1 in 4 people that belong to the wealthiest top 25% of the population plan on investing in luxury real estate this year, according to yougov.com.
If you take the effort to master luxury homes, it pays off more than any other niche.
There's also a number of reasons that a lot more opportunity will be available for luxury home sales this year.
It is easier for buyers to get large mortgages this year.
A few big companies are expanding their largest mortgages this year. It's the first time in 10 years they have raised them.
This just deepens the luxury market.
This market rises after elections.
It is stagnant in the year and then months coming up to the election. The time after the election becomes a return to normalcy for the whole market, especially the high-priced homes.
Over the first few weeks in 2017, there was a rise in New York luxury contracts. A total of 26 were signed for 4 million or more dollars according to Olshan Realty.
It was the most in three years there. Similar windfalls happened all around the country.
Making lasting connections with leads or clients in this market should be your goal.
It's obvious why referrals, repeat listings and any other connection from these types of owners is so beneficial.
Luxury owners depend on referrals more than other owners. They network with their rich friends, so there's a huge benefit in being the agent they all use.
This is where you should market for the short term and the long term.
You see a Realtor’s sign in front of a big home. Then you drive a little further and see the same agent’s sign again.
Then, you turn a corner and see another with that agents face on it, in front of a mansion.
That agent is known by the neighbors as well. They get all the referrals for any of these houses.
Once these neighbors see someone getting a home sold for a great price, they like to stick with the proven success that you provided.
So how do you get in that position?
Know the type of luxury owners and know how to work with them.
There are three different type of owners and prospective owners in the luxury market.
Once you know how to identify them and target them specifically you become so much closer to winning their business, then their repeat business and referrals.
If someone isn't buying a luxury home right now doesn’t mean that they won’t welcome information about the upscale market.
Every time you reach out to a lead is an opportunity to give them value.
This matters even more with expensive homes since a lot of the time the owners are extremely patient.
Here are the types of luxury homeowners and how to work with them:
Understanding Old-Money Customer
These are the owners who are part of the older generation of home buyers. They may prefer to work with a veteran agent.
These owners are completely old school and want an agent who aligns with their values.
They are somewhat informed about the market but lack knowledge in marketing and most technology. This is one of the ways you can win them over.
Come across to these people as a legitimate expert and someone who will work extremely hard.
If you can prove your competency then they will trust you. Show them how you will use your tools to market their home.
This could be the toughest group of owners to target since they can be looking for 20 years experience or so.
Dressing in your finest clothes and being well-groomed makes a difference.
If you're a guy with long hair, that's the type of thing to turn them off. Using slang or improper language may turn them off as well.
If you can show them how you'll get the home sold and prove your worth, they will list with you.
You competency and value are the most important thing to them. Hard work shows through here.
Understanding Self-Made Customer
This group is the easiest to work with. It can include doctors, lawyers, and other higher-paying professions.
All of these people are extremely confident and competent in life.
Since they are responsible for their own success, they understand the results are the only thing that matter.
This makes them much more laid back compared to the "old money" owners.
If you show them your selling and marketing process and they like and trust it, it can become more of informal business relationship.
That makes them the easiest to target and work with. You can get away with not being in your fanciest clothes each meeting.
But if you don't come through with your marketing plan and success isn't found, a second chance is not likely.
Prove to them that you are the realtor who gets it done with your listing presentation.
They are most likely looking for an agent who simply puts their knuckles to the pavement and gets the job done.
This is why they are the easiest to work with.
Understanding Fake Money Customer
These are owners who got rich quick. Or, to clarify, they are "wannabe" rich.
But, they're not actually rich, because they spend every dime they make - as fast as they make it.
They are contrary to the other two types because they don't appreciate long term wealth. They're much more interested in fast gains than long term wealth.
They mostly care about how you can help them get even richer quick.
They are also the worst to work with since they can be whimsical. These owners won't care if you do it by the books, they just want it fast and for a lot.
Winning these owners only takes you promising to sell the house for more than anyone else.
There are so many problems with that. If you can't get that amount of money, they won't be reasonable.
Don't be conservative when pitching yourself to these leads, but be cautious when you work with them.
Since more money is on the line, your knowledge in the details matters a lot to all these owners.
When you pursue or market these homes treat them like your other listings and leads, just be more detailed and prepared.
Staying up to date on the market and the area is of particular importance.
At the end of the day, the price is the most important factor for these owners. Some want it to be right, others will want it too high.
If you lack knowledge of the area and market, they won't show you the time of day.
A balance of old ways and new methods to market homes is a good idea with all these types owners.
You have to know what type of owner you are pursuing.
If you are going after someone who is fake rich but mistake them as a self-made owner, then you probably won't appeal to them.
You may even want to incorporate some high-end staging technique's in these homes. Staging them with nice cars is not unheard of.
You can offer that in your listing presentation.
Appealing to these owners agendas is how you separate yourself from other agents with these homes.
But everything else is still similar to your other listings and pursuits. Show them your value and what you will get done for them.
If you had something of value that you could give them with your face on the cover, any of these owners will be impressed.
It wouldn't matter their age or background when you paint yourself as the authority everyone listens.
We use this method with books here at Smart Agents. When an owner sees you as the expert, they want to work with you.
See below about how to get that and use this program.
What if you left a book that you were the author of with these owners?
Books have a huge perceived value. They don’t get thrown away.
They can get tucked away somewhere, but most people aren’t going to toss them in the trash. They’re worth something, and they’re worth something to the author’s name.
Do this and you will position yourself as the authority in your market. When you give away your book, it will separate you from your competition.
That’s how a Smart Agent thinks!
Want to get a free sample of the book that will get you more listings? Click the link below.
Joe Nickelson is a real estate professional dedicated to helping home buyers and sellers achieve their dreams of owning property, and helping real estate agents stop using the sometimes-vicious tactics that weigh on their consciences. He believes that the Smart Agents books will, quite literally, change people’s lives for the better. Check out his full bio here!