How To Move Up A Rung In Real Estate

You’ve heard the adage “Less Is More.” And yes, that’s often very true. Look how Google’s less (a simple white page with an empty search) squashed Yahoo’s more (a super busy page packed to the margins with tons of info and links galore).
But, sometimes more is, well, more. That’s especially true in real estate commissions: six percent of a $200,000 listing is $12,000. Pretty simple math. So move up a rung, let’s say $2,000,000 (go big or go home, right?). The commission? $120,000. More is more.
Let me ask you a simple question: are you making the amount of money you want to make in real estate? If not, maybe it’s time to move up a rung (or two) on the real estate ladder. Adopt the “more is more” philosophy and go after higher-priced homes to list.
And now may be the perfect time to make the switch to bigger homes. According to Spectrem’s Millionaire Corner Affluent Market Insights report for 2014, the number of millionaire households in the United States has reached a record nine million. There are 132,000 U.S. households with a net worth over $25 million.
Plus, there’s a new influx of buyers. A survey from the California Association of Realtors found that 85 percent of international buyers say they prefer homes in the U.S. because of its desirable location and climate (20 percent), to be closer to family and friends (20 percent), investment opportunities (9 percent), changes in work and employment (9 percent), educational opportunities (6 percent), and affordable prices (4 percent). And get this: sixty-nine percent of international buyers paid all cash for their properties last year, compared to 27 percent of traditional buyers.
Here are a few tips that may help you rise on the luxury ladder of success:
1. Do your homework. First, look at the opportunities for listing higher-priced homes in your market. How many homes fit in this category? How many other agents are serving that market?
2. Learn from current luxury agents. How do the luxury agents in your market operate? What are they doing differently from agents who serve middle-income clients? What makes clients want to work with them versus other agents?
3. Take time to learn the culture of the well-to-do. Don’t be fooled: not everyone is the same. Become well versed in the finer details of the wealthy. Understand the cultural differences. And research and join groups and charities that will put you in front of the right crowd.
4. Develop a brand that makes you stand out from the other luxury agents. This is where you use what you learned from watching other agents in your market. Brainstorm how you can improve on what your competition is doing. What can you offer that they’re not offering? What services can you provide that make you more desirable?
5. Remember the saying, “You have to spend a buck to make a buck.” Realtors are notoriously cheap. But those who work in the luxury market have learned to part with their frugal ways. Be sure to have your marketing budget in order, so you can spend the kind of money you need to make your brand on par with all the other agents in your market. You simply can’t skimp on anything related to your image – business cards, websites, your car, clothing, etc. If you want to break in to this market, you have to look and play the part. And once you get a luxury listing, spare no expense: use professional, high-definition video and photography, etc.
Let me hear from you. What’s your luxury market like? Have you dabbled in it? If so, what was your experience? Did you find hurdles that were tougher to clear than you thought? What’s preventing you from entering the luxury market? What can you start doing today to make inroads in the luxury market?

Verl Workman is president of Corcoran Consulting and Coaching Inc. (800-957-8353), an international consulting and coaching company that specializes in performance coaching and the implementation of sound business systems for residential REALTOR, mortgage brokers and real estate companies.

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