FAQ: How Can I Break Into The Luxury Real Estate Market?

By
Services for Real Estate Pros with Napa Consultants

"How do I break into the luxury real estate market?" is one of those questions we are frequently asked.  We usually recommend if they are new to the real estate market that they take a course on luxury real estate, such as the  Certified Luxury Home Marketing Specialist (CLHMS) designation for luxury home marketing, or any other course that NAR offers.  These courses have a good overview and grounding in what it takes to succeed in this niche.

 

We also suggest that they familiarize themselves with all aspects of the luxury lifestyle.  This includes knowing all the luxury car brands, what makes a luxury home in terms of finishes in kitchens, in bedrooms, in bathrooms, in closets, etc.  All these answers can be found when visiting stores and showrooms that display these items.  

 

What is also important is researching the top fashion brands and jewelry.  If they understand what is behind the appreciation of these high end items, they will understand the people who buy them. We feel that is another important part of the education needed to work in the high end sector of the real estate market.

 

Learn about the art and antiques marketplace, and the auction houses that sell them.  This is one the interests that many wealthy individual appreciate and enjoy.  One of the legendary high producers in selling luxury homes attended luxury auctions with a list of homes she had listed. 

 

We also suggest that they thoroughly study the psycho-graphics (lifestyle and habits) of the rich.  Not all fit the media's description of the rich and famous.  An eye opening book to read is The Millionaire Next Door, which describes the rich who are the very opposite of the commonly held image of the rich and famous.

 

There are many legitimate research organizations who have identified exactly who the ultra high net worth are in terms of their professions and their interests.  Research and read, and keep reading,  People change, and one has to keep up with the changes.

 

Develop excellent manners.  Take a course on manners which include table manners and social manners. Excellent manners will open doors, bad manners will lock you out.  Develop a compassionate heart.  Don't judge, understand.  Be kind.

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Written by Ron & Alexandra Seigel-

 

CAN YOU STATE HOW YOU ARE DIFFERENT AND BETTER THAN YOUR COMPETITION IN LESS THAN 30 SECONDS?

 

ABOUT:  Luxury Real Estate is a high stakes game. Commissions are substantial! We help luxury real estate professionals get to the listing table more often and win listings more frequently.  If you want to be the market leader, the personal or company brand that your target market thinks of first and refers most often, you need an Elevator Statement to accelerate the process.  We can get you there!

Your Elevator Statement is a succinct and persuasive summary of your extraordinary promise of value, your unique selling proposition.  In a time-starved world the attention span of your target market is shrinking.  To instantly convey what sets you apart from the crowd you need to be able to answer EACH ONE of these 3 questions in less than 30 seconds.: 1) What Do You Do?; 2)  How Do You Do It?, and;  3) How Are You Different?.  Can you state how you are different and better than your competition in less than 30 seconds?

Watch the video above to see and hear how we do it. 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 08/15/2017 01:00 AM
  2. Praful Thakkar 07/01/2017 10:39 PM
Topic:
Real Estate Best Practices
Groups:
Bananatude
ActiveRain Contests
Old Farts Club

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Rainmaker
3,729,181
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

M.C. Dwyer I am not surprised based on where your market is.  Not all wealthy people are identical, and I feel that even if they drive expensive cars and love jewelry, they have their own genuine character and we appreciate them as much as the type you cited.  We worked with all the luxury personalities and enjoyed them all.  Which is why, I wrote the last paragraph!  A

Jun 27, 2017 03:24 PM #61
Rainmaker
490,371
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Mostly, you have to be comfortable in your own skin. There's nothing worse than someone who pretends to be something they are not. And you certainly don't have to be "one of them" to sell to them. You just need to know what you are talking about.

Jun 27, 2017 04:36 PM #62
Rainmaker
1,376,008
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Ron and Alexandra, I appreciate your honesty, best advice to follow is your last paragraph. 

Jun 27, 2017 06:12 PM #63
Rainmaker
113,710
Dr. Karen Lewis, Broker
K1 Realty Group - Pembroke Pines, FL
Residential for Sellers and Buyers in S. Broward

This is such an excellent article..I just got off the phone reading the article to another one of my colleagues..One never looks at it that way..Thank you again for sharing such a well put together article..

Jun 27, 2017 08:02 PM #64
Rainmaker
294,194
Melissa Jackson
Riverside Homebuilders - Sales Consultant - Springtown, TX
Your New Home Sales Consultant in Parker County

Congratulations on the featured blog.  This post made me stop and think... Apparently I'm not selling luxury properties.  Just do not fit in that catorgory and don't find all this 'learning" attractive.  Not the vehicles, jewelry, wine nor products.   Guess that's why I stick to horse properties and single family homes. I can relate to both.  

Now, historical properties interest me.  I have researched the market and would like to "learn" in this niche.  

Either way your ending statement is perfect advise. 

Jun 27, 2017 08:42 PM #65
Rainmaker
884,262
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Love it - what a great feature!   I'm also guessing it would be a good idea to read marketing descriptions of other listings to learn the terminology and possibly visit a custom home builder to see one of theirs being bult?  Love the idea of auctions and jewelry.  Knowing the different aspects surrounding luxury listings is important.  Great post!

Jun 27, 2017 08:49 PM #66
Rainmaker
1,354,039
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Those are some really good points.  I like your comments about having impeccable manners.  That will go a long way with any crowd.

Jun 28, 2017 07:40 AM #67
Rainmaker
439,893
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Specializing in Brookside, Waldo, Prairie Village

Interesting blog. One thing I have wondered is if as an agent, you need to also live the luxury market lifestyle.  The agents I see here that work with the 1% of the 1% also live in more expensive homes, join country clubs, and generally associate with upper income folks. This makes sense to me as so many referrals come from friends you know and hang out with!

Jun 28, 2017 08:19 AM #68
Rainmaker
3,729,181
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Mary Hutchison, SRES, ABR 

We worked with someone in San Francisco whose competition were two ladies both well connected and with SF heritage behind them.  It was said of one of the agents that all she had to do was have high tea with friends and she would end up selling and listing several homes.  The other one was also known in a different circles of wealth by virtue of her husband"s connection.

When we studied our market, we found that our client's nice was the new wealth that sprung from Silicon Valley and the new economy.  Her ability to relate to all types of people spawned the term of "hip luxury".  She did not live in a mansion of a country club setting.  She lived in a "hip" area where the original Google founders were buying.  A

Jun 28, 2017 11:00 AM #69
Rainmaker
3,729,181
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Melissa Jackson we had a good friend who did nothing but historical homes  She knew everything there was to know about rehabbing them, she had done that a few times, and lived in one.  Same principle apply whether you are in luxury or historical homes.  I am sure if you choose that pursuit you will be very successful.  A

Jun 28, 2017 11:02 AM #70
Rainmaker
125,401
Stavrula "Sam" Crafa, RNC,GRI, CDPE, PSA
Future Home Realty - Seminole, FL
Providing the integrity and service you deserve.

I was referred a potential seller of a high end home. When I contacted him, he asked me what was the highest priced home I had ever sold. He said I wasn't the right fit because his house was twice the price of the one I sold. I get that marketing a high end home takes more effort, higher quality marketing campaign and you must know how to reach the people with an appropriate income level. But beyond those things, isn't selling a high end home similar to selling any home? Is the process really all that different and if so, how... generally speaking. 

Jun 28, 2017 01:07 PM #71
Rainmaker
3,729,181
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Stavrula "Sam" Crafa, RNC,GRI, CDPE, PSA 

Yes and no is my answer to your question.  For one thing, the only pre-approval that you need is usually from a private banker who knows their qualifications, and they can talk to the seller is the buyer really likes the house and wants to make an offer.  

It costs more $$$ to market a luxury home, because there are less people who can afford the home.  You have to know where those buyers are, and use some print ads as well as professional photography and print beautiful brochures.  

Once you learn the ins and out, it is the same process.

Jun 28, 2017 01:45 PM #72
Rainmaker
849,938
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Do not judge a person by what he drives or wears. In our metropolitan area if a person own his home he is in mil club. 

Jun 30, 2017 09:29 PM #73
Rainmaker
849,938
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

My first few listings were high end. The people happen to like me.  Later, I realize the estates contract often involves several lawyers trying over power each other. You are dealing with wealthy people with big greedy ego.

Jun 30, 2017 09:40 PM #74
Ambassador
4,002,080
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Ron and Alexandra Seigel - not only bookmarked but also re-blogged.

An answer that we eluding me for a while - now at least I have some direction. Thanks a lot for this post.

Jul 01, 2017 10:40 PM #75
Rainmaker
39,795
David Wright
Benchmark Realty, LLC - Brentwood, TN
Real Estate Refined

I was informed several years ago in a seminar on the high-end clientele that the road to reach these people is what you stated above. Know their habits, their desires and where they shop. I might add, join the social circles that overlap with them, big celebrity events, fund raisers, the country club membership if your budget allows, art museums and their exhibit openings, symphony concerts, and ballet, the list goes on.  

Also, check out Hugh Thomas Lorch YouTube episodes on how to break into the luxury home market.

Jul 31, 2017 03:22 PM #76
Rainmaker
1,612,973
Lottie Kendall
Pacific Union International - San Francisco, CA
Serving San Francisco and the Silicon Valley

somehow I haven't yet read The Millionaire Next Door - I think that should be the next team book Rachael Kendall and I should read.

Aug 15, 2017 08:48 AM #77
Rainmaker
268,537
Mark Artesani
Keller Williams Realty - Fountain Valley, CA
Huntington & Newport Beach, Fountain Valley Homes

Does watching the Millionare Agent on Bravo count?

Aug 16, 2017 01:41 PM #78
Rainmaker
3,729,181
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Mark Artesani personally, I don't find it representative of great luxury agents we personally know in Los Angeles.  They are consummate professionals, and after the first show, we never tuned in again.  A

Aug 16, 2017 03:13 PM #79
Rainmaker
577,599
Jane Chaulklin-Schott
TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL
TeamConnect Luxury Homes - Orlando, Florida, 32836

Although our family real estate office sits in the center of luxurious Orlando homes, estates, and villas, I have spent the last couple years getting an education on a luxurious resort/vacation/holiday rental community of million dollar mansions and estates.  It definitely is a learning process whether working with 15 Bedroom/15 Bath, 20,000 sq. ft. homes under construction or $100,000,000./ 500 capacity ballroom estates on the market. Your post has some great steps.  I recall a number of year back while in training, CLHMS, we were told to remember that many people of privilege and wealth are used to getting what they want and with a snap of the fingers...be prepared that they are not exactly the same as the people you usually meet.

Jun 03, 2018 06:02 PM #80
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