How to Sell Luxury Real Estate to High-End Buyers
Real estate agents work on commission, making money the higher the home sells. It stands to reason then that the highest commissions are in luxury real estate.
You need to get 3 or 4 high-end listings, and you are good to go then, right? Much easier said than done. Competition is fierce, and homeowners want agents with experience and an understanding of how to effectively market and sell a luxury listing.
What is an eager real estate agent to do then? Here’s how to sell luxury real estate in a competitive market:
1. Build a Luxury Real Estate Brand
Putting your picture on some bus stop benches isn’t attract the rich clientele you are looking for. You need to build a brand where you emit sophistication and expertise in the high-end market.
Build your brand through a stunning website and a large social media presence where you are knowledgeable about the luxury lifestyle. Talk about socialite gathering places like gallery openings and fashion shows and what high-end restaurants are in the area. Write professional articles about the luxury market and post many pictures and videos of yourself around this wealth because you have to fake it until you make it.
2. Rub Shoulders with the Elite
You need to get face to face with your prospective clients, and that is by attending the events they attend.
Support charities and go to their fundraising galas so you can spark up a conversation with wealthy people. You already know their lifestyle because of your research for your website. Buy a membership at a prestigious golf club and meet people there too.
Wine tastings, car clubs and art shows are more great venues where you meet and greet those who own luxury property. Don’t be a poser, though. Join a club you are interested in because it’s easy to spot a faker.
3. Use Your Network to Bring in Buyers
Now is not the time to go it alone and hope for both ends of the sale. Luxury real estate needs to move fast, so contact all your real estate peers and get them to bring their high-end clients for a showing. Forget the open houses. Instead, put on an event where agents bring out their buyers for a nice evening where there is food and drink. This keeps people mingling and looking around and only lets qualified buyers through the door.
If your goal is to dominate the luxury market, you need to set yourself up for success. Become the go-to luxury real estate agent and watch clients seek you out because of your brand. Then, build on each successful listing. You can use tools like a real estate CRM to help manage your expanding network. CRM is an efficient platform to organize, coordinate, and analyze information related to your real estate contacts.
4. Shadow a Proven Real Estate Agent
Find yourself a real estate agent selling high-end homes and offering to help out for free. It is an incredibly smart use of your time because you will learn how a seasoned pro operates and meet high-end buyers and sellers. They will see you are hungry and may get you involved in their open houses and marketing, and down the road, if you are lucky, you may get a co-listing with them.
Okay, now you got your foot in the door and have a luxury listing. How do you sell it?
5. Know How to Price a Luxury Home
It may seem easy. Look at the comps and put it on the market within the ballpark. Luxury real estate is a different beast, and there are many other factors to consider.
Learn about high-end finishes and architecture and what is trending in the luxury market. You need to know what the clients like and help them envision what they could have. Some clients invest a lot of money in their luxury homes, and it is difficult to help them realize the true value based on the market.
Always be honest with them and let them know how hard you will work to get their price. Then do that hard work.
6. Next-Level Real Estate Marketing Material
A few shots on your iPhone aren’t going to cut it for the luxury market. You need to bring high-end photographers, videographers and drone operators to create outstanding media. Produce lots of imagery, including virtual tours along with stunning printed marketing material. This way, interested parties can spend time looking at everything you produced. Real estate is a high-end purchase, and they need to see a comprehensive visual showcase to help them spend their money.
7. Bring in a Professional Stager
This will cost you money, but it will be worth it when you sell the home. While most high-end properties are fully furnished with expensive pieces, you need a stager that knows how to arrange furniture and decor to appeal to the broadest and richest clients.
Assure the seller that you and your stager know what it takes to sell a luxury home and what visual aids are needed to make their home irresistible. It may mean removing the client’s furniture and bringing in new pieces, so be confident in your stager and let them do their magic.