A few weeks back we hosted a Facebook LIVE interview with Stefan Swanepoel – if you didn’t get a chance to watch it you should because we covered some fascinating trends that can impact the industry as we know it.
During that LIVE interview we fielded questions that were being submitted by the attendees and one in particular surprised me.
Not the question per se, but Swanepoel’s answer.
The question was – How many deals does the average Realtor do per year?
Answer: approximately 7 deals/year which averages to $45k-$50k
So if you wanted to earn more than that what could you do?
In business, if you want to increase your revenue you have to increase the number of transactions and/or net more money per transaction. In real estate sales it’s similar as we share in our 3-Steps Ultimate Real Estate Success System … we call it “Compound Marketing” where you generate more buyer/seller opportunities with each listing you take.
We actually have a Special Report that covers this in detail and you can download it here.
Another option is to sell higher-priced listings as in the luxury home market (create a niche) and in so doing generate greater commissions.
Listen to the experts
Before you decide to make that transition into the luxury market there are things you need to know, things that may save you a lot of heartache, time and money. These were shared by some seasoned real estate professionals that are already there!
Here are some tips from Tammy Murphy of RH2L Real Estate Professionals of Dayton Ohio:
- Luxury homes clients are a different kind of clientele with specific needs and wants
- They are paying more and expect more from you
- You MUST know your product, type of construction, the builder, attention to details, what makes that property unique
- Be prepared to invest at 1% of the list price in marketing your listings
- Make sure you have money in the bank to ride out longer selling times – high-end homes can take 6 months and longer to sell and close
Jon Larrance CEO of Denver based Perry & Co. had this to offer:
- Understand how your clientele thinks
- It’s not a must BUT it sure helps if you run in the same circles e.g. belong to the same clubs, children go to the same schools etc.
- Being on the inside and being known goes a long way to help establish your credibility vs. being on the outside trying to get in
- Consider joining a reputable brokerage that is already established in the luxury market AND can offer you the tools and training you need
- Mentor with an agent that is already established – you can learn a lot from the ones that have been there – done that!
Vivien Sharon of Sotheby’s International Realty of Toronto shared this:
- Understanding the mindset of luxury buyers/sellers cannot be over emphasized – how they live, what is important – lifestyle
- Luxury buyers are very sophisticated – they want to know they are not overpaying just because they can, so be prepared with comprehensive CMA’s
- They pay special attention to detail and expect it especially with high end condos – amenities must be impeccable
- Surround yourself with a network of local professional experts e.g. financial planners, tax lawyers, accountants, immigration lawyers, etc., especially if you are dealing with out-of-country buyers.
Here are a few more things to consider should you venture into the luxury niche:
- Dress for Success – you are now dealing with a clientele that expects quality in what they buy and who they work with
- You are your brand – you need to present yourself professionally at all times
- Study The Competition – make it your mission to learn as much as you can about your competitors – how they market, how they present their listings e.g. staged open houses that are an event – catered etc.
- Leverage Online and Offline marketing for exposure
- Attention To Detail – all you marketing, virtual tours, photos have to be perfect.
- Network With Bankers and Private Lenders
The luxury home market can be very lucrative both financially and personally. But as with any new venture, do your research so you know what you are getting into.
If you’re interested in developing any kind of niche market to make more money- whether that be a certain area or type of client- make sure to read a previous article we posted about how to do that. Just click here.
And regardless of the niche you decide to target- don’t forget to touch bases with every person on your list every month – consistently. People respond to a PERSONAL touch regardless of how sophisticated they may be – they’re still people. Remember to use a personal touch in your marketing, and position yourself as a trusted advisor instead of a salesperson. Your clients will see you as a true professional when you show that you have their best interests at heart! Want a way to do this? Check out Service For Life!, and download the free e-course.
2 thoughts on “Ever Thought About Working The Luxury Home Market?”
Very helpful information about working in the luxury market. A great point made regarding how much $$ an agent should invest in marketing and to prepare/budget for longer selling time. At least 6 months for high end homes.
Thanks Julie – glad you found it informative!
All Good Wishes,