Do you want to become a luxury real estate agent? It’s a smart move because you’ll be able to earn more money on fewer transactions.
But that doesn’t mean it’s easy. Lots of agents try to make the leap to luxury real estate, but few successfully break into that niche. So how do you make it happen?
You’ll find lots of articles online saying that the “secrets” to becoming a luxury real estate agent are to do your research, be prepared, and focus on marketing. Seriously? Those are the minimum requirements for being a competent real estate agent!
If you’re serious about learning how to become a luxury real estate agent, you need a plan you can put into action today.
With that in mind, here’s How to Become a Luxury Real Estate Agent in seven actionable steps.
Quick note: this post was originally published in May 2020. This is the new and improved version.
How to Become a Luxury Real Estate Agent
Step 1: Present Yourself As a Luxury Agent
Step one is basic but critical: if you want to become a luxury real estate agent, you need to present yourself as a luxury real estate agent. Appearances matter. And in the luxury market, they matter even more.
A couple of quick notes before we get into the actionable ways you can present yourself as a luxury agent:
- Remember “luxury” is a subjective term. Luxury in rural Tennessee looks very different from luxury in Beverly Hills. You know your market, and you know what’s expected of the high-class set in your area. Now you just need to emulate that image.
- Presenting a luxury image can get expensive. Consider it an investment in your business. As with any investment, you should spend strategically. Focus your money where it will be the most impactful. We cover several specific ways to do that in this section and throughout this article.
Here are a few ways to consider upgrading your lifestyle to present an image of luxury:
Online Presence
“Online presence” covers everything from your website to your listings to your social media profiles. Let’s take a quick look at each of these items.
First, your website. What does your website say about you and your business? If you’re just using a page on your broker’s site or you’re using a generic website template from a discount real estate website provider, you’re not projecting luxury. In fact, in today’s market of online searches, every single agent should have a quality website of their own. The good news is that this is far more affordable than you might expect. You don’t need to pay a web designer thousands of dollars. With today’s tools, you can actually build your own professional website for around $250 (and that amount includes 3 years of web hosting!).
Now, your listings. First, always, always, always invest in professional photos for your listings. You may even want to hire a real estate copywriter to write your listing descriptions. Outsourcing to professionals is a good idea even at mid-level price points, and it is a MUST if you want to be seen as a luxury agent. Now, if you’re listing $250,000 homes, sellers will not take you seriously as a luxury agent, so you’ll need to start listing more valuable homes and referring out any listing that doesn’t meet your minimum price point. More on how to get these new listings coming up in a bit.
Then, your blog. Surprised to see blogging as a must for luxury agents? Blogging is the best-kept secret in the industry! Blogging costs 62% less than traditional marketing but generates 3 times as many leads. This killer ROI is mostly because strategic blog posts boost your website’s ranking on search engines like Google. A higher ranking means more people find you when they Google popular keyword phrases like luxury real estate agent in [city] or luxury homes in [city]. This website is full of resources to help agents start a lead-generating blog. Mastering Blogging for Real Estate Lead Generation is the perfect place to start.
Finally, your social media profiles. If you’ve been following this blog for a while, you know I dislike social media. But I use it because it’s expected of a small business owner. And as an agent (luxury or not), you’re a small business owner. Even if you just follow a done-for-you social media content calendar, you need to be posting on social platforms. The primary way you’ll distinguish yourself as a luxury agent is via your imagery. If design isn’t your strong suit, invest just a few dollars in purchasing social media templates on Etsy. These templates are already professionally designed and curated. Make sure to get templates that are editable so you can add your own photos, contact information, and market statistics to make the posts unique. Or, if you’d like your social media posts designed for you fresh every month, join DRIP by Key Real Estate Designs!
Lastly, If you’re going to publish videos, make sure your filming location is high-end. And please, proofread your text before publishing!
Car
Would you be proud to take your luxury clients around town in your current car? If not, it’s time for an upgrade. In most markets, any luxury brand will work. You might be just fine with a comparatively inexpensive BMW 300 series. The important thing is to match your clients’ expectations. And of course the car should always be freshly cleaned inside and out.
Physical Appearance
The good news is you don’t have to be outwardly attractive to become a luxury real estate agent. The bad news is you do have to invest in some shallow appearance enhancements and maintenance. Let’s run down the list quickly. You should:
- be in reasonably good shape.
- always have a current haircut (to keep the cut clean, guys may need a cut every 3-4 weeks, and ladies every 4-6 weeks).
- dress professionally in high-quality pieces (brands may or may not matter, but tailoring is a must).
- be manicured (and pedicured if you’re ever in open-toed pumps).
- keep any make-up clean and professional.
- accessorize with high-end ties, belts, glasses, jewelry, handbags, etc.
Hangouts and Activities
Again, this may be shallow, but your prospects and clients will judge you by where you hang out and what you do in your off time.
Ask yourself what your desired high-end clients would think of your normal haunts. If there’s anything glaring, consider making a change. Maybe switch from good ol’ Starbucks to the trendy local coffee shop. Trade in your dive bar for a wine bar. Or upgrade your workouts from the affordable gym to the elite gym where you’re more likely to meet clients in your target demographic.
Offline Marketing Materials
You may not have many offline marketing materials (printed brochures, mailers, door hangers, etc) in this day and age, but those you do have should be of exceptional quality to properly represent your new luxury brand.
Step 2: Earn Luxury Credentials
Different credential programs carry different weight within the industry. If you can afford the most impressive designations, go for those. But keep in mind that sellers are not likely to know the difference between credential programs, so if you’re just getting started, you could choose any luxury designation to set yourself apart from the competition.
Here are a few certifications/designations to consider:
- Certified Luxury Home Marketing Specialist (CLHMS)
- Accredited Luxury Home Specialist (ALHS)
- Certified Luxury Real Estate Agent (CLRA)
- Global Elite Marketing Agent (GMA)
Step 3: Focus on High Net Worth Networking
Most of your real estate transactions probably come from your network of friends, family, colleagues, and acquaintances. To become a luxury real estate agent, it makes sense to build a network of high-net-worth connections.
The best way to do this is to go where high net worth individuals (HNWI) go. Live in the same neighborhoods, join the same gyms, and send your kids to the same schools. Of course living the same lifestyle as people who make substantially more money than you currently do isn’t easy! If you’re just getting started, you may not be able to live in the neighborhoods you want to work. How close can you get? Maybe you can’t afford the 90210 zip code, but 90211 is within reach. And you know that the least expensive home in the most expensive neighborhood is generally the best investment anyway.
And if you can’t afford to live where your clients are, take advantage of the opportunities you can. You can still work from the high-brow coffee shops in the best neighborhood, still join one of those gyms, and still get involved in volunteer projects in those communities.
Step 4: Gain Experience in the Luxury Market by Co-Listing
Getting that first luxury listing is probably the single biggest hurdle in your quest to become a luxury real estate agent. How do you convince a seller to trust their $1MM+ home to you when your highest value listing to date is only half that amount (or less!)?
Answer: you co-list.
As part of your HNWI networking, you should be reaching out to luxury agents you admire to see how you can help them. Offer to hold their open houses (if open houses are appropriate in your local high-end market), cover them while they’re on vacation, and like/comment/share their listings on social media (with their permission). And here’s a nice little bonus for you: by engaging with their listing posts, you’re helping your online audience see you as a luxury agent.
Once you’ve built enough social capital with these agents, ask if you can co-list with them. You’ll get a share of the commission in exchange for doing a good amount of the work. And you’ll be listed as a listing agent for the property, so you’ll be able to show future sellers that you’ve got a luxury listing under your belt.
Luxury listing agents may be hesitant to share a listing with you because their reputation is on the line. Make it easy for them to say yes by offering terms they’d be crazy to turn down. You’ll do 75% of the work for 25% of the commission, and you’ll provide regular updates to the luxury agent to keep them in the loop. As long as you present yourself as a luxury agent and the other agent can be sure you’ll uphold their high standards, they should be happy to allow you to co-list.
Step 5: Provide a Luxury Client Experience
All your clients, regardless of price point, should be treated to a luxury client experience. But this naturally becomes even more important for your high-end clients who are accustomed to getting white-glove service in their everyday lives.
Providing a luxury client experience is largely an exercise in common sense. Ask yourself what you can do to make the process as seamless and pleasant for your client as possible. Here are a few basics to keep in mind:
- Organization: you can’t afford to let any detail fall through the cracks. If organization isn’t your strong suit, you need to hire an assistant to keep you organized.
- Proper communication: set expectations, prepare your clients for each step of the process, be responsive, and proactively communicate any potential issues.
- Discretion: with high-end clientele, you’re more likely to run into issues of discretion; aside from the items you’re legally required to disclose, keep your mouth shut about your clients’ lives.
For a detailed primer on providing a luxury experience, check out The New Gold Standard: 5 Leadership Principles for Creating a Legendary Customer Experience Courtesy of the Ritz-Carlton Hotel Company.
Step 6: Collect and Share Testimonials
Collecting testimonials from happy clients and sharing them with the world is another example of something you should be doing as a real estate agent with properties at any price point. The most important thing about collecting and sharing testimonials as a luxury real estate agent is to have your testimonials coming from luxury clients. Prospective clients want to see testimonials from people who are in a similar situation to their own. So testimonials from other HNWIs are going to carry a lot more weight with your desired client base.
Once you have a new testimonial, promote it like crazy! Publish it on your website, share it on social media, blog about the seller’s experience, and use it in your other adverting.
Step 7: Earn Referrals
Referrals from clients generally result in similar clients since people refer you to their friends and family, who are often in the same socioeconomic group. So one happy high-end client can result in several more high-end clients. Focusing on earning referrals from your high-end clients is how you establish yourself as a luxury real estate agent for the long term.
The process of earning referrals is generally the same at any price point. It’s about providing service worth raving about, then reminding your clients to tell their friends about you.
My favorite tactic for generating referrals is to send a Congratulations or Thank You bouquet (of flowers, balloons, cookies, fruit, or whatever else would appeal to your clients) to places of work. This instantly gets people asking your client about the occasion and gives your client a chance to share your contact info with their colleagues.
For a step-by-step breakdown of earning referrals, check out How to Build a Referral Business.
Get a Small Win
Great victories are made possible by small wins. Before you move on with the rest of your day, get a small win!
Today’s small win challenge is to look at how you’re presenting yourself and make a list of the steps you need to take to appeal to luxury buyers and sellers. Take a look at your online presence, appearance, offline marketing materials, credentials, networking strategy, and existing testimonials. What do you need to change if you want to become a luxury real estate agent? Make your list, and spend the next week or two focusing on upgrading each item on your list.
In no time, you’ll be ready to ask for your first luxury co-listing, and you’ll be well on your way to becoming a luxury real estate agent!
