To break into ultra-luxury: Understand the ultra-wealthy

Understanding the ultra-wealthy

I know many of you want to break into the luxury market. But if you want to work with ultra-wealthy clients, you first have to understand how they think.

After 25 years as an agent working with some of the wealthiest people on the planet, I’ve realized that most people completely misunderstand how the ultra-wealthy operate. By “ultra-wealthy,” I’m talking about people with $30 million or more in liquid, investable assets.

So today, I want to break down six traits I’ve seen show up again and again in my dealings with the ultra-wealthy. 

Drop down to today’s Foundation Plans. Consider it a primer on the ultra-wealthy, from me to you.

- James

Mortgage demand drops by 19% from a year ago

Mortgage demand from homebuyers fell 19% from a year ago as the average 30-year fixed rate jumped to 7.22%, according to CNBC. The abrupt climb in borrowing costs is pushing both prospective buyers and current homeowners to the sidelines, with total mortgage application volume down 4.1% from the prior week.

Here’s what to know:

• Rates are climbing fast: The MBA's average 30-year fixed rate for conforming loans rose to 6.97% from 6.85% last week. By Tuesday, Mortgage News Daily put the average at 7.22%, nearly a full percentage point above where it stood a year ago.

• The recent jump is historically sharp: Over the past six business days, rates rose an average of 0.33%, the most abrupt increase since October 2024.

• Refinancing has taken the biggest hit: Refinance applications dropped 9% for the week and are 65% lower than the same week a year ago, as higher rates erode the benefit for many borrowers.

• Purchase demand is weakening: Applications to buy a home slipped 1% for the week and are down 19% from a year earlier.

• Affordability remains a barrier: Buyers still face high home prices, and while the supply of homes for sale is growing in much of the country, much of that inventory is at the higher end of the market.

My take

The housing market is in a standoff. Rates jumped 0.33 points in six business days, the sharpest spike since October 2024, leaving the 30-year fixed at 7.22%, nearly a full point above last year. Refinancing is down 65% from a year ago, which makes sense when the new loan costs more than the old one. The bigger tell is purchase demand, down 19%, which suggests buyers are worn down by high prices as well as rates. More listings are coming online, but mostly at the high end, so the average buyer isn't getting much relief. And because energy prices and sticky inflation are driving the surge rather than housing itself, even Fed hikes may not bring rates down soon. Expect plenty of people to keep watching from the sidelines.

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Pending sales held steady in August but are down for the year 

Pending home sales edged up 0.3% in August, but contract signings still fell 4.7% from a year earlier as mortgage rates near 6.7% (Fannie Mae) kept many buyers on the sidelines, according to Realtor.com. 

Falling listing prices and stronger buying power have not been enough to offset higher borrowing costs, leaving the market sluggish heading into fall.

Here are the key takeaways:

• Rates continue to weigh on buyers: Mortgage rates held near 6.7%, and the 30-year fixed hit a 15-month high of 6.76%, per Fannie Mae.

• Affordability gains fell short: Listing prices fell for a 10th straight month, but higher rates offset the gains.

• Regions moved in opposite directions: The West (+3.0%) and South (+2.3%) gained monthly, while the Northeast (-4.2%) and Midwest (-1.6%) fell.

• A few metros bucked the trend: Richmond, VA (+11.3%), San Antonio, TX (+6.6%), and Memphis, TN (+6.4%) led year-over-year growth.

• Fall timing may matter more than rates: Months' supply hit a 10-year high, and the "Best Time to Buy" window lands in early October.

My take

The housing market isn't broken so much as frozen right now. Home prices are easing, and more properties are hitting the market, but mortgage rates hovering around 6.7% (Fannie Mae) are holding buyers back. For those who are ready and able to buy, this fall's advantage won't come from cheaper financing. It will come from bargaining power: with more homes to choose from and sellers eager to close, there's real room to negotiate on price, concessions, and terms. See our next story.

Where homebuyers are getting the most seller concessions

Sellers gave concessions in 44.7% of U.S. home sales in August, up from 42.6% a year earlier and the highest August share since at least 2020.

According to Redfin, concessions are especially common in Sun Belt buyer’s markets, including Atlanta and Nashville, where about 7 in 10 homebuyers are getting them. Seller concessions are least common in strong housing markets like the Bay Area and New York. 

Roughly 15% of buyers are getting double discounts: A seller concession and a price cut.

Here are the markets where concessions are the most common for buyers:

1. Atlanta, GA – 72.8%

2. Charlotte, NC – 67.9%

3. Phoenix, AZ – 67.4%

4. Las Vegas, NV – 66.7%

5. Raleigh, NC – 66.3%

6. Nashville, TN – 63.1%

7. Houston, TX – 58.5%

8. Denver, CO – 58.4%

9. Riverside, CA – 58.0%

10. Virginia Beach, VA – 57.7%

My take

Even though mortgage rates aren’t coming down anytime soon, buyers have the upper hand, and they know it. August was the strongest buyer’s market in Redfin’s records going back to 2013, and 44.7% of sellers are now paying to get deals done. Phoenix shows how quickly the balance has shifted: its concession rate jumped 15.3 points in a year to 67.4%. And in Nashville, Houston and Las Vegas, sellers outnumber buyers by more than two to one. In markets like these, buyers can afford to be picky and negotiate aggressively on price, concessions, and terms.

Schematics

The news that just missed the cut

• Preview listings now show up on both Zillow and Realtor.com

• This is how agents are actually using AI in their business

• The 10 most overvalued housing markets in America

• If you want to dominate a neighborhood in 6 months, do this

• How an 11-agent team is selling 300+ homes with zero paid leads

Foundation Plans

Advice from James to win the day

As I said up top, if you want to work in the luxury market, don’t just study luxury real estate. Study the people who buy it.

Here are six lessons I’ve learned over my career dealing with the ultra-wealthy that I think most agents overlook. Learn and internalize them, and you’ll be better prepared to break into this segment and succeed once you’re there.

1. The wealthier they are, the less they want to be seen.

Money doesn’t buy the spotlight — it buys the exit from it. I’ve had clients go through three layers of intermediaries before I even learned their name, then buy a house through an LLC behind a holding company with a law firm as the point of contact.

It’s not paranoia. Visibility brings security risks, litigation, unwanted attention, and reputational exposure. The public image of wealth is flashy. The private reality is often deliberately invisible.

2. They spend big to buy back time.

We’re not talking about hiring a housekeeper. We’re talking about a fully outsourced life — assistants, drivers, chefs, travel coordinators, doctors on call — so the things that don’t require their personal attention never reach them.

I once watched a client’s assistant juggle a scheduling conflict, coordinate a pickup for her kids, and arrange dinner plans while we toured a house. She didn’t see that as a luxury. She saw it as the cost of operating at her level.

Money can come back. Time doesn’t.

3. They’re frugal on the small stuff and generous on what matters.

I’ve had ultra-wealthy clients negotiate my commission harder than anyone else — then spend eight figures on a home without blinking.

That’s not necessarily contradictory. It’s mental accounting. Routine spending can feel like a leak, so it gets watched closely. But when they believe something creates real value — whether it’s an investment, experience, or something else that matters to them — they’re willing to spend.

Same dollar, different meaning.

4. They think in decades, not quarters.

Most people plan a few months or maybe a few years ahead. Ultra-wealthy families, particularly those managing multigenerational wealth, can think in decades.

They’re asking what a property or investment means for their children and grandchildren. What looks overly cautious from the outside can make perfect sense when you’re optimizing for wealth preservation over 50 years, not maximum returns over the next 18 months.

5. They guard their decision-making like it’s a limited resource — because it is.

Structured routines. Delegated calendars. Even wearing essentially the same thing every day to eliminate another unnecessary decision.

One client put it to me simply: “I only want to make the decisions that only I can make.”

Everything else gets handed off. Their time and mental energy are reserved for the handful of decisions that genuinely require their judgment.

6. Real luxury isn’t things — it’s time and access.

Early in my career, I thought extreme wealth was mostly about what you owned: the houses, cars, watches, and art.

But at the highest levels, the real currency is often time and access. It’s flying private so you don’t spend hours at the airport. It’s having a doctor who is immediately reachable. It’s belonging to private clubs most people have never heard of.

The things they value most often aren’t visible from the driveway.

I dive deeper into all six traits in my video. Give it a watch, then drop me a line and tell me what you think. I genuinely hope it helps you.

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Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“Your time is limited, so don’t waste it living someone else’s life.” — Steve Jobs

Each day is a gift – a chance to live the life you want. Ruthlessly focus on your goals. Don’t let your past or the fear of being judged distract or paralyze you. Choose to live with an integrity that you can be proud of.

Have a wonderful weekend, and I’ll see you back here next Friday!

- James