If you ask around the real estate market, many real estate professionals have mixed feelings about co-listing. Plenty of real estate professionals have never co-listed a property with a colleague and aren’t sure why they would do so in the first place.
In the luxury real estate market, where home values are higher (and so are the stakes), co-listing can be a smart option to learn quickly and minimize risk.
If you’re on the fence, here are three benefits of co-listing a luxury property:
Benefit #1: Co-Listing Is One of the Easiest Ways to Sell Your First Luxury Home
Arguably the biggest benefit of co-listing is that it’s one of the best ways to get a taste of the luxury real estate market.
Unlike breaking into the traditional real estate market where clients want to know if you’ve sold a home in their neighborhood, luxury clientele want to know if you’ve sold any homes at a similar price point. If you haven’t, co-listing can be your best option to handling that question.
Although it might feel intimidating to ask a more experienced luxury real estate professional to co-list with you, celebrity luxury real estate professional and Institute instructor Kofi Nartey suggests positioning the opportunity as mutually beneficial rather than emphasizing that it’s a learning experience for you.
More experienced luxury professionals who have the time and space to co-list with you will likely recognize that commission on half of a luxury listing that they didn’t need to secure on their own is better than no commission at all.
Benefit #2: Co-Listing Can Help Experienced Luxury Real Estate Professionals Break Into New Niches and Price Points
If you’ve spent any time in luxury real estate, you know that “luxury” is a spectrum of price points, demographics and markets. At some point, you may find you want to broaden your horizons or find a new niche or price point to work with.
When that happens, much like co-listing as a new luxury real estate professional, co-listing can help you bridge the gaps in your experience and let you dip your toes into other specialties until you find the right fit.
Another benefit of co-listing is the opportunity to experience new niches and price points.
Listings in the very upper tier can be few and far between. Unlike the market closest to the luxury threshold, there may be fewer opportunities to take new listings in general. If you’re looking to ascend the luxury pricing spectrum, co-listing can help you break in despite the exclusivity toward the top.
Benefit #3: Co-Listing Gives You an Opportunity to Learn New Strategies
Maybe you’ve received some less-than-great feedback from a recent client, or maybe you’re feeling like your marketing strategy is getting stale. Whatever the case, sometimes co-listing can spur new ideas and open you up to some professional feedback which can help you get back on track.
Although this isn’t the best reason to co-list, it’s certainly one benefit of co-listing if you’re feeling discouraged or in need of a refresher. If this is the case, be upfront with your listing partner to let them know you’re actively looking for feedback and a fresh perspective and see if they’re willing to provide that as part of your deal.
Since co-listing doesn’t have to be a 50/50 commission split, offer them a bit more for their extra guidance. Ideally, this would be best with a mentor you’ve established a relationship with versus an experienced luxury real estate professional who you don’t know as well.
Looking for a proven framework to grow your luxury real estate practice?
The Institute’s in-person Luxury Live events are back and — for the first time ever — we’ve introduced a Member Happy Hour to give you even more time to network with other luxury real estate professionals (or aspiring luxury real estate professionals).
The curriculum for these exciting two-day events is based on our proven 7-Step Luxury Marketing Blueprint to help you break into luxury real estate or reach the next level in your luxury real estate career.
To learn more and see when Luxury Live is coming to your city, click here.