So, you want to work with beautiful luxury homes and high net worth individuals, but you don’t know where to begin. Maybe you have tried to farm to luxury homes but you didn’t get any responses. You probably feel like you are invisible to them. That’s because you are invisible to them.
Or is it worse than that? Even your high net worth friends aren’t using you to sell their plush pads. Instead of listing with you, they are selling with another agent that seems to have every luxury listing. What if I told you there were easy ways for you to break into that market?
For the past 10 plus years, I have coached agents on how to differentiate themselves so they can attract high-end clients. In this article I will uncover 10 ways for you to position yourself to break into the luxury market
Go Where the Local Influencers Are
Reality TV star from Million Dollar Agent LA Josh Altman shared with me his story about how he went from a struggling agent to a top luxury agent. Josh explained to me that most of the Hollywood celebrities all live in one specific area of town and that many of them went to the same Starbucks every morning. Since he didn’t have the same wealthy connections some new luxury agents have, he decided that Starbucks could be his intro to the market.
Each morning Josh would go to the Starbucks and slowly sip his coffee until a celebrity walked in. As soon as they got in line he would toss out his coffee and jump in line behind them. Pulling from the local celebrity buzz and his knowledge of the LA real estate market Josh would spark up a conversation.
He would say things like, “I hear you are working on a new movie with (so and so).” or “Have you heard that (so and so) may be selling their estate? I think It would be perfect for you.” Josh was just hoping that they would converse back and that he could find a way to provide value to them, so they would think of him if they had real estate needs.
How to Get Started Today
Find a place in your area where you will strategically “bump into” the rich and famous. Every city has businesses, areas, and hangouts that the affluent frequent. In your area this may be a country club, bar, gym, or even a Starbucks. Choose a post and figure out how to become a figure there.
Once you have identified where you will spend time waiting to bump into wealthy home buyers and sellers, then you must consider how you are going to approach them. Desperation is not an attractive quality so don’t chase wealthy people around asking them if they want to buy or sell a home. You want to attract not chase.
Approach them naturally by asking questions that are appropriate for the venue. Things like, “How did you shoot today?” And “Do you live on the course?” If you are at the country club The key is to be available and be conversational. Allow the real estate conversation to come naturally in the exchange by casually bringing up the work or project they are working on. They will likely reciprocate giving you the opportunity to discuss your passion for luxury real estate.
Prospect Luxury Expireds
Traditionally, luxury homes can take 2-3 times longer to sell than the average home. This is because there are fewer people that can afford the high price tag associated with luxury. Additionally, due to the custom nature and unique features that many luxury homes contain they are much more difficult to price correctly the first time.
Because of this, luxury home listings expire more frequently than moderately priced homes. Some luxury listing can sit on the market for years and change listing agents 2-3 times before they sell. You don’t necessarily need to close your first listing to get started, you just need to get it and more will follow.
Luxury FSBO sellers can also find it difficult to attract “real” homebuyers for their premium priced homes. This means that there is opportunity for some savvy agents to prospect for both luxury expireds and FSBOs.
How to Get Started Today
I have coached several agents on prospecting luxury listings expireds and FBSOs. While the scripts to get the appointment are the same, your positioning and presentation is a little different than a traditional listing.
Because you are approaching them unsolicited, don’t position yourself like you are one of them. Instead, present yourself as an aggressive (yet professional) real estate agent that is the ultimate solution to their problem. The problem that is wasting their valuable time and preventing them from what they are trying to achieve.
Solve a Specific Problem Common to Wealthy People
Have you heard the saying, “When you try to be everything to everyone you;ll only be nothing to anyone.”? This is also true when communicating to wealthy clients. The affluent are busy and they are constantly being marketed to by sophisticated and polished companies. Therefore, your marketing must stand-out, and it must be great. The elite don’t have the time or the energy to pause and think about how you “fit” into their lives.
When you are clear in your marketing and in your messaging about exactly what problem you specifically solve, then they can quickly decide if they need your services or not. Doing this also differentiates you from the other real estate agents that you are competing with. Here is a short list of problems that are common to wealthy people you might think about solving along with your general real estate services.
Types of Problems the Rich Have
- Legacy Planning
- Tax Consequences
- Legal Tax Avoidance
- Asset Privacy
- Asset Preservation
- Asset Protection
- Asset Appraisal
- Insurance
- Zoning and Land Use
- Real Estate Investing
- Development
- Banking and Lending
- Common Property and Prenuptuals
How to Start Using This Strategy Today
Think of one, and only one, problem that a luxury client may have that you have a solution for. It helps if you are experienced, knowledgeable, and passionate about solving it, but you can always educate yourself further to offer more and better solutions in the future.
Think of things like helping them prepare the property for sale or legally avoiding taxes. If these things interest you and you have experience solving it, position yourself as the one person in your market that solves this problem for the affluent.
Write a positioning statement to use on all your marketing. Here is an example of a positioning statement for a luxury agent;
“I help wealthy people create, acquire, and manage a property portfolio.”
Create a Course and Become an Authority (+ Have Great Snacks)
When you think of the wealthy you often think of highly-educated people. Your wealthy clients are likely well educated, so what could they learn from you? Well, they may be well educated, but not likely in real estate.
Real estate is a specialty and there are more speciality niches within the real estate industry. So if you want to start working with luxury leads then you need to educate yourself and find ways to pass that knowledge on to them.
If you are like me, you may be a teacher at heart. Selling through educating has always been my go-to lead generation strategy. When you take the time to educate, they will see you as an authority and this will gain their trust. High net worth individuals may desire a deeper knowledge of real estate investing, 1031 Exchanges, recent zoning changes, or development opportunities, but you need to do more than knowing your local real estate market.
How to Begin
Position yourself as the real estate educator for the rich by selecting a specific problem or challenge wealthy people commonly face and creating a course to educate them how to solve it. Your goal is to become the local authority on the subject.
In your 30-45 minute presentation, you will share with them all the ways that they can solve the problem without providing them exactly how to do it. Let them know that if they would like more information on how exactly to do it or to have it done for them they will need to schedule a call or meeting with you.
Focus on educating without getting anything in return. Even if you don’t set any meetings will eventually become a trusted authority on the subject and this will lead to opportunities in the future.
Pro tip: Don’t forget to bring snacks! Offering cookies, coffee, or even wine and cheese can go a long way toward breaking the ice.
Leverage Your Past Expertise
If you want to break into luxury real estate, do what many other luxury agents have done and leverage your past expertise. Like you, many top luxury agents had careers before they began selling real estate. The only difference is that they leveraged the expertise from their previous careers to attract luxury buyers and sellers.
Previous professional careers like an attorney, CPA, or financial planners are perfect careers to pivot into working with affluent clients. Because, some well-heeled clients expect their agent to have deeper knowledge and understanding when it comes to things like risk management, financials, and tax liabilities.
Experience in other related fields like interior design, architecture, or construction can also help position you as the expert in preparing a luxury property for sale or helping construct their dream property.
How to Start Using This Strategy Today
Reflect on your career and experiences prior to real estate. Ask yourself the following questions.
“What experiences, skills, and knowledge could be seen as valuable to a luxury client?”
“What types of luxury clients would benefit from my previous experience, skills, and knowledge?”
“How can I communicate this in my marketing, conversations, and advertising?”
Get a Hobby that Rich People Participate In
One of the greatest challenges of being wealthy is where to spend all your money and your free-time. The rich have access to more expensive hobbies and hobbies that take more time to master than the rest of the working class. Therefore, where you find expensive or difficult hobbies you will find upper-class clientele.
What hobbies are the opulent likely to attend? Well, according to The Gentleman’s Journal, the ten most common hobbies of the of the richest people in the world are:
Ten Most Common Hobbies of The Richest People in the World
- Skiing
- Flying
- Car Racing
- Polo
- Wine Making
- Sailing
- Exotic Pets
- Golfing
- Art Collecting
- Owning Horses
How to Start Using This Strategy Today
If you wish to rub elbows with the rich and famous, it may be as easy as joining your local polo club or attending a few fine art shows. Remember, that nobody likes a poser so start with a hobby you actually have knowledge or at least some interest in.
While buying a horse or race car might not be feasible for you, you can always find other ways to get into the hobby as an enthusiast. For example you may not be able to afford a Ferrari. but you can certainly educate yourself on the company’s history and attend meetups and car shows to show off your knowledge.
You can turn this from entertainment to an opportunity by being prepared. If you are attending a vintage car race, you can bring a list of luxury properties in your area that feature large garages or out-buildings that would be perfect for vintage collector car storage.
Get Involved in Charities and Causes
The high-society lifestyle includes the responsibility of supporting causes. The affluent do this by attending charity events and auctions, volunteering, and fundraising.
Their personal interests may support local and national charities, local schools and alumni events, and local and national political candidates. Find a cause that you also care deeply about and get involved. No need to do this just for the expectation to meet high net worth individuals. Because, this strategy has the additional benefit of feeling good about helping others.
How to Start Using This Strategy Today
Start with causes you are passionate about. When your compassion for the cause shows through your relationships and opportunities will develop naturally. From there you will build relationships that will lead to opportunities.
Pro Tip: Instead of attending a charity gala as a guest consider hosting a charity event of your own. You don’t need to throw a black tie gala to attract wealthy people. When you get behung a cause passionately others will see you as a leader and this will elevate your status within the community.
Level Up Your Designations
You may wish that you were born into the luxury lifestyle. You may even believe that if you were it would be easier to get luxury listings. Having elite pedigree may get you access to affluent people, it doesn’t automatically earn you the right to handle your peers’ multi-million dollar transactions.
Your social circle will want to know that you have the real estate acumen before they trust you with their most prized possession.
How to Start Using This Strategy Today
If you choose to become a respected luxury real estate agent for the wealthy, you must show proof that you have the knowledge, skills, and experience to handle such an expensive asset.
You can gain knowledge by seeking a degree in real estate or your GRI (Graduate of Real Estate Institute). Boost your luxury home sales techniques by earning a designation from the Institute for Luxury Home Marketing.
You can also gain skills by helping other luxury agents with their marketing, events, and open houses. Once you get a few leads, you can gain experience by getting a few sales under your belt. It will snowball from there.
When you are able to show your well-to-do peers that you are committed to being the best luxury real estate professional you can be, they will be more likely to take a chance on you.
Make Luxury Part of Your Personal Brand
Recently I talked to my friend and Founder of Luxour Lifestyle Magazine Jessica Peterson and she shared with me her secrets to breaking into the luxury real estate market. FAST. Jessica said that to break into luxury fast your marketing needs to show more than anything else “…that you know your stuff and that you are in the community.”
According to Jessica, affluent clients want to know specifics about your marketing plan and marketing efforts. She continues, “Videos are key right now… about the lifestyle. They want to know about the lifestyle.” Suggesting that you can market yourself with video around the lifestyle of living in the community.
How to Start Using This Strategy Today
Dig deeper into Jessica’s unique perspective of how she broke into luxury real estate in my interview of Jessica below. In addition to talking about how to integrate luxury into your personal brand, she also shares what never to do as a luxury agent
Jessica Peterson on Luxury Personal Branding & What Never to Do As a Luxury Agent!
Don’t Market Listings, Market the Lifestyle of a Wealthy Area
Affluent people often own multiple homes located in areas that offer unique lifestyles. Attract the attention of luxury home buyers by showing them what their life would look like if they lived there. Create a plan to consistently market yourself as the luxury lifestyle agent in your area.
Whether you are near the beach, mountains, a lake, or the hip urban hub, you can share the best of the luxury lifestyle from that area. It also won’t cost you a lot of money to cover high end restaurants, gallery openings, or golf tournaments using your social media accounts. Social media is the perfect place to “fake it until you make it”. Marketing the luxury lifestyle is easier than ever before.
How to Start Using This Strategy Today
Once a month hire a photographer to take professional photos or videos of local fine dining, theatres, museums, recreation, luxury stores, and of course luxury homes.
You can also follow restaurant openings, gallery openings, etc on social media and give them some coverage. They will love you for the free press.
Create a schedule to post your professional photos on Instagram. Add a hashtag for the location and the feature you are promoting (#lajolla #beachfront).
Lastly, don’t forget a call to action. “Message me if you want to live on the beach!”
The Bottom Line
It all starts with your interests for luxury homes, serving the wealthy, or the lifestyle. Connect with the passion within you first, then create a plan to find affluent people that share the same excitement you have.
Over to You
Do you have a way to break into luxury that we didn’t mention here? Let us know in the comments.
