Written by Debbie De Grote
It is very common for agents to be excited about increasing their sales price to sell properties in the high-end and luxury home market. Maybe you’ve watched a few of the luxury real estate reality shows, and they sure make it look glamorous, don’t they? As a coach to many superstars in luxury home markets across North America, I can tell you that what you see on TV shows is not the reality of what really goes on in the trenches. But you probably already suspected that.
Keep reading for real-world advice on how to claim your slice of the luxury home market.
Breaking into the high-end home market
Working high-end or luxury is not for the faint of heart or the light of budget, because you will discover that the clientele will have high and unique service expectations. While it can be challenging to work with luxury real estate clientele, it can also be a great opportunity for business. I have seen luxury agents leverage one luxury connection into many luxury deals.
In this arena, you can imagine that the competition is fierce. You will need to be able to find that special something you offer the seller and be able to sell the sizzle of how what you bring to the table is different than what anyone else can offer them. You will also need to be able to showcase the special features of the property. There are many nuances to properly showcasing a luxury home that top agents have to get just right.
Choosing your slice of the luxury home market
Become a market expert! Each market has its luxury price point. You must study the pocket markets and price points you are interested in to determine the following: percentage of turnover, average price range, average days on market, major competitors, and the best ways to break in and get invited to the table.
Pricing luxury properties
Pricing these properties can be extremely challenging because the property or its location may be so unique that it is difficult to put an exact value on it. Luxury sellers often “don’t have to sell” and therefore may want to start a little higher. You will have to work on them to get them down to where they need to be. One top luxury agent we coach has a strategy: he calls it time over motivation. In other words, if they are motivated, he knows that in time he will get it where it needs to be to get it sold.
Often luxury agents will build out a timeline of price adjustments with the sellers so that they are in agreement as to what the seller will do and when. This makes it easier to go back to them for necessary adjustments.
Breaking into the luxury home market is easier said than done. Fortunately, our sister school The Institute of Luxury Home Marketing has a unique designation that teaches you everything you need to know about being a high-end real estate agent and sets you apart from the competition.
Recognized as the mark of accomplishment in luxury markets around the world, the Certified Luxury Home Marketing Specialist™ (CLHMS) designation assures affluent buyers and sellers that the agents who have earned it have the knowledge, experience, competence, and confidence they require. Learn more here.