Tips For Realtors© Looking To Join The Luxury Market
It’s hard to earn a high income when you’re selling homes worth less than a million dollars. Because you’re only making a couple thousand dollars on each listing, you’ll need to sell dozens of homes if you want a six-figure income. That’s why the average real estate agent only makes $45,990 per year, as opposed to a luxury real estate agent. You don’t have to get stuck in that low salary range. You can meet your financial goals by selling high-end homes to maximize the amount of commission you get from each sale, becoming what’s known as a luxury real estate agent. Wondering how to become a luxury real estate agent and increase your earnings? Here are some tips to help you break into this lucrative market and become a luxury real estate agent. How to Become A Luxury Real Estate Agent Even If You’re Not Rich. You don’t need to come from a wealthy background to sell high-end homes. Here’s how to become a luxury real estate agent even if you don’t know anyone wealthy.
Familiarize Yourself with the Market. – You’ll need to convince clients that you’re an expert in high-end real estate in order to win their business and become a luxury real estate agent. And when it comes to the luxury market, you can’t really fake it till you make it. Luxury properties are notoriously hard to price because they don’t fall into a simple price per square foot model like regular houses. To understand what these unique homes are worth, you’ll need to familiarize yourself with the luxury listings that have recently sold in your area, as well as ones that are still on the market. Pay special attention to the finishes and amenities in each home because they have a major impact on the value.
Work on Your Image. – When you’re trying to attract high net worth clients, a logo and website you made yourself probably won’t look good enough to get their attention. You should strongly consider hiring a graphic designer who works with luxury real estate agents to perfect your visual branding. If you don’t have a big enough budget for that, look to other luxury agents in your market for design inspiration and make sure your website is clean and easy to use. Another thing that you shouldn’t overlook is your wardrobe. Although you don’t have to start shopping at designer stores, your clothing should be tailored, well-maintained, and professional. Showing up in a suit that’s too big for you and scuffed shoes won’t make the right impression.
Co-List With An Established Luxury Real Estate Agent. – High net worth clients probably won’t trust you with their million dollar homes until you have an established track record of success. So how do you get those first few listings you need to prove yourself? Many new agents team up with an established luxury Realtor on a co-listing. But you’ll have to show them how working with you will benefit them before they agree to it. Let them know that you’re a motivated agent who’s willing to do most of the work for a fraction of the commission. If you agree to hustle hard for only 20% of the listing fee, the agent may co-list a luxury property with you, enabling you to get the experience you need.
Prospect for Expired Luxury Listings. – Luxury listings often expire before being sold, which gives you an opportunity to reach out to the homeowner and potentially win their business. But to get them to sign on with you, you’ll have to convince them that you’ll do a better job than the last agent. One way to do this is to send them a letter that discusses your credentials and lays out a solid marketing plan for the home. Include things like testimonials, examples of marketing materials you’ve made, and results you’ve gotten for past clients to prove that you’re the right agent for their listing.
Network in the Right Places. – Unless you come from a wealthy family, you probably don’t know a lot of high net worth individuals. In order to get luxury listings, you’ll need to find out where affluent people in your city spend their time and network with them. Country clubs, art galleries, bars, and high-end gyms are often good places to start. When you run into someone who looks like a good prospect, you shouldn’t pitch them your services right away. If you strike up a conversation, the question of what you do is bound to come up. Then you can let them know you’re a real estate agent who specializes in luxury listings and hand them your business card.
Earn a Certification. – Another way to gain credibility and break into the luxury market is to earn a certification in high-end real estate. There are a number of professional designations you can choose from, including Accredited Luxury Home Specialist and Certified Luxury Home Marketing Specialist. To earn one of these certifications, you’ll have to take a course, pass a test, and sell a few luxury homes to prove your expertise.
Improve Your Marketing Skills. – Not only will you need top-notch marketing skills to win luxury listings, but also to sell them. Million dollar properties stay on the market for an average of 24 days longer than lower end houses. And multi-million dollar homes can get relisted multiple times over several years before they finally sell. So you’ll have to brush up on your marketing skills to move these listings. Instagram is one of the best social media sites for advertising luxury listings because it’s highly visual, so it’s important to know the ins and outs of the platform. You’ll also need to improve your photography and video editing skills or budget money to hire a professional, because iPhone photos won’t cut it. Open houses and print ads are also a key part of marketing high-end homes, as is creativity. If you get a tricky listing that doesn’t respond to these tried-and-true marketing strategies, you’ll have to think outside the box to get it sold.
Treat Your Clients Like Gold. – Wealthy clients expect a higher level of service than the average customer. That’s why it’s important to go above and beyond the call of duty. Try to answer their phone calls and emails right away, even if it’s after hours. Make sure to give them regular status updates about their listing. Once you start earning commission and have a bigger budget to play with, find ways to treat your clients like taking them to lunch at an upscale restaurant. If you make your clients feel taken care of and do a great job with their listing, they may recommend you to their high net worth friends.
Feel free to share your Luxury market strategies in the comments. Would love to hear from those that are having huge success in this niche.
Strength and courage,
Wade
