Challenging Luxury Home Marketing Assumptions

I’ll admit a disconnect: I struggle to understand decisions like building custom pedicure rooms from my production-home marketing office. So I decided to invert my assumptions and talk to someone who actually lives in that world.

An interview with “Hank,” owner of a 24,000 sq ft custom mansion and founder of a distribution company with a $60M exit, revealed more nuanced perspectives than I expected.

Assumption 1: The More Expensive the Home, the Less Time the Owner Has

The correction: If someone cares, they will make time for their homebuilding process.

High-net-worth individuals often apply business acumen to construction. Hank ran his distribution company at very low margins with no room for error. That same discipline applied to his home build. He views home management like running a business — you can be the head of a company, but it’s good to know what everybody’s job description is.

Assumption 2: Substantial Wealth Enables Unwise Spending

The correction: Wealth indicates careful investment strategy.

Hank paid cash for his $10M+ home after evaluating opportunity costs. It’s not about what you can afford — it’s about what your money can do if you don’t put it into the house. Wealthy people got wealthy by making smart financial decisions, not by spending carelessly.

Assumption 3: Custom Amenities Reduce Resale Value

The correction: At premium price points, luxury features add value.

His home includes a movie theater, tennis court, pedicure room, and eight garages. At the ultra-luxury level, buyers expect and want all the bells and whistles. What might seem eccentric in a $500K home is expected in a $10M one.

The Takeaway

If you’re marketing luxury homes, challenge your assumptions. The mindset of a high-net-worth buyer is fundamentally different from what most marketers imagine. Talk to them. Listen to them. Let their actual behavior inform your strategy rather than your projections.