Are you looking to break into the luxury real estate market? Aren’t we all? I mean, who wouldn’t want that commission check? But, it’s not as easy as simply waiting in your office for a lead to come through. Very few ultrarich real estate owners will simply cold call a real estate brokerage and ask for one of their random agents. Becoming a luxury real estate agent is a position one must work for, thrive in, and meet the standard for most luxury real estate clients.
Not every real estate agent is capable of selling ultra-expensive luxury homes. Many agents are simply generalists, where they can buy and sell for clients regardless of their income bracket. Some cater to certain niches such as a buyers agent only, listing agent, in a particular neighborhood, or probate, foreclosures, and short sales. Then there’s the luxury property market. This market is typically characterized by refinement and exclusivity. The term luxury may vary depending on the market and it’s not necessarily about the price tag, although luxury homes do come at a premium. The typical luxury home in the United States ranges from about $2.5 million in Los Angeles to $3.6 million in New York City.
Agents that specialize in luxury real estate tend to do business with ultra-high net worth individuals, those that have assets of $30 million or more. These are among the world’s wealthiest individuals and while it’s a group that is still fairly small, it continues to grow each year. So how can you break into this market?
Here’s how to become a luxury real estate agent.
Understand your clientele.
I’m not going to start at the beginning and I’ll assume you have your real estate license. Obviously, you’ll need that to become a luxury real estate agent but you’ll need to understand your clientele as well. These properties are not simply going to sell themselves. It’s much easier to sell a three-bedroom condominium than it is a 30,000 square-foot estate mentioned. You’ll need to know the market and the clientele. Get into the minds of the ultra-rich. Read blogs, articles, and books the target your clientele and what they might read.
Networking and co-listing
Who wouldn’t want to take on a $20 million listing all on their own? But, a clever and luxury savvy agent understands the respect and the networking that goes along with co-listing. This is one of the best ways to break into the luxury real estate markets. You might need to team up with someone that is already very prolific at selling and marketing luxury homes. Try not to be greedy and remember half of a law that is more than a lot of nothing.
Get relevant experience.
Success and confidence in being a luxury real estate agent come from repeated practice and experience. Brand-new agents are probably not going to get a luxury real estate listing so you’ll need to work with the brokerage that’s experienced in selling high-end listings. You may need to share the listings for a while until you really get the experience of how different selling luxury homes is.
Dress for the job you want.
This is an old cliché but it is definitely true when it comes to marketing luxury homes. This is not a sweatshirt and jeans type of agent. This is a high-class, properly groomed and well-dressed agents. While you can still be real and down to earth with clientele, don’t assume that’s the type of client you’re going to get.
Luxury agents spend a lot of money.
This is not a quick photo tour with your iPhone. This is high-end photography, drone photography if necessary, and expensive marketing campaigns. Remember, these properties are tricky to sell so you’ll need to put a little bit of skin in the game to really market. This means you may need some starting capital so that you can spend freely with your initial investments.
Make sure you have the connections that the luxury client will need.
Make sure you can answer questions that the client has about real estate taxes, insurance, appraisals, banking and lending options, common properties, and privacy. Each client is going to be different so you’ll need the assets and connections associated with buying and selling luxury properties.
Understand the details.
Luxury properties are not going to be comparable to traditional homes. You will need to pay attention to all the details including key features of the property, location, and amenities. Think full-color marketing media as buyers want to know as much about a property as possible. Be an expert with the property, the area, the neighborhood, and the logistics they go into a jumbo home loan, cash buyer, equity, and asset protection.
Develop your sphere of influence.
As your sphere grows, so will your capabilities in the luxury real estate market. You’ll want to bill contacts and generate leads through influence strategy. This is where you will generate leads through the people the agent already knows such as neighbors, family, friends, social connections and business associates. This can be extremely valuable because every person in agent meats could become your client. Learn about each person in your sphere of influence and maintain regular contact. Networking with other agents and professionals can help you connect to other buyers and sellers that may be just outside your reach.
Go where the local influencers are. Join groups, social clubs, where the elite hang out even if it’s just the local Starbucks.
Market yourself.
Whether you are a luxury real estate agent or a traditionalist, you will need to know how to market yourself and your brand. Pick a brand that you’re going to stick with so it is recognizable and familiar. Everyone’s marketing is different. If you start to broad you may dilute your marketing and branding. The niche-focused, teach, inform, and be the authority on your branding and your niche.
Farm luxury expires.
While this is always a good idea for just about any type of real estate agent, luxury homes will be more proficient because they are a harder type of home to sell. Luxury homes can take 2 to 3 times longer to sell than the average home. There are simply fewer buyers who can afford the high price tag. Luxury home listings can expire more frequently than moderately priced homes and luxury homeowners that try the for sale by owner approach will really find it difficult to attract a real homebuyer. This may be a great opportunity to prospect for both luxury expired and FSBOs.
Solve a problem.
Try not to be everything to everyone. The wealthy still have certain problems to solve and if you come as their guide, chances are you may get the listing. When you’re clearing your marketing about what problems you specifically solve, clients can discover quickly if they need your services. This goes along with understanding your clientele and what they really need.
Bottom line
Becoming a luxury real estate agent will take time but it’s also important to learn, educate yourself, read up on your clientele, and be the authority in that niche market. If you’re ready to push further into the luxury real estate market, consider joining eXp Realty. With endless potential on your earning capabilities, eXp Realty can provide the platform you need to advance your luxury real estate career.
For more information on how to become a builders agent or learning how to join eXp Realty, contact me at any time.
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