After conducting an exhaustive multi-year consumer behavioral research study through interviews, focus group testing and Con-joint research, Luxe List Home developed a proprietary algorithm and a patent-pending 200-point scoring methodology that combines psychographic and demographic factors, weighted according to preferences articulated by the luxury consumers studied. Through this process, we learned 1) what differentiated the luxury consumer 2) what they valued most in relation to luxury finishes, amenities, and services, and most important, 3) if they were willing to pay more, relatively speaking, for what they subjectively viewed as the optimum luxury experience.
With the results of our research we were able to successfully assign empirical values to various attributes and features found in the luxury apartment, condominium and single family homes and, when applicable, multi-family communities being reviewed. That part of the research is proprietary and cannot be revealed here. But we can share some important results.
Overwhelmingly, the luxury consumer valued individual apartment, condominium and single family home finishes and features equally as they did the applicable property’s or community's amenities and services. Accordingly, the 200 point Luxe List scoring methodology divides points between the two according to our proprietary formula.
The applicable home interior research (100 points) revealed many important data points. For example, the kitchen was valued as the single most important component. Therefore, 25% of the residence score is weighted towards the kitchen package. Factors weighed there include overall design/configuration, appliances, cabinets, flooring, counter tops and backsplashes.
The property amenity and community research (100 points) revealed that on-site fitness facilities and outdoor entertaining spaces were the most highly valued at 20% each. The preferred fitness experience includes cardio machines with individual televisions, professional strength equipment, and specialty exercise space such as dedicated yoga, stretching, or spinning rooms. The outdoor space preferences weighed heavily on a resort style pool that included water features, fire features, cabanas, deluxe outdoor furniture, scenic views, and in multifamily communities, even poolside service.
To reiterate, the survey results were quantified and correlated to produce the proprietary, patent-pending Luxe List Home scoring matrix-a true empirical measurement of what luxury consumers value, what they will pay for and for which attributes they will pay more. In specific cases, and in granular terms, the Luxe List Home scoring matrix does in fact produce reliable evidence one can use to reasonably project if and how much (or how much more) in relative terms the luxury consumer is willing to pay for specific features and amenities.
Our research continues today as we endeavor to stay abreast of trends and consumer behavioral preferences as and when they change in the luxury home purchase and rental markets.