIDENTIAL PROPERT Y
Q7. Thinking again about the residential property you purchased most recently, what percent of the home price did you pay for with a loan or mortgage?Base: Took out Home Loan or Mortgage For Home or Residential Property Payment (n=222)
PERCENTAGE OF HOME PAID WITH LOAN
33%HOME LOAN26% - 50%
18%HOME LOAN
1% - 25%
14%HOME LOAN76% - 100% 36%
HOME LOAN51%- 75%
WHEN A MORTGAGE IS TAKEN BY HNWIS, IT IS T YPICALLY
FOR HALF OF THE PURCHASE PRICE
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 15
FINAL PRICE OF HOME
MOST RECENT RESIDENTIAL PROPERTY PURCHASE CONTINUED
THE MAJORIT Y OF HOME PURCHASES WERE MADE AT LESS THAN THE ASK ING PRICE
36%PAID ASKING
PRICE
6%PAID MORE THAN
ASKING PRICE
58%PAID BELOW
ASKING PRICE
RETAINING A REAL ESTATE AGENT OFTEN RESULTS IN PAYING BELOW ASKING PRICE.
UsedRealEstateAgent
toBuy
DidnotuseRealEstateAgenttoBuy
Paidbelowtheaskingprice 60% 49%
Paidtheaskingprice 33% 51%
Paidmorethantheaskingprice 7% 0%
Q9. Which statement best describes the f inal price that you paid for the residential property you purchased most recently?Base: All respondents (n=500)
Q9. Which statement best describes the f inal price that you paid for the residential property you purchased most recently?Base: All respondents (n=500)
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 16
REAL ESTATE INFORMATION SOURCES
IMPORTANT SEARCH FACTORS
Q10. How important were each of the fol lowing when you searched for the home you purchased most recently? Base: All respondents (n=500)
RE AL ESTATE AGENT CONTACT IS CRIT ICAL IN SE ARCHING FOR HOMES.
CONTACT FROM A REAL ESTATE AGENT
FRIENDS OR ACQUAINTANCES
REAL ESTATE BRAND WEBSITE
ZILLOW
INDIVIDUAL PROPERTY WEBSITE
REALTOR.COM
LUXURY HOME MAGAZINE ADS
TRULIA
YARD SIGNS
VIDEOS
NEWSPAPER ADS
SOCIAL MEDIA
36%
36%
36%
37%
38%
58%
30%
30%
31%
44%
26%
26%
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 17
BUYING OR SELLING WITH ASSISTANCE FROM AGENTS
RESPONSIVENESS AND EXPERIENCE ARE THE MOST VALUED ASPECTS OF A REAL ESTATE AGENT
IMPORTANT CHARACTERISTICS OF REAL ESTATE AGENTS
Q14. During your most recent residential property transaction (buying or sell ing), how important were the following characteristics of the real estate agent who assisted you? Base: All Respondents (n=500)
Very Important (10) 9 8 7 6 5 4 3 2 Not At All Important (1) Mean
Responds to messages quickly
Experienced
Knowledge about home buying and selling process
Knowledge of home sales history in area where buying/selling
Has an excellent reputation
Created a positive impression when I first met him/her
Skilled in dealing with contracts and legal paperwork
Has credentials indicating experience and knowledge in luxury housing market
Strong negotiator
Expertise in the luxury home market
Works for a real estate agency with an excellent reputation
Has access to a special luxury home marketing program
Ability to be discreet
Works for a firm that has international connections
0% 20% 40% 60% 80% 100%
8.23
8.22
8.19
8.08
8.06
8.00
7.78
7.19
7.73
6.89
7.67
6.34
7.49
5.35
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 18
BUYING OR SELLING WITH ASSISTANCE FROM AGENTS CONTINUED
REAL ESTATE AGENTS GET PARTICULARLY STRONG MARKS FOR EXPERIENCE AND KNOWLEDGE
SATISFACTION WITH REAL ESTATE AGENTS
Q15. During your most recent residential property transaction (buying or sell ing), how satisf ied were you with the following characteristics of the real estate agent who assisted you? Base: All Respondents (n=500)
Very Satisfied (10) 9 8 7 6 5 4 3 2 Not At All Satisfied (1) Mean
Responds to messages quickly
Experienced
Knowledge about home buying and selling process
Knowledge of home sales history in area where buying/selling
Has an excellent reputation
Created a positive impression when I first met him/her
Skilled in dealing with contracts and legal paperwork
Has credentials indicating experience and knowledge in luxury housing market
Strong negotiator
Expertise in the luxury home market
Works for a real estate agency with an excellent reputation
Has access to a special luxury home marketing program
Ability to be discreet
Works for a firm that has international connections
0% 20% 40% 60% 80% 100%
8.15
8.14
8.09
8.05
8.02
8.00
7.98
7.56
7.95
7.46
7.90
7.31
7.75
6.90
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 19
BUYING OR SELLING WITH ASSISTANCE FROM AGENTS CONTINUED
COMMUNICATION WITH AN AGENT
PHONE AND EMAIL ARE THE MOST WIDELY PREFERRED WAYS OF COMMUNICATING
WITH AGENTS
Q17. Which methods do you like (or dislike) for communicating with your real estate agent?Base: All Respondents (n=500)
15%
85% 84%
16%
60%
40%
PHONE CALLS/VOICEMAIL
EMAIL TEXT
Like using this method
Don’t like using this method
RESPONSE TIME EXPECTED FROM AGENT
HALF EXPECT A RESPONSE WITHIN ONE HOUR; 78% WITHIN TWO HOURS
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)
Q19. Please take a moment and think about the next time you might search for a home or residential property. How likely are you to use the real estate agent you used for your most recent transaction?Base: All Respondents (n=500
28%WITHIN 1-2
HOURS
21%WITHIN 15-60
MINUTES
13%SAME
BUSINESS DAY
9%WITHIN 24
HOURS
29%WITHIN 15 MINUTES
LIKELIHOOD TO USE PRIOR AGENT AGAIN
NEARLY 2 IN 3 SATISFIED WITH AGENT ENOUGH TO USE HIM/HER AGAIN
6%NOT VERY
L IKELY
17%NOT L IKELY
AT ALL
19%SOMEWHAT
L IKELY
20%VERY L IKELY
37%E X TREMELY
L IKELY
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 20
Q23. Are you considering purchasing additional residential real estate in the next 12 months?Base: All respondents (n=500)
LOOKING AHEAD: FUTURE PLANS AND EXPECTATIONS
FUTURE PURCHASE CONSIDERATION
REASONS FOR NOT CONSIDERING PURCHASE
54% OF HNWIS ARE PLANNING TO PURCHASE RESIDENTIAL REAL ESTATE IN
THE NEXT 12 MONTHS – UP FROM 48% IN 2014
THE LEADING REASON HNWIS ARE NOT CONSIDERING A RESIDENTIAL PURCHASE IS THAT
THEY ARE SIMPLY CONTENT.
CONSIDERING PURCHASE IN THE NEXT 12 MONTHS
Q24. Which reasons describe why you are not considering a residential real estate purchase in the next 12 months?Base: Not considering residential property purchase in next 12 months (n=232)
52%
38%35%
18%
46%
10%
2014 2015
Yes, for personal use
Yes, for investment use
No
I AM HAPPY WITH THE HOME(S) I HAVE NOW
WANT TO REMAIN LIQUID
UNSURE ABOUT THE ECONOMY
OTHER INVESTMENT CATEGORIES APPEAR BETTER
RESIDENTIAL REAL ESTATE VALUES HAVE NOT HIT BOTTOM
WOULD NEED TO SELL PROPERTY FIRST AND PRICES ARE TOO LOW
RESIDENTIAL REAL ESTATE MARKET IS DEPRESSED
RESIDENTIAL REAL ESTATE IS TOO RISKY FOR AN INVESTMENT
MY OVERALL PORTFOLIO IS DOWN
OTHER
87%
10%
15%
10%
8%
2%
2%
1%
1%
0%
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 21
LOOKING AHEAD: FUTURE PLANS AND EXPECTATIONS CONTINUED
REASONS FOR CONSIDERING PURCHASE
THE DESIRE FOR A GOOD INVESTMENT AND A SPECIFIC LOCATION ARE THE KEY DRIVERS FOR
PURCHASING NEW REAL ESTATE
Q25. Which reasons describe why you are considering a residential real estate purchase in the next 12 months?Base: Considering residential property purchase in next 12 months (n=268)
VIEW AS GOOD INVESTMENT
WANT A SPECIFIC LOCATION
SAFER INVESTMENT ALTERNATIVE THAN STOCK MARKET
WANT ANOTHER RESIDENCE
INTEREST RATES ARE LOW
REAL ESTATE PRICES ARE LOW
WANT TO BUILD OR BUY A “GREEN” ECO-FRIENDLY HOME
LOTS OF INVENTORY TO CHOOSE FROM
NEED A LARGER HOME
WANT TO DOWNSIZE
NEED TO SHIFT MONEY FROM OTHER ASSETS
OTHER
40%
31%
22%
39%
29%
19%
38%
25%
23%
16%
7%
31%
INFLUENCE OF SOCIAL MEDIA AND CUSTOMER REVIEWS
Q21. Suppose that you have decided to search for a real estate agent to help you in purchasing a new home or residential property. How much inf luence would the factors l isted have on your choice of your real estate agent? Please use a 1 to 10 scale, where 1 means “no inf luence at all” and 10 means “extremely strong inf luence.”Base: All Respondents (n=500)
Reputation of the company that the agent works for
Recommendations from family/friends
Customer reviews (Yelp, Angie’s List, etc.)
Social media (Facebook, Instagram, Linkedin, etc.)
0% 10% 70%40%20%
44%
45%
29%
20%
80%50%30% 90% 100%60%
RECOMMENDATIONS AND REPUTATION ARE THE TOP DRIVERS WHEN CHOOSING AN AGENT
Most Influence (10) 9 8 7 6 5 4 3 2 Least Influence (1)
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 22
LOOKING AHEAD: FUTURE PLANS AND EXPECTATIONS CONTINUED
LOCATION VS. LIFESTYLE
EXPECTED FIVE-YEAR VALUE APPRECIATION
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
16% AVERAGE EXPECTED 5-YEAR APPRECIATION
Q22. Please indicate which statement best describes your next search for a primary residential property.Base: All respondents (n=500)
Q26. How much do you expect the value of your primary residence to change over the next f ive years?Base: All Respondents (n=500)
44%
56%50%
50%
2014 2015
I will pick the location of my next residence first and then find a property that fits my lifestyle
I have more freedom to choose a residence that truly fits my lifestyle and will not limit my search based on location
12%
2%
DECRE ASE
8%
INCRE ASE0%-5%
21%
INCRE ASE6%-10%
17%
INCRE ASE11%-15%
23%
INCRE ASE16%-20%
9%
INCRE ASE21%-25%
4%
INCRE ASE26%-30%
INCRE ASE31%+
4%
STAY THE SAME
COLDWELL BANKER PREVIEWS INTERNATIONAL® // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 23
LOOKING AHEAD: FUTURE PLANS AND EXPECTATIONS CONTINUED
13%SOMEONE WHO CURRENTLY
L IVES OUTSIDE OF THE UNITED STATES
87%SOMEONE WHO
CURRENTLY L IVES IN THE UNITED STATES
FUTURE PURCHASER WOULD BE...
MOST ANTICIPATE A U.S. RESIDENT TO PURCHASE THEIR HOME SHOULD IT BE ON THE MARKET
Q27. If you were to sell a home in the next year, who do you think would be most l ikely to buy it?Base: All Respondents (n=500)