The RE/MAX Luxury Homeowner Profile offers additional insight into the professions, lifestyles and financial wherewithal of luxury home clientele:


Financial Clout:

Financial clout is the name of the home-buying game among luxury house hunters. Evidently not as dependent on lower interest rates to make the move, nearly one-third (31.5%) of buyers paid cash to purchase their one million dollar plus home. Of those who choose to take on a mortgage, 17% placed a down payment that was 50% or more than the price of their new luxury home.


The survey also discovered that despite paying a big price tag for top-of-the-line homes and amenities, 41% of these luxury homebuyers still plan on investing more money in the home by doing major renovations. In terms of negotiating style, the top luxury homebuyer's tactic was described as "close to the vest, minimum divulgence" (63%), versus "hardball" (24%) and "money is no object, I just want it" (13%). Additionally, it seems these homebuyers use these negotiation tactics successfully to get the best price as the survey indicated that only six percent actually pay over the asking price.


Career Paths Toward Luxury Home Pathways

While business executives of large corporations are the number one profession among luxury homeowners, entrepreneurs who own their own businesses are at a close second. That could be one reason why sales associates define the wealth of their rich clientele as "new money" (68%), versus " old" or " inherited money" (11%). Other top professions (in order) of buyers of million dollar plus homes were: doctor, , lawyer, stockbroker, actor, musician and inventor.


Demographics :

Two-thirds of these homeowners are from the " baby boom" generation (between the ages of 35 and 55), but 28% are moving into luxury properties as they approach their retirement years (56 years and older). Only 4% of luxury homeowners are under 34 years of age. Eighty-eight percent of luxury home purchasers are married, of which 55% have children. About 1 out of 10 are single (6% men; 5% women). Seven out of 10 luxury homebuyers (72%) come from the same state where they buy their new home, of which 55% are from the same city. Twenty-four percent come from out of state, while 3% hail from another country.

At Home and In Style:

It is understandable that these luxury homebuyers are looking for particular lifestyle items and amenities to enjoy - in the comfort of their own home. Whether cooking for themselves or employing their own chefs, designer kitchens are the number one priority for luxury homeowners. Following kitchens, the top five most requested amenities (in order) are: media/entertainment room with theater-style seating, wine cellar, tennis courts/basketball courts, indoor pool and ballroom/cigar room.
Which proverb is true: " Less is more," or " bigger is better"? When it comes to number of rooms and square footage, it seems that size is relative:

Average number of bedrooms a luxury home customer requests when looking to buy a new home (In order of ranking):
 

Rank	# of Bedrooms	Percentage
#1	4 to 5 bedrooms	89%
#2	3 or less bedrooms	5%
#3	6 to 8 bedrooms	4%
#4	9 and up bedrooms	2%

Total square footage averages within the luxury homes that were sold in the past year through the RE/MAX sales associates polled (In order of ranking):
 

Rank	Square Footage	Percentage
#1	4,000 to 6,000	49%
#2	2,400 to 3,999	37%
#3	Over 6,000	12%
#4	Under 2,500	2%

The RE/MAX Luxury Home Buyer Survey was conducted by Real Estate Corporation in May 2003 over the Internet on Zoomerang.com. It polled nearly 200 RE/MAX Previews International® sales associates in the U.S. who have sold homes valued at $1 million dollars or more in the past 12 months.

The RE/MAX Previews International® system has been a world leader in the marketing of luxury homes since 1933. This luxury home marketing program has been exclusive to RE/MAX® affiliates since 1994. In 2002, RE/MAX® sales associates were involved in the sale of 11,158 properties priced at a million dollars or more with a total sales volume of $18.9 billion in the $1 million and above price range.