wealth, real estate and the high-net …...coldwell banker previews international // wealth, real...

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


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


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


• 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%


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).


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


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


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%


REAL ESTATE AGENTS PARTICULARLY IMPORTANT TO MILLENNIALS AND GEN XERSHowimportantwascontactwitharealestateagentwhensearchingforthehomeyoupurchasedmostrecently?


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


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)


GenXers(age35-49)

Boomers(age50+)

Considering purchasing additionalresidential real estate in the next 12months

69% 50% 17%


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


E XPECT A RESPONSE WITHIN AN HOUR

ME THODS L IKED FOR COMMUNICATION WITH RE AL ESTATE AGENT


GenXers(age35-49)

Boomers(age50+)

Phone/voicemail 86% 90% 85%

Email 83% 87% 83%

Text 75% 74% 49%


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


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


APPENDIX


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%


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


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)


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


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)


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%


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


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


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


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%


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)



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



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)

wealth, real estate and the high-net …...coldwell banker previews international // wealth, real...

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