Luxury real estate for those Who Live In Luxury: Ultra-High Net Worth Clients

Written by Phil Kaminowitz | Mar 8, 2018 8:39:00 PM

While a small fraction of ultra-high net worth (UHNW) clients are highly visible— NBA stars, Hollywood actors, and socialites—you wouldn’t recognize most UHNW individuals walking down the street. They’re people that built their own companies, have links to monarchic families in other countries, or otherwise inherited their wealth and collect profit from a diverse portfolio of investments. Oftentimes, they won’t appear as high-salaried individuals—their wealth is in stock options, benefits, bonuses, and assets. Especially within real estate, most UHNW individuals are people you’ve never heard of.

A lot of the time, when dealing with UHNW clients, you’re not even dealing with the clients themselves. Most UHNW individuals have their own private offices that take care of their affairs until the very end of the purchasing process.

What do they want in real estate?

This is the age old problem of any luxury business—how do you draft a sales pitch tailored for someone who already has everything money can buy?

Many UHNW clients, who are purchasing their third, fourth, or fifteenth property will be after something rarer than simply a high-valued home with luxurious amenities. They’re after the best quality materials—stone from a castle in Scotland or marble quarried from Carrara, Italy. Of course, these are just examples; it’s up to you to identify what are the preferred esoteric materials of your specific client.

UHNW individuals are also drawn to houses that have unique histories behind them. Was the home previously inhabited by their favorite musician? Was it built by a starchitect like Frank Lloyd Wright, Zaha Hadid, or Daniel Libeskind? What about a star interior designer? The ultra-rich will always be interested in lifestyle properties that provide access to a luxurious leisurely activities.

How do you advertise to them?

The best way to target the UHNW demographic is through a large-scale impressions campaign. Through Google and Facebook, you can selectively target advertisements by income. Google’s system works through a tiered percentage model while Facebook allows income tiers up to $2 million/year. Another strategy to target UHNW individuals is to selectively place digital ads according to zip code.

Another strategy to reach UHNW clients is through lifestyle targeting. Digital advertising tools allow you to reach clients who have previously searched for private jets, super yachts, or luxury jewelry. These clients are most likely your target demographic.

In terms of print advertising, place ads in publications frequented by UHNW individuals. The Wall Street Journal and Financial Times are staples. More niche publications include Robb Report, Architectural Digest (AD), Bloomberg Markets, Superyacht World, and Ocean Home.

UHNW clients are tough to speak about in general. When someone has access to everything, they become very particular in their taste. Marketing real estate to UHNW clients is about figuring out what they’re looking for on an individual level, whether that be a unique history, a celebrity-designed house, a luxurious lifestyle property, or simple another concrete asset. Income-based demographic targeting and selectively placing ads in niche publications will empower you to effectively market to UHNW individuals.

View full post