As a real estate agent, your job is to help clients buy and sell properties. There are certainly some fundamental concepts that apply to all markets, all individuals, and all properties, but if you want to be a breakout success, it’s important to adjust your approach to your audience.
One of the most popular areas of focus for real estate agents is luxury real estate, and for good reason. Luxury properties tend to sell for more money, resulting in a higher commission, and the deals tend to be more prestigious and exciting.
But if you want to target luxury real estate buyers successfully, you’ll need to learn how they think (and how they make purchasing decisions). So how exactly do luxury real estate buyers think differently?
They Have Established Taste
For starters, most luxury real estate buyers have established taste. New homebuyers tend to be indecisive, exploring as many options as possible to figure out what they want. By contrast, luxury buyers often have a preconception of the type of home they want, long before they start searching for it. They may be a first-time homebuyer, but they’ve almost certainly lived in a luxury space in the past.
In some ways, this makes your job easier; you won’t have to babysit your clients as they attempt to figure out what they want. But it also means you’ll have to filter out properties with greater refinement to meet their expectations.
They Want Space
Luxury real estate buyers also tend to want space. They may not be interested in a gigantic space with several acres of land, but they typically want enough of a yard to work with and enjoy themselves in. They also want space inside the property, optimizing for large houses that have plenty of rooms and a sizable area to lounge and entertain others.
You can use this information to help find large, spacious properties for your buyers – and do a better job marketing the space of the properties you’re trying to sell.
They Want Privacy
Real estate buyers with a high net worth rate their number one concern as privacy. They don’t want nosy neighbors and invasive passersby to gaze at them when they’re trying to relax. They want a space that’s quiet, isolated, and at least somewhat distant from neighbors. Properties with high fences, privacy features in the yard, and those with distance from other properties tend to be more hotly desired.
Again, you can use this information to your advantage regardless of whether you’re buying or selling. It can help you find the right properties to showcase or help you close a deal.
They Want Niche Expertise
Luxury real estate buyers and sellers are probably used to working with skilled professionals, both in their personal and professional lives. Accordingly, they want to work with a real estate agent who functions as a niche expert.
If you want to be seen as more appealing and more helpful, you’ll need to demonstrate your unique qualifications, such as:
- Neighborhood. You can market yourself as an expert in one specific neighborhood. If you’re intimately familiar with the aspects of a certain area, such as its crime statistics, school districts, and other information, people will trust you more with properties in that area.
- Demographic targeting. You can also optimize your strategy to target specific demographics. Obviously, you’re already targeting luxury buyers and sellers – but you could also try to focus on retirees, members of the LGBTQ+ community, or other cohorts.
- Knowledge and experience. Sometimes, you can demonstrate your expertise through sheer knowledge and experience. If you have ten years of experience and an in-depth knowledge of all things real estate, your luxury buyers and sellers will be much more likely to work with you.
They Need Connections
High net worth individuals tend to establish themselves, at least in part, through the power of connections. They network often and tap into the power of their network for job opportunities, service, and personal recommendations. If you want to provide them with more value, you’ll need to help them flesh out that network, recommending experts like landscapers, contractors, and other experts.
Communication Is Key
All real estate clients want a good communication experience, but for luxury real estate buyers and sellers, it’s even more important. Make sure you respond to messages promptly, remain articulate and thorough in your communication style, and adapt to the needs of your client.
Learning Through Experience
It’s hard to break into the luxury real estate game, especially with the sheer volume of competition you’re going to face. But as you work with more clients, gain more experience, and start building a reputation, it’s going to become easier.
Keep working to improve your knowledge and improve yourself, and eventually, the deals will become much easier.