The face of luxury real estate is transforming faster than ever before.
Technology has made it easier than ever to come into “new money” — producing a new kind of luxury buyer and seller with different wants, needs, and expectations.
Their spending habits bear little resemblance to “older” generations of money, and their relationship to their luxury real estate professionals can be markedly different, as well.
The question for luxury real estate professionals is, “What do these ‘new money’ clients really want?”
To answer that question, we spoke with luxury real estate coach and expert Debbie De Grote to learn how to work with these luxury clients the way they want to be worked with.
Of course, one thing to consider is generalities can only get you so far — especially in real estate.
Ultimately, a successful relationship comes from listening to each individual client and letting them take the lead.
And at the same time, it’s good to have an idea of what to expect so you can be ready for absolutely anything.
What Are the Key Differences Between “Old Money” and “New Money”?
You may already expect “old money” clients to place more value on discretion, but another key trait of “old money” clients is quite literally how they view their relationship with their chosen luxury real estate professionals.
Debbie explains, “Often because their money has been in their family for generations, they may view the real estate professional they’re working with as a service provider. They might see them as someone outside of their circle, because they’re a little bit protective and cautious about letting people into their world.”
She also describes them as more “quietly conservative” and “low key at times,” so it may be hard to distinguish them as the “rich and elite” when you’re out networking.
One of her successful students who works in an “old money” area of Southern California worked his way in by letting his clients take the lead and set the pace.
She says, “If they want more of a relationship, they usually let him know.”
New money, on the other hand, can be a bit “splashier,” Debbie says. Adding, “They may want to hang out, or wine and dine.”
But as a general rule?
“Whichever group you’re with, it’s always good to be gracious, polished, and err on the side of more classic and conservative…Also, do your research. Google them, go on LinkedIn, find out what they do and try to get in that zone of what they might expect,” she says.
What Is One Big Myth About “New Money” Clients?
There’s a myth in luxury real estate that “new money” clients, especially those who are younger, aren’t loyal to their luxury real estate professionals.
There’s an idea that “new money” thinks they know it all, and they want to go online to do it all on their own.
Just because this group is more likely to go online and check an agent’s website and social media presence to see if they resonate, Debbie says her top producing students who shine as market experts and consistently provide 5-star service have no problem retaining these clients.
The difference is “new money” knows how easy it is to get the kind of service they want with a quick internet search — so they likely won’t settle on a luxury real estate professional who doesn’t showcase their expertise online or doesn’t come highly recommended.
And since they will probably want to compare listings on their own at first, it’s more important to them that you know how to translate this information.
This means pointing out the discrepancies between what’s online and what’s really on the market, what listings truly sold for and why, and showing up with opportunities they would have no way of knowing about unless they were connected to an expertly networked luxury real estate professional.
In other words, the “loyalty” myth is easily overcome by bringing more information, value, and guidance to the table than they’re able to find on the internet.
And with so much available online, these clients do require luxury real estate professionals to be a few steps ahead.
Fortunately, the Institute’s curriculum goes deep into the behaviors and expectations of successful clients and how to work with them.
Members also have full access to our Online Wealth Lookup tool, allowing you to learn nearly everything you need to know about these clients — from their actual financial profile to their other successful connections — before stepping into a meeting with them.
Ready to Earn More As a Luxury Real Estate Professional?
Becoming a Member of the Institute gives you access to some of the top producers in the industry and done-for-you marketing tools that give you a tremendous advantage.
The Institute also offers a wide range of resources for you to invest in yourself at any stage in your luxury real estate career — even if it hasn’t begun yet.
Visit your Membership Portal for brand new training sessions, as well as our book, Rich Buyer Rich Seller: The Real Estate Agents’ Guide to Marketing Luxury Homes, which is available for free to all Institute Members and also available on Amazon.