Blog Luxury Real Estate Breaking Into the Luxury Real Estate Market

Breaking Into the Luxury Real Estate Market

The allure of luxury real estate is hard to ignore. Reality shows like Selling the OC, Million Dollar Listings, and Buying Beverly Hills make the glamour of the business hard to resist. The tricky part is they also make it look easy.

You won’t be the only one trying to get your foot in the door of the luxury real estate market. It is incredibly competitive and demanding, and you can’t afford to make mistakes. Big budgets, listing prices, and high dollar commissions leave very little room for costly errors.

But it is possible if you’re prepared to play the long game! By applying the right skills, adopting a strong, consistent work ethic, and sticking to a solid marketing and networking strategy, you can build meaningful relationships and a sustainable business over time.

How to Break into Luxury Real Estate

So, how do you get started? You need to fully immerse yourself in the world of luxury. Luxury homes come with high-end stylistic features and details that you should familiarize yourself with, everything from tile styles to appliances to space for helicopter pads.  

Your role as an agent isn’t just about making a quick buck and selling high-end properties; it’s about understanding the lifestyle and expectations of the people who buy them. That’s true in all cases, but particularly with luxury homes.

These clients are looking for more than just a house; they’re looking for an experience, and your role is to paint a full picture of what that will look like for them.

But before you dive into building your client list in the high-end market, there are a few steps you should take so you can approach any potential client with confidence in your real estate knowledge:

1. Educate yourself. No surprise here that this is your first step. Start small with a particular neighborhood, focus on a few houses, and conduct a comparative market analysis. Get familiar with stylistic trends, average prices per square footage, turnover rates, and development/remodel plans. All of this will help you develop a deeper level of how to evaluate the properties competitively and what amenities will be expected of your clientele. You have to become an expert and then expand. 
2. Shadow or partner with luxury agents to gain experience and name recognition in luxury real estate circles. Credibility goes a long way in real estate. Partnering with a reputable agent as you’re getting started will help you establish trust with clients and learn how to negotiate high-dollar deals. Plus, you’ll get a taste of all the behind-the-scenes work (networking, marketing, hosting events, etc.) that goes into successfully brokering a luxury deal.
3. Invest in your image. Have you ever heard the expression, “You have to spend money to make money”? That is especially true here. This doesn’t mean you have to wear designer clothes or drive a Porsche, but you must dress the part professionally. Like it or not, your image is intertwined with your business’s success. How you conduct yourself in and outside of the office will help build trust, confidence, and relatability. 
4. Build your personal brand. In the luxury market, your reputation is everything. Building trust and familiarity is the most important element of breaking into the luxury market. Every aspect of your image has to reflect your personality and brand. You are trying to break into the luxury real estate market; your website should reflect that in the copy and design. Your business cards should be sleek and chic to reflect your website. Develop a strategy to provide top-notch service with every interaction you have with clients. 
   1. Referral clients are much more prominent in the high-end markets, and you want to establish a recognizable and reputable brand to help build word-of-mouth credibility in every interaction.  
5. Join high-end networks and professional organizations. Easier said than done, but you have to go where the money flows, so to speak. Attend events catering to affluent individuals and interact with a genuine interest in getting to know the lives of the people you meet. 
   1. If you go into meetings with only money on the mind that will cost you more than you know. You are building long-term clients and a referral base when you attend these events, and it does take time, but these connections, when founded on genuine relationships, are priceless.

Networking is Non-Negotiable

I’m going to devote an entire section to this: Networking is the only true way to break into the luxury market, but remember not before you have educated yourself and established your brand/image. 

Remember, you are going to be negotiating multi-million dollar deals; this is not small potatoes. Clients need to know they can trust you with their assets, which may have taken decades to build up or have deep connection to with family members. 

You’re not going to cold-call these types of clients and get a response without having done the legwork of building a recognizable and trusted name in the industry. If you don’t know anyone yet, that’s okay. You can grow your networks quickly by being present in the places where your ideal clients are. 

• Attend and participate in charity events, private galas, and even high-end sports events like golf tournaments. Deals and meetings get set up in these environments once trust is established. So start going now; the more you are seen, the more you will build familiarity, which breeds trust.
• Build relationships with interior designers, financial advisors, and luxury car dealerships. Yes, even luxury car dealerships, it’s time to think outside the box.  
  • Again, I want to stress that the luxury market is largely built off of referrals. Suppose you also build friendships with luxury architects, designers, and other related professions catering to high-end real estate clients. In that case, they can also make a good reference for referrals.  
• Follow up! You can’t expect to meet someone once and then be handed the keys to their multi-million dollar home. Follow up, make plans, and stay consistent in your communication to continue to build upon your connection.
  • Keep a log of the people you meet and make notes to help you remember when to reconnect, and keep the conversation going to nurture your relationships and build your networks. 

Marketing Strategies for Luxury Real Estate

It’s important to note that you are selling exclusivity. In your marketing, you are catering to the needs of a specific wealthy clientele, and it’s essential to market each house to the individuals who would be best suited for each home. 

Consider whether your client is focused on privacy, more athletic, has an active family, or will use this property as a part-time vacation home. Each marketing strategy needs to tell the story of what that house has to offer to help make it appealing to your client’s lifestyle.   

This all ties into how well you present yourself, your company, and each property. Here’s how to do it effectively:

• High-quality visuals: The sky is the limit when it comes to advertising your properties, and the investment will be worth it. Professional photography, drone shots, and video walkthroughs with high-end editing to showcase a lifestyle of luxury. Get creative! 
  • You can create “a day in the life” experience in a video experience capturing a garage full of luxury cars, the sun setting over the ocean, martinis by the pool, and a movie playing in the home theater. Opulence is key! 
• Personalized service: Luxury clients expect a white-glove experience to help them envision their lives if they decide to make this property their home. If you know their favorite wine… have it ready in the kitchen. Any little extra touch you can add matters. 
  • Also, remember exclusivity and discretion are expected in this market, make sure to offer exclusive previews or private showings before the listing goes public, which will also increase the odds of your client feeling like they are important.
• Luxury branding: Your brand should reflect luxury. First impressions matter, and I know we’ve covered it a touch already, but you must also represent what you’re selling in every aspect. Your website needs to be clean and chic, your photography top-of-the-line, and your overall professional aesthetic. 

How to Build a Productive Schedule

Competition is at its peak in luxury markets, and you must make every minute of your day count. 

There’s no denying you will be working around the clock (just about) as you’re breaking in, juggling multiple clients, properties, and leads, all while maintaining top-tier service. 

Without a solid routine, it’s easy to get overwhelmed. 

So, let’s get an outline of what a typical day could look like for you: 

1. Lead Generation. Barring any timely deals that take priority, start your day nurturing leads. Take the time to set up email marketing strategies, send out personal messages to anyone you have recently met through networking, and follow up with clients you’ve recently met. 
2. Social Media is one of the most powerful tools in lead generation and showcasing your luxury brand. Spend an hour posting your videos, market updates, and expert advice, and implement your strategies to expand your audience and grow your brand awareness. 
3. Stay on top of market trends. Set aside time to ensure you’re up to date on what’s selling. What’s new in the world of high-end design or architecture? Give your professional colleagues a call to see if they have insights. Knowing details like these helps keep you sharp and gives you an edge over other professions that can help your referral business.
4. Schedule and prioritize client meetings. Don’t overload your days with back-to-back meetings. Instead, do your best to designate specific hours in the afternoon for client meetings, showings, and property tours. 
   1. However, please know this will be difficult if you are working with wealthy clients with limited time on their hands. It’s a constant battle to balance protecting your time for productivity and ensuring your clients’ needs are met. 
5. Networking. Schedule dinners at popular restaurants and attend parties, charity events, and music venues. Build your relationships in ways that also provide an enjoyable social life! 
6. Protect your personal time. Carve out time for yourself and your loved ones. It’s okay to take a break. I repeat it’s okay to take a break. Set a cut-off time. Set a start time. This balance will help keep you energized and focused when you are working and help you maintain a positive attitude through all the pitfalls.

3 Tips to Stay in the Long Game

And a long game it is with a big payoff if you hang in there. Growing your business quickly in the luxury markets is possible, but it takes an abnormal amount of hustle as you’re getting started. Just a few notes to help you mentally prepare:

1. Be Patient. I know it’s hard when there is a potentially massive commission carrot dangling right in front of you, but the time you spend focusing on building relationships and trust will pave the way for long-term success. Plus, the more experience you gain, the more likely your deals will go smoothly, which is worth more in the long run.
2. Be Proactive. We’ve touched on this, but clients won’t come to you. Remember, you will be in a sea of agents looking to enter the luxury market, too. You must follow up with clients and set up meetings or host events yourself to get conversations happening. If you hear of a new house coming onto the market or an inkling of someone wanting to sell… jump. Be smart about your approach, but definitely jump on it! 
3. Confidence Matters. Even if you’re new to high-dollar negotiations, your ability to convey confidence in your knowledge is imperative. Spend as much time as you need to learn your target markets inside and out. You want to establish yourself as an expert in every conversation right out of the gate.

Mistakes to Avoid in Luxury Real Estate

Now, let’s talk about what not to do. The luxury market is exponentially more competitive, and some deals may include bidding wars, cash offers, and international negotiations. Making mistakes under these circumstances can be costly for your bank account and your reputation.

Here are some pitfalls to avoid:

1. Failing to respect privacy. When working with high-net-worth clients, discretion is mandatory. Sharing any details about their finances, budget, or reasons for moving without permission, even unintentionally, can instantly ruin your reputation. And usually, these circles are small, word gets around quickly.
2. Not delivering personalized service. Clients in this realm want to be treated as if they are your only client, and to be fair, that’s how you should approach all of your clients regardless of net worth. It’s good business practice overall to understand the unique needs of your clients. Let’s say privacy and security may be a top priority for your client:
   1. For example, if the home you are about to show them doesn’t have a built-in security system, it’s your job to go above and beyond with answers on what companies are available to install it and at what cost with options.
3. Overpromising and under-delivering. Do not get intimidated and promise the moon if you know it’s out of reach in your specific target market. Always be honest and set realistic expectations for your clients. Then, when that magical property comes on the market that has everything they ever wanted, they know they can trust you when you say, “This is the one.”

Emotional Endurance and Mental Toughness

Let’s be honest: this business is tough, even for the pros. It takes a long time to let the deals that fall through, the houses that sell off-market, the inspections that take forever, etc., roll right off your shoulders and trust that there will be another deal soon enough. 

That’s why cultivating emotional endurance is one of the most underrated skills in luxury real estate. It’s extremely hard not to get attached to the end result of closing each potential deal or not being the agent to acquire the coveted seller listings. 

Here are a few pointers to help you hang in there:

• Be prepared for rejection. You’ll inevitably hear “no” a lot in this market, and that’s okay. Please do your best to shake it off and stay focused on building your relationship with that client. While you may have done everything “right” and devoted your time and energy to making your client happy, decisions like these are not personal. 
  • Your reputation is what matters more because a “no” today could turn into a “yes” down the line. 
• Stay calm under pressure. This market is extremely fast-paced, and emotions can run high when a lot of money is on the line, but your job is to stay cool and confident. Clients are expecting you to handle any situations that come up with ease for them. If you can communicate honestly and directly, you will build trust that you are a problem solver and can confidently handle their investments.
• Invest in self-care. It’s not selfish, burnout is real. Real Estate is an industry that never sleeps, and every call you get could have a hefty dollar amount on the other end. While yes, you will be working irregular hours, likely seven days a week, you must build time for yourself into your schedule to recharge. Whether it’s regular exercise, meditation, or spending time with loved ones, make sure you have healthy outlets to manage your stress.

Summary

Okay, I hope I didn’t scare you off of breaking into the luxury real estate market. It’s tough, no doubt. But truly, it comes down to knowing what you’re talking about and building your networks. I hope you have some ideas for getting started now and are excited! 

At the end of the day… you’re going to be going to parties, chatting with people, and sure, there is a business happening simultaneously, but it can be really fun. Don’t lose sight of that! Hard work always pays off in the end.