It is customary for agents to be enthusiastic about raising their sales price in order to sell houses in the high-end and luxury housing markets. Maybe you've seen a few luxury real estate reality shows, and don't they make it appear glamorous? As a coach to many superstars in North American luxury home markets, I can tell you that what you see on TV shows is not the reality of what happens in the trenches. But you presumably knew that already.
Breaking Into The High-End Real Estate Market
Working in high-end or luxury is not for the faint of heart or the poor of wallet, because the clientele will have high and distinct service standards. Working with luxury real estate clients can be tough, but it can also be a tremendous chance for business. I've seen luxury agents convert one luxury link into a slew of luxury transactions.
You can imagine how severe the rivalry is in this arena. You must be able to identify that special item that you can provide the seller and sell the sizzle of how what you bring to the table is unique to what anyone else can offer them. You must also be able to highlight the property's unique qualities. There are numerous intricacies to successfully showing a premium home that top agents must master.
Choosing Your Luxury Home Market Slice
Develop your market knowledge! Each market has a different luxury price point. You must research the pocket markets and price points that interest you in order to discover the percentage of turnover, typical price range, average days on the market, significant competitors, and the best strategies to break in and get invited to the table.
Luxury Property Pricing
Pricing these properties can be particularly difficult since the property or its location may be so unique that an accurate value cannot be assigned to it. Luxury sellers frequently "don't have to sell" and may hence wish to start a little higher. You'll have to work with them to get them where they need to be. One of the top luxury agents we work with has a method he calls "time over motivation." In other words, if they are driven, he understands that in time he will get it to the point where it can be sold.
Often, luxury agents will work with sellers to create a calendar of price adjustments so that everyone is on the same page about what the seller will do and when. This makes it easier to return to them for any necessary changes.
Obtaining Certification
It is easier said than done to break into the luxury property market. Fortunately, our sister school, The Institute of Luxury Home Marketing, provides a one-of-a-kind accreditation that teaches you all you need to know about being a high-end real estate agent while also distinguishing you from the competition.
The Certified Luxury Home Marketing SpecialistTM (CLHMS) title is recognized as a badge of achievement in luxury markets around the world, assuring affluent buyers and sellers that the agents who have earned it have the knowledge, experience, competence, and confidence they demand.