If you have wondered how on Earth a real estate agent can get into and become rich selling luxury real estate, you're not alone.
Many people who want or have become professionals in the real estate industry strive to enter the luxury real estate market. Imagine a luxury real estate agent making a 3% commission on a home worth over $1,000,000! It seems too good to be true, and in some ways, it is. The luxury real estate market can be hard to get into and is highly competitive.
If you want the opportunity to become a luxury real estate agent, there are things you can do to fast-track your career and arrive at the luxury real estate destination.
Before anyone can sell a luxury home, they need first to get a real estate license.
What does it take to become a real estate agent? First, any person who wants to have a real estate license must follow the protocol assigned by the state they reside in. For example, Minnesota’s real estate license guide can be found here.
How long does it take to become a real estate agent? The requirements vary by state, but on average, it takes less than six months.
If you already have your real estate license, it’s time to move on to the next step.
Only 10% of real estate agents make over $110,000 a year.
Let’s talk about what it takes to be a part of the elite 10%.
Is being a real estate agent hard? You may think that you are done with the hard work after obtaining your real estate license. However, the hard work had just begun. The real estate industry is incredibly competitive. The luxury real estate industry is on another level of competition.
As a real estate expert, I’m not trying to scare you. I’m only trying to prepare you. It IS possible to get a golden seat in the luxury real estate market. But you will need
to hustle for that seat, as it won’t come easy.
Before entering luxury real estate, you must establish yourself as a professional and trusted real estate agent in your target area. Once you can establish yourself as a top real estate agent in your area, you can begin to make major moves into the luxury market.
Make sure you do these things first:
Create a marketing budget and stick to it. Marketing is a great way for real estate agents to spread the word about their business. To become a top-notch agent, you might need to draw attention to your business through marketing and advertising. However, marketing costs can be expensive. Therefore, it is important to remember that the more money you can keep on each transaction, the more money you’ll earn in general.
When you spend money on marketing, you’ll need to be very careful in spending it. Often, real estate agents have a budget for advertising on Google, Facebook, and other advertising platforms. In contrast, other agents spend money on mailers, organic reach by contracting a contact creator, etc. Or a mix of several types of marketing.
While it is important to market your real estate business, a budget is incredibly important. Suppose you find yourself stepping out of your marketing budget. In that case, you may want to consider adding some free marketing strategies and subtracting some of the paid marketing strategies you are currently using.
Additionally, once you have repeat clients and clients satisfied with their experience with you, they will likely refer their buddies to you. Then you can spend less on marketing and advertising. Word of mouth remains the most effective manner to generate clients in the real estate industry, as 68% of people choose their real estate agent through referrals by friends or family.
Real estate marketing ideas-
Create a website and blog. Depending on your online skills, creating a blog and website can range from an expensive marketing strategy to a very low-cost one. Depending on your skills and budget, a website and blog can be a great way for people to learn about your business and see how talented and knowledgeable you are in the real estate industry.
Consider drone photography- Properties with drone images are 68% more likely to sell than properties without them.
Create email marketing campaigns. Email marketing has proven to be one of the most effective strategies for growing a real estate business. Email marketing campaigns help real estate agents encourage prospects, convert leads, and continue business with former clients.
Try different social media marketing avenues. You can use A/B testing to compare the success rates of each social media marketing platform.
Partner with local businesses. It’s easy to partner with other businesses for a mutually beneficial connection. By partnering with businesses as referral partners, your reach in the community will skyrocket. Additionally, people will trust you more when you partner with local businesses.
Sponsor local events. A good way to create a positive brand is to take advantage of realtor sponsorship opportunities. Doing so shows your dedication to local causes. Additionally, people will trust you more when they see you sponsoring events and helping the community.
Connect with other agents. It’s not helpful to be enemies with your competition. That will get you nowhere, especially if you refuse to communicate with agents around you who have been in the real estate industry longer and could help you. Of course, most interactions between real estate agents have to be mutually beneficial. Hosting an open house for a more seasoned agent who could use the help is mutually beneficial. As a new agent, you can practice hooking an interested buyer and making connections you wouldn’t otherwise.
Now that you know how to create a positive brand and make connections, it’s time to focus on the extra things you can do to break into the luxury real estate business.
That is the million-dollar question.
Here are some of the best things you can do to wiggle your way into a six-figure income.
Be flexible with your time. Luxury clients typically have tight schedules, which require their agents to be flexible. For example, a luxury client may cancel a showing you had scheduled for the next day due to last-minute scheduling conflicts. This is the reality of luxury, but those who can handle the unexpected will often reap the most rewards.
Putting your clients high on your priority list will help word-of-mouth spread about your professionalism. A great way to gain clients is to be kind and prioritize those you already have.
When you are on the clock, always look your best. First impressions form a lasting impression. Dressing professionally does not require expensive clothing, just well-designed, well-maintained clothing. It would be a terrible idea to show up in a suit that is too big for you and scuffed shoes. Always look your best with what you can budget when you are on the clock.
Get personal. Don’t be afraid to personalize each client’s experience. Luxury clients are used to getting what they want, and they are less impressed by run-of-the-mill agents.
Luxury clients expect to be treated as special, and they often expect the same from their real estate agents. For example, simple actions like sending personalized thank-you cards make for effective follow-up.
Meet new clients by doing what you love. You are more likely to meet high-net-worth clients by doing something you love. You can do this by joining a group that interests you, attending charity events or fine art shows, or even becoming a sports club member.
Even if you cannot afford a pricey membership or a fancy car, you can still be an enthusiast. For example, even if you can't afford a Mercedes, you can still attend meet-ups and car shows to show your knowledge. Joining groups or attending events that the wealthy also attend can help open the door for high-end clients.
To illustrate: Imagine you attend a horse racing charity event and meet a man who wants to purchase a property where he can train and breed horses. After striking a conversation with this man, you can share all the available properties in your area that feature just what he is looking for.
Just make sure with this strategy, you are attending events and going to places where your dream clientele would also be.
Look for expired luxury listings. Plenty of luxury listings do not sell, which means you can potentially reach out to the seller and network with them. The only problem will be convincing them you'll do a better job than their previous agent.
You can start by looking up the address owner’s information. Then, you can call them and follow up by mailing them an expired listing package. Some sources suggest physically dropping off a package, but I’ve found that aggressive lead tactics don’t often work with the luxury real estate clientele.
Try advertising in luxury zip codes. Getting your services in front of the right clients can be achieved by advertising in specific ZIP codes. Consider using the internet to look up expensive neighborhoods and tools such as Address Scoop to look up specific addresses and even whole neighborhoods.
You can also do market data research and create graphs to show your audience’s demographics and lifestyle behaviors. This can include data you find about their purchase behaviors. Your marketing efforts will help you target the luxury market and attract those clients.
Research current luxury homes on the market. Luxury homes are often unique and come with various features, amenities, and selling points that may require specialized knowledge to market effectively. By researching luxury homes, agents can gain a deeper understanding of the local market, which can help them better advise their clients on pricing, marketing, and negotiation strategies. Address Scoop has a monthly updated list of the most expensive luxury homes on the market in the United States. You can access that list here.
Work with a graphic designer. Unless you have graphic designing skills, you likely won't be able to attract high-end clients by designing your logo and website yourself. Your visual branding should be perfected by a graphic designer specializing in luxury real estate. If you do not have an adequate budget, look to other luxury agents in your area to get website design ideas. Also, make sure your site is user-friendly and clean.
If you want the opportunity to become a luxury real estate agent, you must go above and beyond the bare minimum and earn your way to the top.
However, there are things you can do to fast-track your career and arrive at the luxury real estate destination quicker than you might expect. Hopefully, this article will help you achieve your real estate goals.