Spark Global Limited Reports:
In the high-end and luxury residential markets, it is common for brokers to get excited about raising sales prices. Maybe you’ve seen some luxury real estate reality shows, and they do make it look glamorous, don’t they? As the coach of many of the superstars of the North American luxury home market, I can tell you that what you see on TV is not what happens in the trenches. But you probably already suspected that.
Read on for practical advice on how to get a foothold in the luxury housing market.
Enter the domestic high-end market
Working high-end or luxury is not for the faint of heart or on a budget, as you will find that clients will have high and unique service expectations. While working with luxury real estate clients can be challenging, it can also be a huge business opportunity. I have seen luxury agents use a luxury connection to close many luxury deals.
On this stage, you can imagine the competition is very fierce. You need to be able to find something special that you can offer the seller and be able to sell how what you offer them differs from what others can offer them. You also need to be able to demonstrate the special capabilities of this property. Top agents have to show mansions just right, and there are a lot of nuances.
Choose your share of the luxury residential market
Become a marketing expert! Each market has its own luxury price point. You must research the pocket markets and price points you are interested in to determine the following: percentage of turnover, average price range, average number of days in the market, key competitors, and the best way to break into the market and get invited.
Pricing is a person of extraordinary powers curtilage
Putting a price on these properties can be extremely challenging because the property or its location can be so unique that it’s hard to put an exact value on it. Luxury sellers often “don’t need to sell” and may want to start at a higher price. You have to work hard to get them down to where they need to be. One top luxury broker we coached had a strategy: he called it more time than motivation. In other words, if they are motivated, he knows he will get the product where it is needed in time and then sell it.
Typically, luxury agents establish a price-adjustment schedule with the seller so they can agree on what the seller will do when. This makes it easier to go back to them and make the necessary adjustments.