Luxury real estate is a very beneficial field to be in as real estate agents can earn an average of $50,000 per year. In this field of real estate, you can make this much with a single sale. Luxury single-family homes typically stay on the market for 31 days and have a 32% sales ratio. This branch of real estate also has higher commissions to offer. The charm is that while you can earn more, it usually doesn’t require significantly more work, provided you know how to go about it. Whether you are talking about a luxury condo, residential home, timeshare, or commercial building, this area of real estate is far less vulnerable to market swings.
You have to realize that you will deal with ultra high-income people. It’s not easy to get into the segment. To get into the market, you will need determination and tenacity to deal with many rich people and a lot of money.
You have to help your prospect find out if the selection is right for them. You should focus less on price and money and more on what you feel your prospective client is looking for. You should not get attached to making a specific sale for the prospect. If they don’t like something, look for what they are looking for and match them with a property that better suits their feel or desire.
You have to learn that nobody ever needs luxuries. If you sell real estate to wealthy buyers, they might not need it, but there will be reasons why they still want it. As a seller, you have to find out these reasons.
Look into them and see if you have the best solution for them. To be successful, you will have to develop a deeper understanding of why anyone would buy a multimillion-dollar home.
Act like the deal is already completed
When getting into a high-end real estate deal, tackle it like the deal is already done. Doing this is known as an assumptive close. When you tackle it like that, there is no room for nervousness. The deal is done, and it is just a matter of time. Face your first deal like it is your second. Go into your first negotiation as if you have already closed it.
Stay confident and create an experience
In this segment, all your clients would be affluent and looking for an experience. When a salesperson pushes and pressurizes you, you end up upset. People enjoy shopping with their friends.
Make your client meetings an experience where your clients feel like they are buying with friends. Make the meeting friendly. On principle, make it all about your clients. Make them feel listened to.
Each Home is a Product
Build a story and a brand around every home that you list as a potential property. Like high-end stores, create a backdrop for their designs, make a theme and story for the property you are listing. Every house is a product that you need to brand and develop.
Get the Pricing Right
Most agents don’t bother doing this but work with your sellers to price their homes correctly. Most sellers want to get an inflated price for their home, but pricing it right can get you a quick sale. If the property is priced appropriately, it will sell faster.
Create a Bidding War
Once a property is priced right, it will get attention from multiple buyers. These various demands create an opportunity for the buyers to raise their prices to get the property. Such a situation creates hype and increases prices as buyers compete to get a winning bid.
When To Close
Unlike what you may have learnt, the closing of a real estate sale does not happen at the end: You cater to your clients, you show them options, you let them think about it, and then you close. Learn to work for the deal’s close from the very beginning of your relationship.
You have to set down expectations for your clients, what the entire process will be like and what alternates and choices they can go for. The more parameters you set down at the start of your relationship, the simpler it will be to get a final go-ahead from the client. Train your clients to agree with you all through the association.
Make sure that you don’t come off as pushy or too desperate for the sale to close. Keep an arm’s length, and don’t get too emotionally attached to a particular listing. This does not mean that you lose control of the process or the client. You have to retain your control of the process but with some finesse.
Qualify the Prospect
Not every prospect can be suited to your client profile. So be selective about whom you work with. If they don’t fit your client profile, refer them to somebody else. Saying no to a prospective client will give you an edge. Stay organized with your clients using real estate CRM software to ensure a steady pipeline of qualified prospects that you can follow up with.
Familiarize yourself with luxury
To work in this market, you have to be comfortable and familiar with your clients’ lifestyles. You have to be aware of what issues and luxuries your clients are dealing with and their concerns. If you aren’t mindful of how your clients live and what they expect from their housing, you might make a blunder. Make yourself familiar with luxury by sitting in the lobby of a high-end hotel. Develop an awareness of the world they are living in.
Dress the part
Make sure that you also dress for your job. This goes for not just during the close, but all the time. You never know when or where you might come across your next prospect. So always turn up as the best-dressed version of yourself. No matter where you are. Being a luxury real estate agent should be part of your identity.