5 Homebuyer Journeys to Consider for Profitable Real Estate Investing

To dominate the current housing market, it’s essential to recognize the five distinct types of homebuyers that exist. To truly be successful in this industry, developers must focus on creating loyal and committed customers rather than just one lead at a time.

In the USA, developers focus on building brand recognition to earn repeat business from purchasers during their entire life cycle _ from their entry level home to their retirement home. Purchasers in the USA follow the developer and trust their product without the need to market the architect, the designer, or the builder.

Here are the 5 typical homebuying journeys you can influence:

1 - The First Time Buyer

A single person just starting out or building their first investment, chances are they don’t have much money to spend on upgrades and want to create equity first. You’ll want to keep this group in mind when designing starter homes ready to move-in or investing in affordable housing projects.

2 - The Mid-Range Buyer

This demographic is seeking a home that they won’t quickly outgrow and as such, they are after something that is functional and multipurpose. It is important to combine colours and finishes that are suited to the aesthetics of the surrounding environment and location of the property, be it the beach, city, or countryside.

3 - The Move-Up Buyer

When buying an upscale property, the homebuyer prioritizes their lifestyle needs while factoring in how they want to use and adapt the house. The move-up buyer is looking for quality, value and the extra features that make their home stand out from the rest. They want access to luxury amenities and upgraded materials, top-of-the-line appliances and smart home automation systems.

4 - The Downsizer

Downsizers are those who are choosing to downsize their homes, usually due to a change in lifestyle or family circumstances. Downsizing is more popular over the age of 55. This group is focused on finding homes in convenient locations that are close to family, medical facilities, shopping, entertainment, and other amenities meant for retirees. In this cycle, there is to consider that 50% of the population who gets divorced and needs to find another home. They’ll be looking for more affordable yet luxurious options that will fit their new lifestyle.

5 - The Luxury

The luxury market is often mistaken by the move-up buyer, but true luxury is a niche segment that is after exclusivity and opulence. They want a home that’s unique to them and sets them apart from others. They seek to be trendsetters and crave views, exclusive locations, bespoke furnishings, rare materials, and great spatial layouts. From ultra-modern architecture and curated fixtures to the prime location and attentive service, these residences offer everything that discerning buyers could possibly want.

When it comes to real estate development and homebuilding, having an intimate knowledge of the different types of homebuyers is critical for success. By taking the time to understand their individual journeys and crafting custom strategies tailored to each one, you can ensure that your brand stands out from the competition and work towards customer retention throughout their various life cycles instead of focusing on a single sale impact.