Did you know realtors that use advanced technology for marketing have 2% higher commissions?
If you're wondering how to become a luxury real estate agent and make more money you've come to the right place. We are going to tell you everything you need to know about breaking into the world of million-dollar homes and luxury properties.
It can be challenging to go from selling single-family homes and condos to large luxury homes with basketball courts and Olympic-sized swimming pools, but we are here to help. Keep reading to find out what you need to know about being a luxury real estate agent.
Become a Real Estate Agent
The first step to selling luxury real estate is to become a real estate agent. You'll need to find out what your state requires to get licensed. Once you do that and you're able to sell properties you'll need to get some experience.
You may want to jump right into selling luxury homes but you need to become an expert first. You need to understand the entire process from start to finish.
Luxury buyers and sellers will be more likely to work with you if you have some experience and a history of making sales. It will give you insight into the dos and don'ts of basic real estate that also apply to luxury real estate.
One challenge many new realtors face is building relationships and meeting potential clients. You must go where they are.
Attend Charity Events
Many wealthy people will attend charity events and auctions. These events are great places for networking. Start by picking a cause that means something to you.
If you ever need a conversation starter you can discuss your mutual passion for the cause. It's a great way to connect with your clients about something other than real estate. It will also show that you're generous and care about helping the cause.
Get a "Fancy" Hobby
While you want to be authentic, sometimes the phrase "fake till you make it" holds true. Trying a new hobby that the wealthy partake in is another great way to meet people and market yourself and your services.
You can join a country club and learn how to play golf or tennis. You then have some insight as to what your potential clients like. Have a list of luxury properties that have tennis courts or putting greens to show people.
High-end art or car shows will attract the clientele you're looking for too. You can then highlight the houses that have multiple car garages.
Exclusive or high-end gyms can be an easy place to market. There you can show off the homes that have gyms, large swimming pools, and basketball courts.
Telling people you're a luxury real estate agent isn't enough - you have to show them! This doesn't mean you need to buy a bunch of designer bags and clothes. However, your appearance matters; be sure to dress and act professionally.
Marketing yourself also includes your website, business cards, and social media. Look at other luxury agents in your area. Look at their branding and take notes.
Hiring a graphic designer may help achieve the luxury feel you're looking for. When posting on your social media, know what your ideal clientele wants to see.
Know the Market
If you want to be successful in selling luxury homes you must know what your clients need and want. They may have questions and concerns that others don't. You need to be an expert in your field.
Be sure to offer your clients solutions to the problems they face. If they are worried about security or privacy, fix that problem for them.
Many people buy luxury properties as investments which can require extra documentation. You'll need to know the local and federal laws surrounding second homes and rentals.
When you're first getting started you might find it challenging to break through into luxury real estate. Buyers and sellers won't trust you with their millions if you don't have any creditability.
A great way to build your reputation is to work with other established agents. To do this you'll need to offer them something, it'll need to be a beneficial relationship for both parties involved. One way to do this is by offering to do the majority of the work and take less pay.
Forming partnerships doesn't only include other real estate agents. You should also know people in the area that you trust to stage and photograph houses. You can also work with others in the industry inclosing title and mortgage companies.
Pay Attention to Details
When you're busy working and selling houses, it can be easy to forget or neglect the small stuff. That could be detrimental to your business.
You may think because these million-dollar homes are so large the small details don't matter - but they do. You need to be educated so you can relay the information to your buyers. They will appreciate the time you took to research the things that are important to them.
For example, if your buyer has a fishing boat, show them homes on the water with docks. Research the fishing and boating laws and regulations in the area so that if they ask questions, you have answers.
If you're selling a historical home, you should be able to tell your client about restoration restrictions. Whether you're in the mountains, by the beach, or in a city you should be able to give local recommendations.
If your buyers are moving in from another city, they likely won't know anyone in the area but you. They may ask you for restaurant or gym recommendations and you need to be able to suggest places they will like. Even knowing traffic patterns and the routes to take can make a difference.
Look for Expired Homes
When a seller and an agent make a contract there is an expiration date that is set. If the house is not sold by that date the seller can renew with the same agent or move on to someone else.
Luxury homes typically take longer to sell because they are more expensive and there's a smaller niche. Be on the lookout for expired homes. If you believe you can sell the home, reach out to the seller.
You'll need to have a plan to sell the property already in mind before talking to the seller. You can send your potential client a letter in the mail with your credentials and testimonies from people you've previously worked with. It may also be beneficial to include your marketing strategies.
Learning how to sell luxury homes is not as easy as it sounds. It takes a lot of hard work. You must be dedicated to succeeding.
You won't always be motivated to go to networking events, you might not feel like sending out marketing emails, but that's what it takes to make it.
You must give yourself some time. You might sell your first luxury home in your first few weeks or it may take you a couple of months. Remember to stay focused.
Consider New Construction
Marketing and networking with sellers who are trying to sell your existing properties are great but there is another option. Consider connection with builders who design and construct luxury homes. New construction can be a whole different ball game but once you're in you are in.
If you sell a new construction home and the developer was impressed and liked working with you, they will typically give you more listings. They may even pass your name along to others in the industry.
Benefits of Being a Luxury Agent
There are many reasons why people want to be luxury agents. The possibility to make more money is a huge factor. You may also get the chance to work with international buyers.
It can easily turn into a long career. You also get the opportunity to tour mansions and large properties that the majority of people don't get to see.
Luxury Real Estate Agent
If your dream is to sell luxury real estate, now is the time to make the jump. There are many different ways you can get started in the industry. It may take some time but your hard work will pay off in the end.