When we think about selling real estate, we have great visions of mega mansions on the ocean, luxury cars and big paychecks. But just what is a luxury real estate agent, how did they get there and what exactly do they do?
First off, are luxury real estate agents really better than other agents? Probably not. A more accurate description of them would be that this group of agents has decided to work in a specific price point. There are many top-producing, great agents making a lot of money who sell condos for $200,000.
Getting started
So, let’s take a closer look at how one would enter the glamorous world of luxury real estate. First off, this is a decision that you make for yourself. You don’t necessarily have to work up through all the price ranges to get there. Yes, you want to get the needed experience and know what you’re doing so that you can represent luxury sellers and buyers in the best way possible, but there is no waiting. Your path to luxury real estate starts with a choice to work in this part of the market.
Luxury real estate customers will have a lot of knowledge and demand the best service. You have to know more than they do, and you can get this knowledge in many ways, such as working alongside an existing luxury agent or finding a mentor.
So, when you enter this business, just make the decision to be a luxury agent from day one, but keep in mind that you will need to bring someone in to assist you with your first customer,s as you will be dealing with some very experienced buyers and sellers. When selling less expensive properties, you could pull them off by yourself from day one, but not in luxury.
There are many capable real estate professionals who could work in luxury but prefer working in other price ranges. One reason for this is that they feel the lower price ranges are less demanding and there is less pressure with them.
Another thing to keep in mind is that everything is more expensive on the luxury side. Sending direct mail, marketing listings, having a nice car to present a luxury image to your customers and dressing a certain way. Without the correct funding, starting here can be challenging.
When short on funding, think about getting some closings done at some reduced price points to be able to fund and launch your luxury real estate career.
Where are the luxury customers?
So, you have decided to enter the luxury market, you have teamed up with a mentor to assist you with your first few transactions, and you have some money to operate your luxury-focused business. How do you get customers?
Most of the basic lead generation techniques will work here, including direct mail, making phone calls and holding open houses. These activities become a little harder at the higher price points because the space is very competitive and very crowded.
A substantial difference is that there is more of a focus on getting to know and network with high-net-worth buyers and sellers. This group is harder to get on the phone and harder to get to respond to your direct mail. They are just harder to get in front of.
Relationships are key in luxury real estate
You need to look the part and start circulating and networking in the places where people who own and buy luxury real estate are. Country clubs, great golf courses, boat shows and expensive workout facilities are great places to start.
Relationships are key in real estate, but they are front and center when it comes to luxury real estate. You can probably work the phones and get multiple listings in the $200,000-$400,000 price range without knowing the people very well, but this is not as easy on the luxury side. These people want to know who you are. Be sure that when they check you out online and on social media that they will feel comfortable with what they see.
Be the expert (or align with one)
So, if you live the luxury life yourself, this path will be much easier for you. For those of you who don’t, it will be harder to get access into this world, but most can do it if you look the part and can communicate with buyers and sellers at a high level. Be sure to know everything there is to know about the market that you wish to serve. Remember that you need to know more than your luxury customers and they will know a lot.
Should one of these customers ask you a question and you look lost, it’s game over with them. This is why it is important to team up with somebody at the very beginning. You would not want to lose the customer and have them share this experience with other buyers and sellers.
The luxury market is a small circle of customers and the agents who serve them. You should be going to see every luxury property in your market and study the MLS every day. After several of these transactions, you will start to feel really good about being in the luxury real estate market.
Make the strategic decision to be a luxury real estate agent, knowing it will take a little longer to break into. They say in real estate that you stay where you start and there is a lot of truth to that.
The reason for this is that when you sell a $200,000 condo, you start working with those buyers and you list more $200,000 condos in the same neighborhood, and you can kind of get stuck in a price range. You can get typecast. This work will keep you busy, and you won’t have time to go after the better properties.
People will also start to see you as a Realtor who sells $200,000 condos, which could affect your ability to get the higher-priced opportunities. Always start where you want to be when possible.
So, to summarize, decide that you want to be a luxury real estate agent. Put together a plan and keep working it until you get there.
One last thing. Don’t keep changing your mind as you’re executing your plan, as this will just delay you from reaching your goal. Becoming a luxury real estate agent is not easy; it’s actually much harder than it looks, but you will be glad that you stayed with it.