Wealthy buyers are choosing stability over speculation, market expert Chris Drayer writes. They’re thinking long-term and betting on real estate as a safer, smarter place to park their wealth.
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Mansions over $10 million are selling to the ultra-wealthy like hotcakes. What does this mean, and what do we say to real estate buyers and sellers?
Outside of the lifestyles of rich and famous, real estate buyers and sellers seem nervous, hesitant and on the fence. They may want to move or need to move due to a life event, but are reluctant to move forward. Agents are frequently looking for conversations to have with prospects around the current market conditions.
This is actually a great opportunity to have a conversation with your prospects who are always wondering if now is the right time to buy or sell. So this is good news for you, and here’s what to tell your buyers and sellers.
Mansion sales are booming
This week, Fortune reported what I found very surprising. Thanks to uncertainty in the market due to the volatile trade war, mansion sales are booming.
This is counterintuitive to me, and likely, many sellers. Aren’t we in a high-rate, low-affordability market? Isn’t the real estate slowdown still dragging on?
Yes, and no.
Here’s what you need to know and, more importantly, what you should be telling your buyers and sellers.
The mindset of mansion buyers matters
Why are insanely rich people investing in high-end real estate this year? These wealthy buyers are choosing stability over speculation. They’re thinking long-term and betting on real estate as a safer, smarter place to park their wealth.
Your clients should consider this mindset as well.
They may be moving for any other reason that life throws at you, but rest assured that the market has spoken, and it believes in the stability and long-term growth of real estate. If you’re going to make a move, you won’t be alone. But when to pull the trigger?
Trying to time the market is like rocket surgery
As you know, buying the dip is not easy to do. Stocks fluctuate wildly daily, but in general, the market continues upward over time. Homes are not stocks and are not as volatile. Rates may drop. Prices may fluctuate. But unless you are doing a fix and flip, this is a long-term purchase.
Nobody has a crystal ball. If a move would improve your client’s quality of life, give them more space, reduce stress, or bring them closer to family. That’s the value that matters now.
Waiting might feel safe, but inaction has a cost, too. Life’s timing matters most.
So, what should you tell your clients?
“Let’s have a conversation. We can talk about the headlines, but I want to know what’s going on in your life.”
Life conversations are where trust begins and where clarity forms. That’s how you help someone get off the fence. Use confidence and care. Talk to them about life, and be able to back up their decisions with relevant, timely information about their long-term goals.
Chris Drayer is co-founder of Revaluate, which segments consumers for marketers by propensity to move.
