Do You Have The Referrals To Move Up To Luxury Home Sales?
If it was easy, everyone would be doing it. Thankfully, we have some advice.
If you want to do real estate right, then you need to consider every client a “high-touch” client.
Of course, that’s easier read on a blog than done, isn’t it?
Well, if your goal is to work in the luxury home market, treating every client that way isn’t a choice—it’s an expectation.
The leap from selling traditional homes to luxury properties isn’t one many agents land on the first try. The big homes are often few and far between, and the people that own them tend to know each other. That means you need to become comfortable with referral marketing, know where to network, and understand an entirely new set of expectations.
And all that means taking a new approach to your business.
Referrals Win The Day
While it may sound uncouth, it’s important for luxury real estate agents to use those who like them to their advantage.
That’s easier to accept in the luxury market because most of your new clients will be very comfortable with the lexicon of business. They know it’s about doing what’s best for their money, not necessarily what’s best for their social circle.
The move to luxury homes starts with winning that first big listing or buyer, the one that’s well above your market’s median price range, maybe even your biggest to date. When it closes, and your client is happy, it’s time to help them help you by finding ways to earn their recommendation.
The most effective method? Ask them for it. Also, ensure they’re reminded of you by plugging them into your Adwerx Sphere, ensuring they see your branding when they’re online.
Additionally, if you’re on the housewarming party invite list, ask if you can pick up the catering, or maybe even the bar tab. Go out of your way to have a presence at the event; and do the same in any place where your client’s friends will be. Don’t over-do it, but don’t be reticent. No one wants to trust their largest investment to a wallflower.
Buyers and sellers in the luxury markets have a different set of expectations for real estate agents to manage. In short: you need to know what they want before they tell you they want it.
The most productive way to manage this is to leverage your initial meeting for all its worth. Find out exactly what they’re looking for in a home or a listing agent. Ask about specifics, show them current listings to measure reactions, and ask them why they want a new agent. Be frank, but professional. Most clients in the luxury market are pressed for time, and will appreciate their agent wanting to know as much as possible from the beginning.
The goal is to make it easy on your client, help them avoid surprises, and consider their time precious. Granted, a fair amount of instinct will be needed when it comes to recommending houses they should see or offers they should entertain. You may lose one or two leads as you learn how to juggle needs and remain flexible when addressing challenging demands.
Can it get tough sometimes? Absolutely; but that’s all part of working in the luxury home market. If it was easy, every agent would be doing it.
Know The Trends
Luxury home buyers tend to emulate the “Keeping up with the Joneses” mentality. Except they don’t want to merely keep up—they want to blow by the Joneses.
It’s important for agents moving into luxury to be aware of interior design trends, room features, and in general, high-end home amenities. Whether it’s an in-home wellness suite or a four-car garage for an Italian supercar collection, it’s your job to know what’s popular in your clients’ price ranges. Floor finishes. Guest houses. Landscaping. Be ready to field questions about homes that have fixtures and technologies not commonly found in a market’s median price range.
The more you know about what’s hot in home design, the more credibility you’ll have in that range of the market.
Lastly, remember to consistently measure your marketing efforts. If it helped you make the move from traditional home sales to the luxury market, it’s probably worth keeping. The differences will be in your messaging and audience numbers, as the luxury market is smaller, but often much quicker to make decisions.
In the end, it all comes down to simply being a good agent. And paying a bit more for your closing gifts.