In the eyes of the real estate consumer, luxury is whatever they want it to be. I talked about this in a previous blog post relating to some of next year’s trends. Even though some are predicting the consumer’s desire for value as a trend for 2010, I think it is more of a realization instead of a new consumer behavior.
What about perceived value?
Every potential buyer or renter that visits your property will have a different set of values. Further more, that value will evolve over time. My values today are not the same as they were 2 years ago. Consumer values are influenced by lots of things including social trends.
It makes sense when you think about it but you would be surprised at how many businesses market their products without ever thinking of an evolving perceived value. This doesn’t just apply to real estate. The consumer will determine the value of any product.
How do you Market Value Right Now?
If I were starting a new project, I would focus on the value of sustainable architecture and construction. The perceived value in green products is extremely high right now. People don’t value the ozone layer. They value their wallet. The value of energy efficient features is not related to environmentalism. It is related to dollar signs. The benefits of marketing green products are numerous. It allows the consumer to save money, which is consistently valuable, and it allows them to boast a green lifestyle, which plays into current social trends.
The number one tip for homeowners trying to sell their house right now is to incorporate money saving green features especially energy efficiency features. “Green” is a consumer buzzword. It is what home buyers perceive as value.
This value will change over time. Green products will either lose their hype or become a standard in real estate. Regardless of how it passes, realize that it will. I am hoping it will become a standard.
We need to always be looking for the next perceived luxury or value. I would suggest monitoring consumer behavior if you aren’t already. Those who get in early can differentiate themselves from competitors which is always a good thing when it comes to marketing.