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I recently had the opportunity to meet with a new agent who is making strides in the luxury real estate market. Her typical price range hovers around $500,000, while luxury properties in her area command prices of approximately $1.5 million.
She’s been involved in the real estate business for two years, and she has deep roots in the community where she operates. She contacted me because I specialize in the luxury market in Park City, Utah, where the average price for a single-family home is around $3 million.
What was my best advice to an agent looking to break into luxury real estate? My answers may surprise you. You cannot be afraid to challenge yourself and dive in. Are these hurdles holding you back?
1. I am not proficient with social media. How can I demonstrate my expertise in luxury real estate?
The intricacies of social media deserve their own discussion, but to address your second query, think about what a luxury buyer seeks. You have to be intentional with your content planning.
Luxury buyers will most likely not engage in content that is created for first-time home buyers. As they will likely be using cash in their transaction, this target audience may not be impacted by content focused on interest rates.
I firmly believe that the content you put out there will attract a corresponding audience. I suggested that she immerse herself in communities with luxury homes, akin to Gary Vaynerchuk’s “digital mayor” approach. On broker tour days, explore luxury homes and showcase them in your social media posts with titles like “What $X Buys in {your market}.”
The more visually appealing the home, the better! If you can connect with homeowners, gather information about them—such as their backgrounds, multiple homes, asset portfolios, or the home’s history. Once you understand their needs, create content tailored to address them. You can also use ChatGPT to brainstorm content ideas.
2. Currently, my marketing plan only includes a newsletter. What tools should I use to boost my marketing presence for this target audience?
At a recent Luxury Connect conference in Las Vegas, a panelist emphasized that luxury buyers expect personalized content, not just being added to a generic list. Instead of simply including them in your mailing list, schedule times to send personalized text messages or make phone calls to check in, share real estate updates, or discuss recently available properties.
Provide a comparative market analysis (CMA) annually. Luxury buyers often have financial advisors, and you should aim to be their real estate advisor. Follow them on social media and LinkedIn (you can also set up Google Alerts) and reach out when you hear news of anniversaries or significant achievements.
3. My current income and lifestyle do not reflect luxury living. Will I feel like an imposter?
Half the challenge of breaking into the luxury market lies in believing that you can serve buyers or sellers with higher budgets than you’re accustomed to. Ultimately, we are all people. I once assisted a rising movie star who was just an ordinary person at the time.
Despite the attention she attracted, I realized she was just like anyone else. Luxury buyers, too, are ordinary people who value discretion and privacy. Shouldn’t we offer that to all clients? What matters most is what you know, how you treat them, your skills, and your communication with them.
While some may judge you based on appearances, I’ve found from my experience selling in Park City that luxury buyers can come in various forms, from ripped jeans and a baseball hat to a bathing suit and robe after a day of skiing (a true story!). Your jeans may be less expensive, but most won’t mind as long as you provide value.
4. What do luxury buyers discuss? I’m in coach while they enjoy a full meal in first class.
Luxury buyers often possess more than just high-end homes. They have fine jewelry, luxury cars, art collections, wine cellars, and more. These clients are discerning with their spending and meticulously selective.
Recently, at an event in New York City, Luxury Portfolio President and Inman Connect speaker Mickey Kahn emphasized how the luxury goods market influences luxury real estate.
While agents in traditional primary residence markets may not need to connect these dots, breaking into the luxury market necessitates a comprehensive knowledge of all things luxury.
For instance, I can readily discuss the most expensive homes in Vail, average prices in Aspen, and the details of high-rises on Billionaire’s Row in New York City without hesitation.
I attend events like Art Basel in Miami, where I engage with art dealers and collectors from around the world. Additionally, I participate in Inman Luxury Connect and regularly tour luxury properties in different markets during vacations. You don’t need to be an expert in every luxury aspect, but you should be able to engage in meaningful conversations.
5. Will I be able to relate to luxury clients if I’m not wealthy myself?
One of my earliest luxury listings was with a seller who chose me over a competitor in a fur coat because she found me more relatable. At the time, I was paying $1100 for a room in a shared New York City apartment and likely had a knock-off Kate Spade purse. Fourteen years later, we’re still friends.
What you project is what you attract. Even if a property isn’t your listing, offer to host open houses in high-end communities seek out gatherings where high-net-worth individuals congregate and join the conversation. Don’t flaunt your skills; instead, show them you’re relatable.
