Most real estate agents don’t make six figures in a year unless they are experienced luxury real estate market agents. Do you know how to break into the luxury real estate market?
The luxury market is different from the local real estate market. It takes time to move into the world of luxury listings from general real estate knowledge. Our team at Local Leader® compiled a list of basic skills to expand your influence as a real estate agent. With these skills, you’ll be able to break into the luxury market.
1. Learn About Your Local Luxury Real Estate Market
Understanding the local real estate market isn’t enough to prepare you for the nuances of listing luxury homes. Pricing for luxury homes isn’t measured in price per square foot, for example. Instead, luxury homes are priced based on the overall value of the home, its premium location, and available amenities.
Do you know how much features like an infinity pool or a full summer kitchen can improve a listing’s value? How about stone slab flooring? Luxury materials, finishes, custom architectural features, and built-in smart home technology can all boost a home’s value. In fact, each additional feature contributes the a home’s overall valuation.
However, did you also know that these features are relative? Imagine that most of the homes in the community have infinity pools, for example. If your luxury listing includes one, it’s no longer a standout feature.
One of the key benefits of unique features for luxury homeowners is the ability to brag about them. The black marble floors in the seventh bathroom with the waterfall shower may be an exciting feature. This is especially true if none of the surrounding neighbors have them.
2. Develop Your Luxury Real Estate Agent Image
You’ll never get your foot in the door unless you develop your image into that of a luxury agent before you enter the market. Update your branding across your website, business cards, and marketing materials to convey a luxury feel for prospective clients visiting your site or looking at your business card for the first time.
You also need to update your personal style to appeal to high-income professionals. Your clothes should fit well, and your shoes should be clean, functional, and stylish.
Don’t show up to a meeting with a high-profile prospect in a suit that’s too big or a shirt that’s too tight. Keep backup shirts and jackets in your car in case you get a stain at lunch or sweat through your shirt during the day. Also, keep travel deodorant, cologne or perfume, and a travel toothbrush handy in your car to freshen up throughout the day as necessary.
3. Team Up With an Established Luxury Agent
If you don’t already have experience selling luxury homes, no luxury homeowner is going to list with you. Ask an experienced luxury agent to let you co-list with them. Offer to do most of the legwork and take a smaller percentage of the commission. Present your strengths in helping them sell a new listing to get a portfolio piece for future listing appointments with potential luxury home sellers.
You may need to co-list on your first few luxury homes to build your expertise in the local luxury market. Not every high-income gated community is the same, and sometimes luxury homes aren’t even in a community. Waterfront homes can be especially scattered, ranging from 2-bedroom stilted shacks to multi-million dollar turf-lawn compounds, often right next door to each other.
In cases like this, having the guidance of an established luxury real estate agent can help you learn how to break into the luxury real estate market, no matter the location of the home.
4. Prospect Expired Luxury Listings
When you have some experience, start contacting owners of expired luxury listings. Many luxury listings sit on the market for years, changing hands between listing agents and taking much longer to sell than typical area listings.
You might be able to persuade the owner that you have a better listing and selling strategy than previous agents. Present your co-listing successes and show how you planned the winning strategy to sell those homes at or near the asking price and in a timely manner. Position yourself as the area expert in luxury listings.
5. Get Certified in Luxury Homes
You can become an Accredited Luxury Home Specialist or Certified Luxury Home Marketing Specialist to prove your knowledge, skill, and experience in selling luxury homes. To become accredited, you will need to take the course, pass the certification tests, and close on two or three luxury home sales within 24 months of your certification.
ALHS or CLHMS™ certified agents receive training in several skills, including:
- How to stage and show luxury homes
- How to interact with high-net-worth individuals
- National and regional luxury home trends
- What luxury home buyers look for
- Marketing strategies to get new luxury listings
- Networking with high-income sellers and buyers
6. Expand Your Marketing Strategies
Marketing for luxury real estate listings is not the same as marketing for typical listings in your area. Luxury listings need custom video tours, including drone footage, stabilized gyroscope walkthroughs, and professional re-timing to adjust and smooth dropped frames. Photos taken on your cell phone won’t cut it when you’re listing a home for over a million dollars.
You also need to consider where you advertise. You can sell a multi-million-dollar Miami home to someone who already lives in Miami. However, you’re much more likely to sell that home to someone from New York or Chicago who’s tired of winter and wants a vacation home in South Florida.
Instagram, print ads in high-end publications, and networking with previous clients are your top options in luxury real estate marketing. Learn to use these tools effectively to your advantage.
Break into Luxury Real Estate With Become a Local Leader®
Now that you know how to break into the luxury real estate market, check out these ways to get more real estate listings and begin your journey. For more information on building your luxury real estate business, sign up for the Become a Local Leader® newsletter. We publish the best tips from top real estate professionals.