So You Want to be a Luxury Real Estate Agent? Proven Strategies from a Seasoned Broker

Many agents get excited at the thought of increasing the average price of their sales with high-end, luxury residential homes. Although the idea of high sale prices and fewer units may seem like a dream, it is not for the faint of heart or the light of budget.

Here are six steps for breaking into the luxury residential real estate market:

1. Choose your slice of the market.

Define your target market by answering three questions: 

1. 1. 1. Who is my ideal client?

      2. What do they do for work? For fun? For travel?

      3. Where are they?

2. Adopt the luxury mindset. 

You’re not a Realtor; you’re a business owner! 

Shift your mindset from a real estate agent to a marketer focused on designing a premier experience for your clients. Clients buying or selling luxury real estate expect us to go above and beyond while keeping it luxe.

3. Define a start date. 

Do you plan on breaking into the luxury real estate market tomorrow, in a few months or a couple of years?

In addition to choosing a start date, agents entering the luxury market must decide whether to be a solo agent or join a team. Joining a dominant luxury team is advantageous because it leverages the gatekeepers of luxury. Prospective luxury agents must also decide whether to give up their current “bread and butter” job.

4. Define your target area and how to prospect them.

Pick a target area and determine the most effective ways to reach potential clients.

Examples include community events, weekly or monthly email updates, handwritten quarterly updates delivered via the postal service, and cold phone calls. You may even consider organizing an event to establish yourself in the market.

Another strategy luxury real estate agents use to dominate a particular neighborhood is farming neighborhoods, also known as geographic farming. Agents select a target community and consistently market to residents within that area to build rapport and trust. In turn, clients view the agent as a resource for knowledge and expertise about that specific area. Using geographic farming, you can gather information to provide clients with detailed insights on market trends, property values and neighborhood amenities, backed by comprehensive local knowledge.

The most important thing when finding your clientele is to be visible. Look to active community organizations and attend events for local country clubs, social organizations, charities, boards, schools and other community gatherings.

Make your personal brand reflect the market you’re trying to break into. If your target clients golf, you golf.

5. Establish yourself as a market expert and a clear choice.

Now that you’ve defined your target area, you must establish yourself as the go-to expert in your market.

Identifying your main competitors is crucial because it helps you understand your position in the market, gain insights into marketing strategies, gauge client expectations by understanding what your competitors offer, and keep up with the latest market trends and innovations.

Consider the following methods to identify your main competitors in the luxury real estate market:

1. Conduct thorough market research, including sales data, market share and online presence.

2. Analyze the online presence of potential competitors through websites, social media profiles and online reviews.

3. Attend local real estate events, luxury property showings and industry conferences.

4. Talk to your clients and prospects about their experiences with other real estate agents.

5. Join local professional associations and groups focused on luxury real estate.

By identifying and researching your main competitors, you can position yourself effectively, offer superior services, and succeed in the competitive luxury real estate market.

6. Build your brand.

Building a visual brand can be intimidating. If you’re inexperienced with graphic design, utilize free resources like Canva, which features various templates in an array of design styles. If you are part of a team, take advantage of in-house marketing support that focuses solely on designing marketing materials. Finally, actively use social media platforms like LinkedIn, Instagram and Facebook to build a following and share your luxury real estate expertise. 

Now that you have the tools and resources to start your luxury real estate agent career, you must build it.

Some final key takeaways: connect with a trusted personal advisor to offer guidance, adopt an “always be learning” mindset, and remember to set goals!