May 07, 2021
The Psychology of Luxury Home Marketing
The housing market is notoriously competitive. When you're hoping to sell to wealthier consumers, the stakes are only raised. With budget playing less of a factor in their buying decisions, you might be struggling to stand out among a tremendous number of homes. As a marketer, how can you position your homes and communities to appeal to this upscale buyer?
When money isn't an issue, time becomes one's most valuable asset. As a result, it's important to clearly and succinctly explain the features of your property in order to connect with prospective buyers. Although luxury homes tend to take longer to sell — 62 days compared to 32 for non-luxury — it's important to begin communicating value as early as possible.
To win in the luxury market, you need to differentiate yourself quicker than you ever had and truly get inside the mind of luxury buyers. If it sounds like an intimidating challenge, our team is here to help you stand out among your competition. Milesbrand has had the privilege of working with luxury home builders and developers for years, and we're ready to help you showcase your homes and communities to attract those high-end home buyers.
More Than a Home: What is Luxury?
No matter the type of home, purchasing a new property is a huge and exciting decision. What makes this milestone a "luxury" purchase for some, and a normal purchase for others?
The connotation of the word "luxury" can mean something very different to different buyers. Your standard of living evolves as you move up in class, meaning that a luxury splurge for upper-middle-class buyers would seem like the standard to those at the top tier. In general, however, certain factors like amenities, price point, location, and features within the home are considered in order to earn a home the "luxury” designation.
As a marketer, it might be frustrating to hear that there is no clear standard for crafting a luxury product and buying experience. Fortunately, there's one key element that remains consistent for all luxury shoppers: the psychology behind their purchases. Understanding the psychological factors that motivate the spending of your key buyers will allow you to reach them more effectively than ever.
Why Do People Buy Luxury Homes?
Buying a Dream
Throughout our lives, humans do a lot of hard work. From getting an education, developing in their career, and tireless saving, consumers pour blood, sweat, and tears into developing their livelihoods.
Unfortunately, blood, sweat, and tears aren't a very tangible representation of all of that determination. In pursuit of fulfillment, many turn to luxurious homes. These large purchases are often a way that people confirm that they've "made it" and accomplished a long-standing dream.
Luxury homes also often come with factors that help to justify all the hard work consumers have done. Strong communities crafted through placemaking often feel like the ultimate reward. In the end, we all just want to be happy and comfortable. Ties to your neighbors and town help to make individuals feel well-established. The amenities that typically accompany luxury homes also contribute to a comfortable and rewarding environment.
Status and Image
It's no secret that luxury purchases double as status symbols. Things like fancy watches, cars, and especially homes can serve a practical purpose while reaffirming and contributing to the desired lifestyle.
The knowledge of this fact will play a key role in your marketing efforts. Part of a luxury home's value is the connections and the prestige it can bring. It can reinforce the idea of one's success in a very visible way and is a worthy reward for those who have worked to afford it.
Luxury products tend to cost more because they are, as you would expect, incredibly luxurious. However, the strongest marketers find ways to convey value outside of the physical aspects.
Your homes can be made more desirable when you emphasize the exclusivity of the property. This is especially relevant for work in the custom market. It's certainly appealing to be able to tell a buyer that, not only can they own this beautiful home, but they can own the only one of its kind.
Luxury Home Marketing
As you develop your marketing tactics, all of these psychological elements should be kept at the forefront of your mind. While it's important to remember that each consumer is unique and comes with their own motivations, it is safe to assume that the above benefits are at the top of their mind.
Effective marketing appeals to a very specific audience at each touchpoint. In this case, your intended audience is upper-class shoppers. This means that even before you are showing images of the home, your marketing should come with its own luxurious flair.
If someone is willing to spend the big bucks on your property, they'll be expecting quality and accommodation at every turn. This means that unparalleled customer service and experience are as crucial as amenities like a sauna or an in-ground pool.
Your first touchpoint with luxury consumers may be digital. Display ads are a great way to target and reach a very specific audience. However, even as you form more widespread campaigns, it's crucial that your communications come across as one-on-one.
For consumers to invest in your property, you'll have to invest in them. Be ready to form a personalized relationship and make an extra effort to keep in contact. The pay-off of winning over a customer in this very competitive market will make your efforts well worth it.
Your top-notch properties deserve top-notch marketing expertise. Throughout our years of helping developers reach their consumers, we’ve established ourselves as expert luxury real estate marketers. This was all made possible by our partnerships with amazing homes and communities like yours. Luxury branding is one of our favorite art forms, and we're ready to collaborate with you!
Your consumers are used to seeing the best of the best. If you need help making your properties stand out amongst the competition, you've come to the right place. Between our expertise and your exclusive homes, we'll help to introduce families into their new happily ever after. Contact us today to learn more.