Eric, You are absolutely correct.  The higher end homes are a whole different ball game.  You had better be on top of your game if that is the direction taken.

Vickie -- There's a great deal more to marketing luxury homes and properties than many agents realize.

Erick, top post... I am a young and a new agent in the market but i hold my ground, with the big dogs in our area... It is true about spending a great amount of money to get a luxury home sold... mls and ad in the paper won't do it in most cases... I had a listing once where I spent over 11k on marketing for 8 months in and than a different agent came with the buyer... I make 20k in commission .. so is that a good deal.. I don't know but you know what ... it went in the records that I SOLD it ... and I never give up...

And yes it is true.. not that easy to sell high market... takes some big time training, in my opinion, in the way you present the home and the way you present yourself to buyers and seller...

Leo, some agents seem to be dazzled by the lure of big commissions.  But as you put it so well, the expenses are greater and the net yield may turn out to be less than expected. 

I had an agent in my office come up to me the other day and ask for advice on getting luxury listings. This particular agent deals with one certain area in the county that houses many locals and the blue collar working class of the resorts. Now she has made a good niche for herself there and spends very little money on the listings. Due to the price they tend to turn over fast and keep cash flow coming in.

When I told her luxury listings can be hard work and tend to stay on the market 2 to 6 times longer than her current listings. She was in shock! I also let her know that one of my listings right now had over $5,000 of marketing costs into it, not to mention the time involved. Even more shock. She made the statement she could never afford to do that. Then she gave me the look like I was not telling her the truth. Like I was trying to keep her out of the good ol boys club or something.

Eric I tell you some agents don't have a clue what it takes to market and sell some of these homes.

Great info and I couldn't agree more.

 If you live in the upper end homes neighborhood they trust you more than just new agent advertising on their block.  You have to have patience to win them over.

Jason and Deanna -- I agree that some agents seem to feel it's a simple matter to list upper-bracket homes and grab a huge commission.  If it's not in someone's experience to deal with the challenges of selling to the upper bracket, they form a pretty glib impression of how the process really works.  Thanks for commenting!

Windy -- It's a huge advantage to be part of the neighborhood and to be able to relate to the high-end client.  Establishing a rapport with the luxury buyer or seller is crucial.

So, you have effectively let people know it is difficult to market luxury homes.  Now, to be helpful, let people know how they can break into the market. 

Stefan -- From reading your profile on ActiveRain, I see you have completed the Luxury Homes Marketing Specialist course, based upon the fine research by Laurie Moore-Moore of the Institute for Luxury Home Marketing.  That course is an excellent foundation for anyone who wishes to work in the luxury market.

As soon as you can, I'd suggest completing the sales production requirement that will qualify you to obtain the CLHMS (Certified Luxury Home Marketing Specialist) designation and seal. 

This seal identifies you as an agent who has not only taken the classswork but has also had the actual sales production experience that establishes you as a leader among those in your state who market luxury properties. 

While the ILHMS course is valuable, it will be a tremendous advantage to have prospective clients know that you have the experience behind that education which will enable you to provide excellent service.

Eric - thanks for your response.  I agree, I need to complete the sales production requirements.  Unfortunately, I have not been able to break the price point required.  How did you get your first high dollar (qualifying) sales? 

Stefan -- This is a tough market for reaching production requirements for any designation, such as the CRS or CLHMS. 

It took me awhile to build a luxury market clientele.  Joining the LuxuryRealEstate.com broker network was a huge help in the process.  Fortunately, I sell primarily in two areas that are both largely upper-bracket markets.  Networking with other luxury agents is part of a strategy that should get you there.  I wish you luck and would be glad to stay in touch with you as you pursue the process! 

 ERIC: I also have my CLHMS certificate. I started off well with my 1st $1.2 listing that sold in Dec 2006. Then the market dropped and I never got my 2nd million dollar home to be listed or sold. Now, its too late to qualify for the 1 mill dollar designation. I don't know if I will ever be in the upper bracket again. 

Windy -- From looking at your listing on the CLHMS website, you have completed the education from the Institute for Luxury Home Marketing.  But I don't see the gold seal next to your name, which would certify that you had earned the actual CLHMS certification, am I correct?

According to the Institute for Luxury Home Marketing website, you have up to three years to complete the performance requirements (including proof of closed sales) to earn the CLHMS Designation.  I would check with the Institute to make certain you know how long you have to accomplish this.

Even if you are not able to complete the production requirements at this time, please don't be discouraged!  You have earned the eduation, which entitles you to use the Institute For Luxury Home Marketing logo in your marketing.

When the market rebounds, you'll be able to make the qualifying sales needed to earn the actual CLHMS certification!

Eric - Thanks for the encouragement and advice.  I did not realize I could use the logo mentioned in your response to Windy.  Good stuff!

Stefan -- I see your listing in Centennial, Colorado with the Member logo next to it.  Once you complete the class, my understanding is that you become a member of the Institute upon completing the course.  You should contact the Institute if you have questions about the benefits available to members, but I believe they offer downloadable logos you may use on your website and in print materials.

Eric, Stefan and Windy - as a trainer for the Institute for Luxury Home Marketing, perhaps I can clarify a bit - yes, once you complete the class you can use the member logo that Eric posted above on 4/22. Once you have certified the production requirements you can use the seal logo that Eric posted in 4/19. There is also a Million Dollar Guild logo

 that you can use if you also qualify for the Million Dollar Guild (you must already have the CLHMS designation to qualify for this).

As to the questions on how to break into the luxury market, the course material in the CLHMS class will give you several ideas for how to do this, as well as the knowledge you should have when you do break in.

Laurie Moore-Moore teaches most of the classes; my daughter, Tami, and I teach some of them - we're teaching one in Washington DC before the mid-year NAR meetings on May 10-22 sand one in Miami before their International Congress on June 9-10.

Many companies have their own luxury designations, but the requirements vary so much (and if you leave the company you "lose" the designation) that it's great to have a national cross-company designation.

By the way, if you search for luxury real estate agents on the Wall St Journal site, you will find the members of the Institute for Luxury Home Marketing, the CLHMS agents.

Sharon, thank you.

I neglected to add that the Million Dollar Guild is also available to those who meet the requirements above and beyond the CLHMS designation.

 ERIC: Thank you for your encouragement I will keep trying and thinking positive to be able to earn my Million Dollar Guild Award(even in this market)

 SHARON:I will go back to the site and check the seal requirements. I thought it was the same as the Million Dollar Seal.  Thank you for taking the time for the explaination. I would love to go to Texas again to take a refresher course. I was new in Real Estate when Ioriginally attended.

Windy, the top brackets are a challenge, especially in this market, but ironically there are still buyers out there who are purchasing million-dollar homes.  Best of luck!

Windy - if you've taken the course once you can take it again for a very reduced fee. The content keeps adding new information, as well as new features such as the statistical charts available to members.

  ERIC: Thank You

  SHARON S: I am glad to know about the reduced fee. I will add it to my budget for next year.

Windy -- While the Luxury Homes Institute courses are a huge help, there is a long "learning curve" in the upper-bracket market that requires additional study and skills.  I'd go out on a limb to predict that there will be more education available in the future for agents who wish to acquire those skills.

Amen! I cringe when I see a seller of a luxury home hire a new or inexperienced agent, because 9 times out of 10, the days on market go way up and they end up relisting.         

Kevin, there is specialized training available for inexperienced agents who want to break into the luxury market.  But the agent (or the agent's broker) needs to make the effort to make it happen.

Eric - it's always a good idea for a new agent to share their opportunities with a mentor and learn from them how to handle it. You can only get experience by experience, and it's not fair for a client to be the beta tester.

Sharon -- I agree that novice agents new to the luxury market should partner with an experienced agent on luxury listings until they master the necessary skills.  The problem is, some firms simply don't have anyone on staff who is truly well-versed in luxury marketing. 

I would recommend the book:

 "The Art of Selling to the Affluent: How to Attract, Service, and Retain Wealthy Customers & Clients for Life" by Matt Oechsli. I think it really adds more to the discussion than the ILHM classes.

Yes, I flaunt the fact that I am the only local CHLMS, but I really thought the class was weak. I think you will get more out of any of the core CRS classes.

Geordie -- I've heard of the book you mentioned, but have not read it.

The ILHM curriculum and CLHMS designation was pioneering in many ways and Laurie Moore-Moore is to be commended for opening a door to the art and practice of marketing luxury homes.  As time goes along, I believe there will be other classes and training opportunities for agents who wish to learn more.

Thanks for the reminder about the book.  I agree the CRS classes can help to provide a strong foundation in the luxury home market.

Attending the Leaders in Luxury annual conference offered by the Institute for Luxury Home Marketing has been very relevant. I like the fact that many of the speakers are from outside the real estate industry, since we're being compared not to other real estate agents but to other purveyors of luxury goods.

Sharon, I noticed the same thing at the LuxuryRealEstate.com conference.  John Brian Losh has done a super job of bringing in speakers who represent other segments of the luxury marketing industry.  People in real estate could certainly learn from the way other luxury goods are marketed to the consumer.

Excellent Post!Not everyone can sell luxury property and you have to put much more effort into marketing a million dollar home.

BLRGUY

BLR Guy,

Thanks for the kind words!  Yes, marketing an upper-bracket property involves more risk and up-front marketing dollars for the agent and their company.

Great post...

Yes, I've sold high-end before and it does take more work and effort. Hiring a photographer, floor plans, brochures, broker open house lunches and etc. I must admit though, I get so fired up selling high-end homes and I love the challenge.

Wayne, I believe the challenge is the motivation for most of us in the high-end niche.  There's something very rewarding and satisfying about making an upper-bracket sale.

Thanks so much for this post.  Very interesting reading.  Now I have to find where I can take the Luxury class to get the certification. 

Christine, here's the link:

The Institute for Luxury Home Marketing

Best of luck in your pursuit of the CLHMS designation!