In an earlier post, I discussed why working with upper-bracket buyers and sellers may not be for everybody. And it's certainly not as easy as it may appear to be.
Yes, the financial rewards may be greater, but there are risks involved as well:
High net worth clients tend to have deep pockets. If they become aggrieved during the process, they may be more inclined to spend the money and take the time to pursue those grievances. Check your E & O (errors and omissions) policy to see if it offers appropriate coverage for high-end sales.
When you fly higher, you may fall farther. You'll spend more money, sometimes without result, in the high-end market.
There may be greater potential for transaction fraud in the luxury market. At a Luxury Homes Marketing (CLHMS) seminar in Fort Lauderdale last year, I met and listened to Rennie Rodriguez, a Florida agent who also worked for the United States Treasury Depertment. Rennie told the class that there have been more frequent scams in recent years targeting sellers of luxury properties. The purchas scams sometimes involve counterfeit bank wire transfers, counterfeit cashier's checks and so forth.
There's ever-increasing competition in the high-end market. A growing segment among agents and companies are trying to divide an increasingly smaller pie. In the past decade, many national real estate franchises and companies have established a "luxury properties division". Everybody seems to want to get in on the action these days!
Your perceptions of luxury may differ from those of your clients. Building a rapport with clients and understanding their needs and wants is essential to success in real estate.
There's less room for error. If you're not a detail person when it comes to real estate transactions, this may not be your market.
Contact Broker Eric Kodner with Wayzata Lakes Realty about Minneapolis & Saint Paul area properties, including Lake Minnetonka, Edina and the Minneapolis City Lakes area (Lake Calhoun, Lake of the Isles, Lake Harriet). We also sell on the Saint Croix River and on Lake Superior, including Bayfield, Wisconsin and Madeline Island homes. With fourteen years experience marketing and selling waterfront properties in Minnesota and Wisconsin, we know Lake Minnetonka and Madeline Island real estate.
Wayzata Lakes Realty LLC (Minnesota) and Madeline Island Realty LLC (Wisconsin)
Real Estate Brokerage licensed in Minnesota & Wisconsin
Phone or Text Message 612.670.2539