Some real estate agents are generalists, and some focus their efforts on one particular niche. One of the most elite of those niches is luxury properties.
Real estate agents who specialize in luxury real estate deal with high net worth individuals (HNWI). And there’s more to working with these people than simply showing expensive homes. In this article we will shed the lights on what it takes to become a real estate agent for the super-rich.
It’s in the Details
The biggest trait that successful real estate agents share is the same for luxury agents; to pay attention to the smalles details. “Luxury homes are usually large and can't fit into the normal or wide-known price per square foot estimate, so you need to be aware of the little features in construction and finishes from the structural components.
Think of the last time you bought a car or bike. Luxury cars have color marketing books and online videos that explains the exterior design, interior design, engine performance , safety and other features. While consumers always are more patient when it comes to a future home purchase due to lack of explanatory materials and reviews compared to luxury cars. You need to understand the unique features of a home to convince the buyer that the home you are looking to sell has been thoroughly worked on to the smallest detail to justify the price tag it holds.
Most of the times, super-rich clients are more demanding than other clients. They are looking for certain details that can suit their style and status-quo, so the way to be heard and to meet their demands is to be detail-oriented and highly-prepared. “Take time and do your homework well before the meeting” Be specific, timely with your information, and be the expert whom they can trust. Be organized and concise.
Listen for the questions and prepare your answers, anticipating questions before they are asked, and really listening carefully to determine what questions and concerns may be in the clients head (even if people don’t ask outright), it is essential to keeping clients well-informed and happy.
A well-rounded Expert
You do not need to be a wealthy and well-connected real estate agent to find – and work with rich clients? But you do need to be an expert in the market to be able to talk intelligently on the area and the available options for sale, and to have been able to have a list of the homes that are for sale, as well as the homes that has been sold, and maybe to whom, as some clients base their purchase based on whom their neighbors are or a famous person who used to own the home before!
Agents should always be ready to share detailed information about the neighborhood, and the more detailed information about the local community you provide the better to convince the buyer. Including information about, art and recreational opportunities in the community; restaurants; golf clubs and so forth. A lot of the these types of clients are going to consider having home offices, so they also need to know about things like internet services and flight information from local airports.
Sphere of Influence
A famous and known way real estate agents to build contacts and generate leads is through a real estate sphere of influence (SOI) strategy that focuses on generating leads through the people the agent already knows, from family, friends, neighbors, classmates, business associates and social contacts.
Developing a sphere of influence becomes a very important aspect to agents working with the super-rich. Because most people will buy, sell or rent property at some point in their lives, every person an agent meets could become a client – not necessarily now, but perhaps at some point in the future. Try to learn more about each person in your sphere of influence – and get into regular contact with them – can make a big difference. Sometimes, the right buyer may not be actively looking for a home, but will make a quick decision if the right property comes along.
Networking with other agents and professionals in your area or community even outside your area is also a highly rewarding practice. You need to have a network of agents both in and out of the market, to help you connect buyers with sellers. Building a qualified team who can quickly address any property-specific questions and concerns can be indispensable. Pick your team wisely, and rely on a network of professionals to assist you, including inspectors, contractors and engineers.
Real estate agents use a multiple tools to market properties to potential buyers. Most of the times these marketing techniques are similar whether they are for standard or luxury properties. In general, you have the same tools: professional photography, floor plans, details of the home, surveys, history of the property, videos and so forth, but the more details available the faster you can address the clients questions and needs.
One difference with luxury and expensive listings is that they have longer lead times and tend to have longer days on the market. So make sure to use more high quality advertising in the luxury market, know where those rich people are looking for homes, look to accompany your listings in luxury magazines or in events and places the super-rich are frequently visiting.
Breaking into the highly competitive luxury real estate niche can be overwhelming. It’s important to be yourself and remember that you don’t have to be wealthy and well-connected to be successful in the luxury niche. We are not judged by the amount of money that we have.
Being prepared up is one of the best ways to overcome the difficulties in this market niche, getting to know every detail about the property, the area, the community and the client. Don't be intimidated; be prepared. Get to know what is important to that client: Is their pet their favorite child? Are schools important? What are their hobbies and things that are happening in their lives that are important to them?”
The Bottom Line
Building a career in the luxury real estate market can be emotionally and financially rewarding. If you're just learning the field, watch how your agency's most productive agents work with well-to-do clients. Another route to mastering the luxury market is being hired on to the sales team of a highly successful luxury-market agent. You may end up staying with the team or moving on, but you will have learned from top people in the industry.
Successful agents to the super-rich focus on the details, become experts on each property and the surrounding communities, learn about each potential client and always listen, listen, and listen more! then quickly respond to – each client’s questions and concerns.