WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR SURVEY AND INSIGHTS INTO PREFERENCES AND BEHAVIOR

COLDWELL BANKER PREVIEWS INTERNATIONAL AND IPSOS MEDIACT WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR SURVEY AND INSIGHTS INTO PREFERENCES AND BEHAVIOR

TABLE OF CONTENTS Objective and Methodology 03 Key Findings 04 High Net Worth and Generational Differences 07 Appendix 10 Home Ownership Profile 11 Most Recent Residential Property Purchase 13 Real Estate Information Sources 16 Buying or Selling with Assistance from Agents 17 Looking Ahead: Future Plans and Expectations 20 Survey in partnership with Ipsos MediaCT COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 2

OBJECTIVE AND METHODOLOGY NRT commissioned Ipsos MediaCT to conduct research among high-net-worth individuals (HNWIs) in the United States with a minimum household income of $200,000 per year and a minimum net worth of $5 million. HNWIs reflect 1.8 million households, or roughly the top 1.5% of the U.S. population, according to the 2013 Survey of Consumer Finances. Respondents were recruited and screened to include only those age 21 or older. A nationwide survey of 500 HNWIs individuals was conducted in Quarter 2 of 2015. The survey data have been weighted with respect to the demographic variables shown in this table to better reflect the profile of consumers in wealthy households according to the 2013 Survey of Consumer Finances. These results are intended to provide important real estate investment insights that can influence decision making and best practices implementation for real estate agents. HIGH-NET-WORTH INDIVIDUAL DEFINITION Age: 21+ years old Annual household income: $200,000+ Net worth: $5 million+ HIGH-NET-WORTH INDIVIDUALS REFLECT 1.8 MILLION HOUSEHOLDS OR ROUGHLY TOP 1.5% OF THE U.S. POPULATION* Sample Profile 2013 SCF Benchmark Survey Data (unweighted) Survey Data (weighted) Gender ratio (M:F) n/a 55%:45% 56%:44% Age: <65 / 65+ 61% / 39% 81% / 19% 61% / 39% AVERAGE AGE 53 56% MALE Household Income: $200K-$499K $500K-$999K $1M or more 38% 30% 32% 52% 8% 40% 38% 30% 32% AVERAGE NET WORTH $8.5M AVERAGE HOUSEHOLD INCOME: $609K Net Worth: $5 - $9.9M $10M or more 59% 41% 64% 36% 58% 42% 41% of the survey sample had $10 million or more in net worth reflecting the top 0.6% of U.S. population* *According to the 2013 Survey of Consumer Finances COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 3

KEY FINDINGS RESIDENTIAL REAL ESTATE CENTRAL TO LIVES AND FINANCES AVERAGE NUMBER OF HOMES OWNED NET WORTH IN RESIDENTIAL REAL ESTATE 38% 2.1 PURCHASING PROFILE 43% PURCHASED RESIDENTIAL REAL ESTATE IN THE PAST FIVE YEARS (68% IN THE PAST TEN YEARS) 56% PAID CASH FOR THEIR MOST RECENT PURCHASE OF RESIDENTIAL REAL ESTATE 58% PAID BELOW ASKING PRICE (VS. ONLY 5% PAYING MORE) MODERN AMENITIES RISING GREEN, SMART, OPEN Compared to three years ago, how (if at all) has the importance of these amenities changed for you? Less important More important READY-TO-MOVE-INTO (NOT A FIXER-UPPER) -3% 43% FULLY AUTOMATED/WIRED ENVIRONMENT -6% 41% GREEN OR LEED CERTIFIED -8% 36% OPEN FLOOR PLAN -4% 36% HOME GYM -11% 34% HOME THEATER -7% 32% SAFE ROOM -9% 30% COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 4

KEY FINDINGS 8 IN 10 (AND RISING) USE REAL ESTATE AGENTS FOR BUYING, SELLING Made their most recent purchase with a real estate agent (up from 77%) Made their most recent sale with a real estate agent (up from 77%) 82% 81% Likely to use their real estate agent again Find it very comforting to work with a real estate agent who is associated with respected real estate company 76% 92% REAL ESTATE AGENTS A CRUCIAL RESOURCE 72%: These days, working with a real estate agent to buy or sell a home is more important than ever before 64%: I would never consider selling a home without using a real estate agent 63%: I would never consider buying a home without using a real estate agent 58% say contact with a real estate agent is extremely or very important when choosing a home #1, ahead of friends, family and digital resources COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 5

KEY FINDINGS HNWIS EXPECT RESPONSIVE AGENTS MOST IMPORTANT CHARACTERISTICS OF REAL ESTATE AGENTS (AVERAGE ON 10-POINT SCALE; TOP 6 SHOWN) RESPONDS QUICKLY TO MY MESSAGES 8.23 EXPERIENCED 8.22 KNOWLEDGE OF HOME BUYING AND SELLING PROCESS 8.19 KNOWLEDGE OF HOME SALES HISTORY IN AREA WHERE BUYING/SELLING HAS AN EXCELLENT REPUTATION 8.08 8.06 CREATED A POSITIVE IMPRESSION WHEN I FIRST MET HIM/HER 8.00 NOTE: SELECTED ITEMS SHOWN FULL LIST OF ITEMS IN THE APPENDIX. RESPONSE EXPECTATIONS HIGH ABOUT HALF expect a response within one hour ABOUT TWO-THIRDS within two hours VIRTUALLY ALL within one business day IT S LESS ABOUT CHANNEL 85% like phone calls 84% like email 60% like texts OVER HALF ANTICIPATING A REAL ESTATE PURCHASE PLANNING TO PURCHASE RESIDENTIAL REAL ESTATE IN THE NEXT 12 MONTHS 54% 48% from 2014 Those considering a purchase are twice as likely to be looking for a residence for their personal use, as opposed to purely for investment/rental purposes. Still, purchase intenders strongly consider the property s growth potential, and 94% expect their property to grow, on average, 16% in value over the next five years. Those not considering a real estate purchase are primarily content with their current holdings (as opposed to avoiding real estate purchases due to economic uncertainty or a desire to remain liquid). COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 6

HIGH NET WORTH AND GENERATIONAL DIFFERENCES BOOMERS ARE THE MOST PREVALENT (AND MOST DIVERSIFIED) GENERATION OF HNWIS Millennials (age 18-34) Gen Xers (age 35-49) Boomers (age 50+) Percentage of HNW population 26% 31% 43% Average household income $683K $703K $544K Average net worth $9.7M $9.2M $8.1M % of net worth in residential real estate 54% 54% 26% KEEP IN MIND THAT MILLENNIALS MAY NOT BE THE PRIMARY BREADWINNERS CONTRIBUTING TO THE HNW STATUS OF THESE HOUSEHOLDS MILLENNIALS ARE MOST RELIANT ON AGENTS, AND MOST COMFORTED BY ASSOCIATION WITH A RESPECTED REAL ESTATE COMPANY Millennials (age 18-34) Gen Xers (age 35-49) Boomers (age 50+) I find it very comforting to work with a real estate agent who is associated with a respected real estate company 99% 90% 91% These days, working with a real estate agent to buy or sell a home is more important than ever before 93% 83% 60% I would never consider buying a home without using a real estate agent 90% 71% 50% I would never consider selling a home without using a real estate agent 86% 73% 53% BOOMERS DOWNSIZING, AND MOST LIKELY TO HAVE TRANSACTED WITHOUT AN AGENT Millennials (age 18-34) Gen Xers (age 35-49) Boomers (age 50+) Amount paid for the home or residential property you purchased most recently $4.958M $5.239M $1.553M Purchased your most recent residential property with the assistance of a real estate agent 94% 90% 75% Sold most recent residential property with the assistance of a real estate agent 79% 70% 63% COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 7

HIGH NET WORTH AND GENERATIONAL DIFFERENCES CONTINUED REAL ESTATE AGENTS PARTICULARLY IMPORTANT TO MILLENNIALS AND GEN XERS How important was contact with a real estate agent when searching for the home you purchased most recently? Millennials (age 18-34) Gen Xers (age 35-49) Boomers (age 50+) Percentage extremely/very important 76% 70% 47% Rank vs. other items on list Clear #1 Tied for #1 with real estate brand website Clear #1 SOCIAL MEDIA AND CUSTOMER REVIEWS ARE PARTICULARLY IMPORTANT TO MILLENNIALS IMPORTANCE WHEN SEARCHING FOR A REAL ESTATE AGENT (8, 9 OR 10 ON A 10-POINT SCALE) Millennials (age 18-34) Gen Xers (age 35-49) Boomers (age 50+) Reputation of the company the agent works for 77% 66% 52% Recommendations from family/friends 75% 69% 48% Customer reviews (Yelp, Angie s List, etc.) 71% 61% 22% Social media (Facebook, Instagram, LinkedIn, etc.) 61% 47% 7% MILLENNIALS MOST LIKELY TO BUY SOON, AND BASED ON LIFESTYLE (RATHER THAN LOCATION) Millennials (age 18-34) Gen Xers (age 35-49) Boomers (age 50+) Considering purchasing additional residential real estate in the next 12 months 69% 50% 17% WHICH STATEMENT BEST DESCRIBES YOUR NEXT SEARCH FOR A PRIMARY RESIDENTIAL PROPERTY? Millennials (age 18-34) Gen Xers (age 35-49) Boomers (age 50+) I am free to choose a residence that truly fits my lifestyle and will not limit my search based on location 85% 69% 29% I will pick the location of my next residence first, and then find a property that fits my lifestyle 15% 31% 71% COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 8

HIGH HET WORTH AND GENERATIONAL DIFFERENCES CONTINUED GEN XERS HAVE THE HIGHEST EXPECTATIONS FOR QUICK RESPONSES; HALF OF ALL GENERATIONS EXPECT RESPONSES TO TEXT WITHIN AN HOUR Millennials (age18-34) Gen Xers (age 35-49) Boomers (age 50+) Phone/voicemail 86% 90% 85% Email 83% 87% 83% METHODS LIKED FOR COMMUNICATION WITH REAL ESTATE AGENT Text 75% 74% 49% Millennials (age 18-34) Gen Xers (age 35-49) Boomers (age 50+) Voicemail 46% 65% 38% Email 39% 50% 29% EXPECT A RESPONSE WITHIN AN HOUR Text 51% 51% 47% MILLENNIALS USE A WIDER RANGE OF CRITERIA WHEN CHOOSING A REAL ESTATE AGENT Millennials (age 18-34) Gen Xers (age 35-49) Boomers (age 50+) Created a positive impression when I first met him/her 72% 59% 48% Experienced 70% 57% 60% Skilled in dealing with contracts and legal paperwork 70% 63% 43% Has credentials indicating experience and knowledge in the luxury housing market 70% 61% 29% Responds quickly to my messages 69% 61% 55% Knowledge of home sales history in the area where I was buying/selling 69% 62% 50% Has an excellent reputation 64% 55% 48% Strong negotiator 63% 51% 47% EXTREMELY/VERY IMPORTANT WHEN SELECTING A REAL ESTATE AGENT Knowledge about home buying and selling process 62% 62% 55% Expertise in the luxury home market 60% 54% 28% MILLENNIALS WERE ALSO MORE SATISFIED WITH THE REAL ESTATE AGENTS THEY USED ON EACH OF THESE DIMENSIONS Has access to a special luxury home marketing program 56% 52% 19% Works for a real estate agency with an excellent reputation 55% 56% 44% Ability to be discreet 49% 51% 37% Works for a firm that has international connections 47% 42% 12% COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 9

APPENDIX COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 10

HOME OWNERSHIP PROFILE NUMBER OF PROPERTIES OWNED ON AVERAGE, U.S. HNWIS OWN 2.1 HOMES THAT ARE USED FOR PERSONAL RESIDENCES OR VACATION HOMES 40% 39% 35% 31% KEY: 2014 2015 15% 12% 7% 5% 2% 5% 4% 4% 1 2 3 4 5 MORE THAN 5 Q1. How many homes do you currently own and use as personal residences or vacation homes? Base: All respondents (n=500) PERCENTAGE OF NET WORTH IN REAL ESTATE ON AVERAGE, 38% OF NET WORTH IS IN RESIDENTIAL REAL ESTATE 16% 80% AND ABOVE 10% 60% - 79% 40% LESS THAN 20% 13% 40%-59% 22% 20% - 39% Q1a. What percent of your overall net worth is in residential real estate? Base: All respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 11

HOME OWNERSHIP PROFILE CONTINUED TRENDS IN DESIRED AMENITIES Less important More important Ready-to-move-into (NOT a fixer-upper) 3% 43% Fully automated/wired home environment 6% 41% Green or LEED certified 8% 36% Open floor plan 4% 36% Home gym 11% 34% Home theater 7% 32% Safe room 9% 30% Four or more garages 15% 30% Wine cellar or wine room 14% 28% Outdoor kitchen 10% 28% Pool 11% 27% Space to display art collection 11% 26% Separate guest house 10% 26% Deep-water dock 16% 25% Separate catering kitchen 12% 22% Tennis court or other sport court 18% 21% Staff quarters 16% 18% Q3. Compared to three years ago, how (if at all) has the importance of these amenities changed for you? Base: All respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 12

MOST RECENT RESIDENTIAL PROPERTY PURCHASE 43% HAVE PURCHASED REAL ESTATE IN THE LAST FIVE YEARS 7% LESS THAN 1 YEAR 15% 20+ YEARS 25% 5-9 YEARS 17% 10-19 YEARS 17% 3-4 YEARS 19% 1-2 YEARS Q5. Now we would like to ask some questions about the home or residential property that you purchased most recently. How many years ago did you purchase it? Base: All respondents (n=500) AMOUNT PAID FOR MOST RECENTLY PURCHASED PROPERTY THE MEDIAN PURCHASE PRICE PAID BY U.S. HNWIS FOR THEIR MOST RECENT PROPERTY IS $1.3M (DOWN FROM $1.8M) 25% 2014 2015 21% 19% 17% 17% 13% 10% 10% 9% 9% 7% 7% 5% 5% 5% 5% 4% 4% 4% 3% UNDER $500,000 $500,000 TO <$1M $1M- $1.4M $1.5M- $1.9M $2M- $2.9M $3M- $3.9M $4M- $4.9M $5M- $6.9M $7M- $9.9M $10 M OR MORE Q8. Approximately how much did you pay for the home or residential property you purchased most recently? Base: All respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 13

MOST RECENT RESIDENTIAL PROPERTY PURCHASE CONTINUED CASH PURCHASE? A MAJORITY OF U.S. HNWIS REPORT PAYING IN CASH FOR THEIR MOST RECENTLY PURCHASED HOME OR RESIDENTIAL PROPERTY 57% PAID ENTIRELY IN CASH 43% TOOK OUT A HOME LOAN OR MORTGAGE FOR AT LEAST SOME OF IT Q6. Which statement best describes how you paid for the home or residential property you purchased most recently? Base: All respondents (n=500) PERCENTAGE OF HOME PAID WITH LOAN WHEN A MORTGAGE IS TAKEN BY HNWIS, IT IS TYPICALLY FOR HALF OF THE PURCHASE PRICE 14% HOME LOAN 76% - 100% 36% HOME LOAN 51%- 75% 18% HOME LOAN 1% - 25% 33% HOME LOAN 26% - 50% Q7. Thinking again about the residential property you purchased most recently, what percent of the home price did you pay for with a loan or mortgage? Base: Took out Home Loan or Mortgage For Home or Residential Property Payment (n=222) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 14

MOST RECENT RESIDENTIAL PROPERTY PURCHASE CONTINUED FINAL PRICE OF HOME THE MAJORITY OF HOME PURCHASES WERE MADE AT LESS THAN THE ASKING PRICE 6% PAID MORE THAN ASKING PRICE 36% PAID ASKING PRICE 58% PAID BELOW ASKING PRICE Q9. Which statement best describes the final price that you paid for the residential property you purchased most recently? Base: All respondents (n=500) RETAINING A REAL ESTATE AGENT OFTEN RESULTS IN PAYING BELOW ASKING PRICE. Used Real Estate Agent to Buy Did not use Real Estate Agent to Buy Paid below the asking price 60% 49% Paid the asking price 33% 51% Paid more than the asking price 7% 0% Q9. Which statement best describes the final price that you paid for the residential property you purchased most recently? Base: All respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 15

REAL ESTATE INFORMATION SOURCES IMPORTANT SEARCH FACTORS REAL ESTATE AGENT CONTACT IS CRITICAL IN SEARCHING FOR HOMES. CONTACT FROM A REAL ESTATE AGENT 58% FRIENDS OR ACQUAINTANCES 44% REAL ESTATE BRAND WEBSITE 38% ZILLOW 37% INDIVIDUAL PROPERTY WEBSITE 36% REALTOR.COM 36% LUXURY HOME MAGAZINE ADS 36% TRULIA 31% YARD SIGNS 30% VIDEOS 30% NEWSPAPER ADS 26% SOCIAL MEDIA 26% Q10. How important were each of the following when you searched for the home you purchased most recently? Base: All respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 16

BUYING OR SELLING WITH ASSISTANCE FROM AGENTS IMPORTANT CHARACTERISTICS OF REAL ESTATE AGENTS RESPONSIVENESS AND EXPERIENCE ARE THE MOST VALUED ASPECTS OF A REAL ESTATE AGENT Very Important (10) 9 8 7 6 5 4 3 2 Not At All Important (1) Mean Responds to messages quickly 8.23 Experienced Knowledge about home buying and selling process Knowledge of home sales history in area where buying/selling Has an excellent reputation Created a positive impression when I first met him/her Skilled in dealing with contracts and legal paperwork Strong negotiator Works for a real estate agency with an excellent reputation Ability to be discreet Has credentials indicating experience and knowledge in luxury housing market Expertise in the luxury home market Has access to a special luxury home marketing program Works for a firm that has international connections 8.22 8.19 8.08 8.06 8.00 7.78 7.73 7.67 7.49 7.19 6.89 6.34 5.35 0% 20% 40% 60% 80% 100% Q14. During your most recent residential property transaction (buying or selling), how important were the following characteristics of the real estate agent who assisted you? Base: All Respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 17

BUYING OR SELLING WITH ASSISTANCE FROM AGENTS CONTINUED SATISFACTION WITH REAL ESTATE AGENTS REAL ESTATE AGENTS GET PARTICULARLY STRONG MARKS FOR EXPERIENCE AND KNOWLEDGE Very Satisfied (10) 9 8 7 6 5 4 3 2 Not At All Satisfied (1) Mean Experienced Knowledge about home buying and selling process Knowledge of home sales history in area where buying/selling Has an excellent reputation 8.15 8.14 8.09 8.05 Responds to messages quickly Created a positive impression when I first met him/ her Works for a real estate agency with an excellent reputation Skilled in dealing with contracts and legal paperwork Ability to be discreet 8.02 8.00 7.98 7.95 7.90 Strong negotiator Has credentials indicating experience and knowledge in luxury housing market Expertise in the luxury home market Has access to a special luxury home marketing program Works for a firm that has international connections 7.75 7.56 7.46 7.31 6.90 0% 20% 40% 60% 80% 100% Q15. During your most recent residential property transaction (buying or selling), how satisfied were you with the following characteristics of the real estate agent who assisted you? Base: All Respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 18

BUYING OR SELLING WITH ASSISTANCE FROM AGENTS CONTINUED COMMUNICATION WITH AN AGENT PHONE AND EMAIL ARE THE MOST WIDELY PREFERRED WAYS OF COMMUNICATING WITH AGENTS 15% 16% 40% Don t like using this method Like using this method 85% 84% 60% PHONE CALLS/ VOICEMAIL EMAIL TEXT Q17. Which methods do you like (or dislike) for communicating with your real estate agent? Base: All Respondents (n=500) RESPONSE TIME EXPECTED FROM AGENT HALF EXPECT A RESPONSE WITHIN ONE HOUR; 78% WITHIN TWO HOURS LIKELIHOOD TO USE PRIOR AGENT AGAIN NEARLY 2 IN 3 SATISFIED WITH AGENT ENOUGH TO USE HIM/HER AGAIN 21% WITHIN 15-60 MINUTES 29% WITHIN 15 MINUTES 17% NOT LIKELY AT ALL 37% EXTREMELY LIKELY 6% NOT VERY LIKELY 28% WITHIN 1-2 HOURS 13% SAME BUSINESS DAY 9% WITHIN 24 HOURS 19% SOME WHAT LIKELY 20% VERY LIKELY Q18. When you send a message to your real estate agent by voicemail, email or text, how quickly do you expect a response? Base: All Respondents (n=500) Q19. Please take a moment and think about the next time you might search for a home or residential property. How likely are you to use the real estate agent you used for your most recent transaction? Base: All Respondents (n=500 COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 19

LOOKING AHEAD: FUTURE PLANS AND EXPECTATIONS FUTURE PURCHASE CONSIDERATION 54% OF HNWIS ARE PLANNING TO PURCHASE RESIDENTIAL REAL ESTATE IN THE NEXT 12 MONTHS UP FROM 48% IN 2014 CONSIDERING PURCHASE IN THE NEXT 12 MONTHS 52% 46% 10% 18% No Yes, for investment use Yes, for personal use 38% 35% 2014 2015 Q23. Are you considering purchasing additional residential real estate in the next 12 months? Base: All respondents (n=500) REASONS FOR NOT CONSIDERING PURCHASE THE LEADING REASON HNWIS ARE NOT CONSIDERING A RESIDENTIAL PURCHASE IS THAT THEY ARE SIMPLY CONTENT. I AM HAPPY WITH THE HOME(S) I HAVE NOW 87% WANT TO REMAIN LIQUID 10% UNSURE ABOUT THE ECONOMY OTHER INVESTMENT CATEGORIES APPEAR BETTER RESIDENTIAL REAL ESTATE VALUES HAVE NOT HIT BOTTOM WOULD NEED TO SELL PROPERTY FIRST AND PRICES ARE TOO LOW RESIDENTIAL REAL ESTATE MARKET IS DEPRESSED RESIDENTIAL REAL ESTATE IS TOO RISKY FOR AN INVESTMENT MY OVERALL PORTFOLIO IS DOWN 10% 8% 2% 2% 1% 1% 0% OTHER 15% Q24. Which reasons describe why you are not considering a residential real estate purchase in the next 12 months? Base: Not considering residential property purchase in next 12 months (n=232) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 20

LOOKING AHEAD: FUTURE PLANS AND EXPECTATIONS CONTINUED REASONS FOR CONSIDERING PURCHASE THE DESIRE FOR A GOOD INVESTMENT AND A SPECIFIC LOCATION ARE THE KEY DRIVERS FOR PURCHASING NEW REAL ESTATE VIEW AS GOOD INVESTMENT 40% WANT A SPECIFIC LOCATION SAFER INVESTMENT ALTERNATIVE THAN STOCK MARKET WANT ANOTHER RESIDENCE 39% 38% 31% INTEREST RATES ARE LOW 31% REAL ESTATE PRICES ARE LOW WANT TO BUILD OR BUY A GREEN ECO-FRIENDLY HOME LOTS OF INVENTORY TO CHOOSE FROM 29% 25% 23% NEED A LARGER HOME NEED TO SHIFT MONEY FROM OTHER ASSETS WANT TO DOWNSIZE 22% 19% 16% OTHER 7% Q25. Which reasons describe why you are considering a residential real estate purchase in the next 12 months? Base: Considering residential property purchase in next 12 months (n=268) INFLUENCE OF SOCIAL MEDIA AND CUSTOMER REVIEWS RECOMMENDATIONS AND REPUTATION ARE THE TOP DRIVERS WHEN CHOOSING AN AGENT Most Influence (10) 9 8 7 6 5 4 3 2 Least Influence (1) Recommendations from family/friends 45% Reputation of the company that the agent works for 44% Customer reviews (Yelp, Angie s List, etc.) 29% Social media (Facebook, Instagram, Linkedin, etc.) 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q21. Suppose that you have decided to search for a real estate agent to help you in purchasing a new home or residential property. How much influence would the factors listed have on your choice of your real estate agent? Please use a 1 to 10 scale, where 1 means no influence at all and 10 means extremely strong influence. Base: All Respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 21

LOOKING AHEAD: FUTURE PLANS AND EXPECTATIONS CONTINUED LOCATION VS. LIFESTYLE HALF OF HNWIS SURVEYED SAY THAT THEY WILL SELECT FROM PROPERTIES THAT FIT THEIR LIFESTYLE WITHIN A SPECIFIED GEOGRAPHIC AREA RATHER THAN SEARCHING WITHOUT LIMITS BASED ON LOCATION IN NEXT SEARCH FOR A PRIMARY RESIDENTIAL PROPERTY 44% 50% I have more freedom to choose a residence that truly fits my lifestyle and will not limit my search based on location 56% 50% I will pick the location of my next residence first and then find a property that fits my lifestyle 2014 2015 Q22. Please indicate which statement best describes your next search for a primary residential property. Base: All respondents (n=500) EXPECTED FIVE-YEAR VALUE APPRECIATION 16% AVERAGE EXPECTED 5-YEAR APPRECIATION 21% 23% 17% 12% 9% 8% 4% 4% 2% DECREASE STAY THE SAME INCREASE 0%-5% INCREASE 6%-10% INCREASE 11%-15% INCREASE 16%-20% INCREASE 21%-25% INCREASE 26%-30% INCREASE 31%+ Q26. How much do you expect the value of your primary residence to change over the next five years? Base: All Respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 22

LOOKING AHEAD: FUTURE PLANS AND EXPECTATIONS CONTINUED FUTURE PURCHASER WOULD BE... MOST ANTICIPATE A U.S. RESIDENT TO PURCHASE THEIR HOME SHOULD IT BE ON THE MARKET 13% SOMEONE WHO CURRENTLY LIVES OUTSIDE OF THE UNITED STATES 87% SOMEONE WHO CURRENTLY LIVES IN THE UNITED STATES Q27. If you were to sell a home in the next year, who do you think would be most likely to buy it? Base: All Respondents (n=500) COLDWELL BANKER PREVIEWS INTERNATIONAL // WEALTH, REAL ESTATE AND THE HIGH-NET-WORTH INVESTOR 23