Think you can’t compete with the area’s most well-known and proven luxury real estate agent? Consider this aspiring high-end home sales superstar.
If you have the money, marketing skills, and persistence, you, too, can be flogging luxury real estate and earning the high commissions that come with it.
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Look For A Luxury Real Estate Mentor.
Listing and marketing a luxury home is so distinct from any other real estate segment that you simply cannot “fake it until you make it.”
You must enter this segment with solid knowledge of how to price luxury real estate, how to market unique properties and a substantial marketing budget.
There is only one way to meet all three of those requirements simultaneously, and that is to work, at least temporarily, for a luxury home specialist.
Even seasoned agents should treat a shift in niche as if it were a brand-new business, so don’t dismiss this idea just because you’ve been in the industry since the Jurassic period.
Though we’ve extensively discussed hiring an assistant, finding a mentor is a completely different story.
Amber Uhren, the owner of Realty Billings, concurs. “By shadowing a mentor, they will not only learn this firsthand, but they will also see how a master handles different situations.”
If your office does not have a “master” luxury listing specialist, or if he or she is stingy with time and knowledge, consider switching to the office in town that does.
Then, be a sponge, soaking up every nuance of the agent’s business, peering over his or her shoulder as she calculates the market value for luxury listings (and asking questions) and accompanying listing presentations and contract negotiations.
Also, inquire about viewing their business plan. Yes, you will require one.
The issue, at least when it comes to determining a list price and a marketing plan, is that there are many, and they are significant.
Because there are so many comparables, the average agent is more familiar with pricing the home on the left. How many comparables do you expect to find in the area surrounding home number two?
So, How Will You Determine The Market Value Of A High-End Home, Even A Rough Estimate?
According to luxury home specialist David Kean of Douglas Elliman Real Estate in Beverly Hills, the first rule of pricing luxury property is to “know everything there is to know about every home in the neighbourhood.”
When I interviewed Kean a few years ago, he said he tours every new luxury listing on the market.
As a result, when he receives a listing and attempts to price it, “I’m not just looking at comps on paper.” “I’ve been through each house and know the layout, and I know if there’s a telephone pole in the way,” he concludes.
Most importantly, he knows and takes note of each home’s amenities. Because while these homes aren’t identical, the amenities of each home factor into the formula for determining the market value of a luxury property.
However, will you know how to value each amenity when comparing a home with a $17-million hand-carved bathroom and a nanny’s quarters to one with two home theatres and a two-lane bowling alley?
You will if an expert has mentored you.
Finally, Laurie Moore-Moore, founder of the Institute for Luxury Home Marketing and author of “Rich Buyer, Rich Seller” (a luxury real estate agent’s guide), suggests that before you crunch one number for your CMA, find out what the client believes the home is worth.
“As I begin my comparable research, is there a specific property sale you would like me to pay special attention to?” could be the question that saves your bacon when you meet with the homeowner to discuss your listing presentation.
Why?
“Perhaps they’ve heard about a neighbourhood sale that they’re using as a guideline for the value of their home,” she says.
“The property they had in mind frequently sold for significantly less than the final sales price they heard through the neighbourhood grapevine.” Furthermore, the house might not be a reasonable comparable,” Moore-Moore adds.
“If you do not ask this question, you may return to your office and perform the best CMA in history, ignoring the property your seller has in mind because it is not a good comparable sale.” However, your seller will look at your perfect CMA and believe you overlooked the most important comparable,” she concludes.
By the way, the ILHM website, particularly the Luxury Insights blog, has a wealth of information on luxury home marketing.
Knowing Your Target Market Is Essential For Luxury Real Estate Marketing.
Marketing to the affluent homebuyer requires much more than mentioning a chef’s or gourmet kitchen. Recognize the brands that ring their chimes, including Crestron, Miele, Philippe, Downsview, and Wolf.
Highlighting a home’s branded features appeals to the lifestyle-conscious homebuyer. And, if you’re not familiar with that lifestyle, Boca Raton’s Senada Adzem, “Florida Power Broker to the Super Rich,” warns that marketing their homes will be nearly impossible. She advises the aspiring high-end property lister to immerse himself or herself in the peer group.
What is the most effective method? We asked Senada about it, and it all comes down to finding a mentor. “They should offer to work for someone already in the luxury industry,” she responded.
Just as not all tract-home buyers are alike, not all luxury home buyers are alike. In fact, they are an entirely different breed that comes in a variety of different, for lack of a better word… “species.”
- Working with affluent young buyers is not the same as working with wealthy retirees.
- International and domestic buyers are completely different in every way, from culture to language and distinct sets of desires in a new home.
- The needs and desires of a first-time high-end property buyer will differ from those of a seasoned buyer.
- Some luxury buyers arrive with a team of decision-makers, ranging from lawyers to accountants, whereas others may be flying solo.
However, a few characteristics appear to be universal. For example, while they may or may not be targets of the paparazzi, most luxury real estate homebuyers desire privacy.
Knowing all of the potential markets for luxury home marketing is one thing. Knowing which keywords to target for a specific listing requires practice.
Then there’s the money issue.
Assume you have the marketing skills to market a high-end home in the right places with laser-focused materials. You’ll need money for drone footage, a snappy Hollywood-style short marketing film, extravagant soirees, or colour ads in luxury lifestyle publications.
What if the homeowners have already left? Do you have enough money to hire an interior designer and stager?
No more taking listing photos with your iPhone or hoping that a lockbox and sign will attract a buyer. A luxury marketing budget is required for luxury real estate marketing.
You’ll need to fund more than just your client’s marketing needs. Your company’s marketing will also cost a lot of money if you want to attract wealthy customers.
From your online presence (a visually appealing website chock-full of QUALITY real estate content and targeted social media exposure) to cultivating a large and diverse network of contacts (cocktails with lawyers, dinner with public relations professionals, treating a reporter to lunch, and entertaining fellow luxury home agents), the adage “it takes money to make money” is more relevant than ever.
It takes time, money, and someone to help you navigate the buying and selling luxury real estate market niche. Begin with a mentor, and everything else will fall into place.
