How to Become a Luxury Real Estate Agent – The Definitive Guide
Luxury home sales increased by 60.7% at the end of 2020, according to Forbes. If you want to get a piece of this pie, you should learn how to become a luxury real estate agent.
If you would like to be a successful luxury REALTOR or real estate agent, then you need to be good at finding potential clients, interacting with them, and convincing them to list their property with you. I have been successful in growing my business by doing these things, and now I am going to tell you how to do it as well.
1. Become a Licensed Real Estate Agent
If you want to be a real estate agent, you need to get a license.
Before you can become a licensed real estate agent, you need to satisfy your state’s requirements. These might include taking a pre-licensing course and passing an exam. Once you have completed these steps and have been issued a license, you can start practicing.
The Real Estate Express website is a good place to start your search for information on becoming a real estate agent.
2. Get Some Real Estate Industry Sales Experience
you need to have some experience in sales in order to target luxury home sales. Handling the sales process from start to finish is something you should be familiar with. Consider joining a real estate brokerage that will assist you in beginning your journey to reach your goals.
You cannot become a successful real estate agent targeting the luxury home market without first having a strong foundation in basic sales. Many agents make the mistake of assuming they can target high-end clients without first developing their skills. It is essential that you become a successful real estate agent before attempting to break into the luxury home market. Once you have established yourself, you can begin targeting wealthier clients and homes in the luxury market.
3. Find the Luxury Buyers and Sellers
If you want to be successful, you need to put yourself in situations where you will meet successful people. Find out where rich people in your area like to spend their time, and make an effort to be there too.
Choose a Starbucks that you like and go there every morning. Talk to as many people as you can. Try to keep the conversations casual so you don’t look desperate.
As you talk to the person, try to steer the conversation towards real estate. Ask them about the neighborhood they live in, or a popular local home that just sold. You can also talk to them about their work, and then about yours. This will help guide the conversation towards real estate, and you can mention your services.
4. Learn What High-End Clients Need
Another way to reach the luxury real estate market is to solve a problem that a luxury client might have. Wealthy property owners want information about these types of problems:
- Legacy planning
- Real estate taxes
- Asset appraisal
- Banking and lending
- Asset preservation
- Common property
- Prenuptial agreements
- Asset privacy
You should focus on one topic and learn as much as possible about it. This way, when a prospective luxury client comes to you, you can present the solution to the problem they have.
If you follow these tips, you’ll be more likely to land new clients than your competition.
Once you know what your problem-solving tactic is going to be, create a marketing mission statement around it. I might recommend something like this:
I help rich people keep their land and buildings safe and help them make a lasting family name.
5. Brand Yourself an Authority and Start Teaching
Once you have learned as much as you can about a particular problem, take your knowledge one step further by creating an educational course and offering it to luxury clients. This way, you are not just a luxury REALTOR, but also an educator.
When you share your knowledge with potential buyers or sellers, you are perceived as an expert. This is an effective form of marketing because your educational materials can also be used as marketing tools.
If you host educational sessions on luxury homes, wealthy people will come to learn more about the topic. When they have an expensive home to sell or want to buy a new property, they will think of you as a luxury home specialist and you will get a new potential client.
6. Take the Luxury Homes Certification From NAR
If you want to improve your experience and knowledge to help you land high-end buyers or sellers, you should consider taking the Luxury Homes Certification (LHC) course from the National Association of Realtors. This is an online class for real estate agents who want to work with the most affluent clients.
This course will teach several things, including how to:
- Work with high net worth clients, including ultra-high net worth buyers or sellers
- Promote and market yourself in the luxury home market
- Show luxury properties
- List luxury homes
Once you have completed the course, you will be given a one-year subscription to the Luxury Home Council. This can also be useful for marketing your luxury home.
7. Get a “Rich People” Hobby
If you want to get ahead of other agents in your area when it comes to luxury real estate, it’s a good idea to get to know your potential clients before they start house hunting. Luxury buyers usually partner with a broker or agent that they have some personal knowledge of, or that someone else with a luxury home has recommended. So if you can build up a relationship with a luxury buyer before they’re ready to start looking for a property, you’ll be in a stronger position to win their business.
The best way to attract wealthy clients is to find a recreational outlet that they would also choose. Luxury lifestyles often leave quite a bit of room for recreation, so make your recreation the same as your potential client’s.
If you want to be the agent that high net worth individuals choose when they are ready to buy or sell a home, you need to start interacting with them on a personal level. When you are at the track or ski lodge, you can let your fellow hobbyists know that you work in real estate.
8. Target Expired Luxury Listings
Listings for luxury properties tend to expire much more frequently than regular listings. You should go after these expired luxury listings. Figure out why they expired, then approach the seller with an alternative that will help them market their property more effectively.
You should focus on FSBO luxury listings, as most luxury real estate owners don’t know how to market their property, resulting in the listings underperforming. You could offer to be their luxury agent, and many clients would be happy to let you take over.
If you’re trying to get an expired listing for luxury real estate, you need to demonstrate to the owner that you’re an expert in that particular market. Your client wants to be confident that you will be successful where they failed, so show them why you are the luxury expert they need.
9. Market the Luxury Lifestyle, not Just the Luxury Real Estate
When you are marketing luxury real estate, you are actually marketing the luxurious lifestyle that comes with it.
What makes your buyer interested in the properties they want to see? Is it the amenities or the location? They must be looking to get something specific out of the luxury real estate market.
After you answer these questions, include information about the local lifestyle in your marketing strategy. In addition to posting about the real estate market in your area, share posts about new art galleries or trendy restaurants that have opened nearby.
You should consider the answers to these questions before posting marketing copy about your property.
Think about who your target audience is going to be and what would appeal to them when writing about a luxury property. If you’re hoping to attract foreign buyers, capitalize on the benefits of owning property in your local area. If you’re writing for a magazine like Architectural Digest, focus on the architectural amenities that support a luxury lifestyle.
10. Protect Your Image at All Cost
To be a successful luxury real estate agent, it is important to market and brand yourself, not just for your clients, but also for yourself.
To brand yourself as a luxury home specialist, consider everything from the car you drive to the outfits you wear. By taking the time to build yourself as a luxury brand, you will attract the kind of clients you want to work with.
11. Solve a Problem Specific to the Wealthy
You are not just a real estate agent, but a luxury real estate agent offering more in-depth knowledge and greater expertise. Here is a list of common concerns for high-net-worth individuals that often go hand-in-hand with your real estate services.
- Real estate investing
- Legal tax avoidance and tax consequences
- Asset appraisal, privacy, protection, and preservation
- Zoning and land use
- Banking and lending
- Common property and prenuptials
What is one problem that a luxury client may have that you can solve? Reflect on your career and experiences and ask yourself the following questions:
- What experiences, skills, and knowledge are valuable to a luxury client?
- Which luxury clients would benefit from my skills and experience?
Then, write a positioning statement to use on all your marketing. For example:
I help wealthy individuals build a collection of different properties and manage them.
12. Teach a Relevant Course
You should get out there and start educating your prospective clients if you want to be successful. High-net-worth individuals may want to learn more about real estate investing, and you can be the one to teach them.
Create a presentation or workshop that lasts for 30 to 45 minutes in order to position yourself as the real estate educator and local authority. Instead of telling your audience how to solve a problem, share all of the ways that the problem can be solved. Then, end your presentation with a call-to-action that encourages your audience to schedule a meeting with you if they would like to learn more.
Put your focus on educating others without expecting anything in return. Even though you might not schedule any meetings at first, you’ll eventually become a credible authority on your chosen subject, which could result in opportunities later on.
Be sure to bring snacks! Having cookies, coffee, or even wine and cheese can help make people more comfortable.
13. Level Up With Designations
If you choose to become a respected luxury real estate agent, you need proof that you have the knowledge, skills, and experience to handle such an expensive asset. There are several designations and certifications explicitly designed for agents in the luxury real estate market, including:
- Luxury Homes Certification (LHC)
- Certified Luxury Home Marketing Specialist (CLHMS)
- Accredited Luxury Home Specialist (ALHS)
14. Hitch Your Wagon to a Star
You can improve your skills and meet new people by helping other luxury real estate agents with their marketing, events, and open houses. Showing your wealthy peers that you are ambitious will make them more likely to give you opportunities.
Don’t be too proud to share the listing with another agent. If someone is too busy to take on a luxury listing, offer to help out and do the less desirable work. Half of a commission on a luxury listing is still a good payout. Becoming a luxury real estate agent is all about putting in the extra effort.
15. Consider Co-Listing
One way to break into a new market is to co-list a property with an experienced broker who already has a good reputation in the area.
If you can sell a home with another agent, you will become more well-known in the luxury home market in that area.
In order to find co-listings, it is important to have a strong network of real estate professionals. Helping fellow agents find success is a good way to build relationships and establish trust. When you have a large listing that you need help with, other agents in your network may be willing to assist you.
The Luxury Real Estate Market Is Tough, but Worth It
The luxury real estate market can be difficult to get into, but I promise you it is worth it. You can build your wealth quickly when you help affluent clients buy and sell the properties they want. This is something worth putting effort into because the rewards are great.
How to Become a Luxury Real Estate Agent FAQs
Where is the luxury real estate market?
Most communities have homes that can be classified as luxury real estate. These homes are typically valued at $1 million or more, but there are also some homes with price tags in themulti-million-dollar range.
What is a good luxury real estate marketing strategy?
There is no one-size-fits-all luxury real estate marketing strategy. The key to marketing luxury properties is being creative and tailoring your approach to the needs and wants of your buyers. Networking is also a critical part of luxury real estate marketing, so make sure you have a strong network of wealthy individuals before you get started.
How can I become a luxury real estate agent?
Luxury agents must be familiar with the luxury market and have extra training.
To enter this market, learn your local markets, get your real estate license, and start networking with wealthy individuals.