If you’ve ever wondered how to make more money as a real estate agent, you’ve probably already figured out transitioning to the luxury real estate market is a smart first step.
You make more per transaction. Your clients are more real estate savvy. And you get to enjoy touring amazing estates and meeting interesting people.
But what if the return on your time and effort isn’t as immediate as you thought it would be? How do you make more money as a real estate agent if you’ve already transitioned to the luxury real estate market and aren’t exactly swimming in real estate success just yet?
Fortunately, there are a few ways to pad your luxury real estate practice with more income. What’s more, these options deliver the added benefit of making your income a little more predictable, too.
With that in mind, here are a few ways to make more money as a real estate agent in the luxury space:
1.) Choose a Luxury Real Estate Niche
If you want to make more money as a real estate agent in any market, choosing a niche is usually the first step (if we’re not counting receiving more education). The reason is simple: people prefer specialists — especially successful clients in the luxury real estate space who tend to have unique needs and interests.
Think of it this way…
If you’re planning a wedding, you want to hire a wedding photographer — not an art photographer or someone who says they can “do anything” (even though it isn’t their specialty). You want someone who specifically knows how to photograph weddings (and could probably stage your entire wedding party for the perfect photo in their sleep).
The same goes for clients who are looking for a real estate professional. Someone relocating internationally wants a real estate professional who specializes in international relocation, and someone who wants to invest in luxury commercial properties likely wants to work with someone who knows that unique market like the back of their hand.
In the beginning, “niching down” can feel intimidating. By not aiming to appeal to everyone, it can feel like you’re cutting yourself off from opportunities. Except, the opposite is true.
In reality, focusing on one type of client (or maybe two) quickly builds your authority in that niche. After a while, you become the expert in your area of the market — effectively beating out competitors whose limited experience in your niche feels lukewarm to potential clients who would rather pay more for your expertise.
To start turning your focus towards a niche, pick one you feel most connected to or interested in and put your focus there at least part time. If you haven’t had much experience in that niche on your own, you can find another luxury real estate professional who does have experience in that niche and see if they’re interested in co-listing to get the ball rolling.
2.) Prospect Luxury Expireds to Make More Money as a Real Estate Agent
Though they may take a bit more effort, local luxury expired listings can be a goldmine for luxury real estate professionals who understand how to approach them. While it may feel like there’s a lot of competition (and in some cities there certainly will be), many luxury real estate professionals pitch their services too soon to land the listing.
On the other hand, a luxury real estate professional who first leads with empathy to connect with the frustrated expired seller, delivers a valuable pre-listing package, and creates a solid follow-up plan and sticks to it, is the one who is more likely to win the business.
In fact, expired listings are a great starting point for many new luxury real estate professionals to make more money because it gives them a chance to make a name for themselves in their market as someone who actually gets results — and that’s all any client wants.
3.) Get Certified in Luxury Real Estate Marketing
Again, clients want to know they’re working with an expert. The more you can prove you’re a specialist in whatever they need, the more likely they are to trust you. Even better, they’re also likely to seek you out rather than you having to chase them down.
The Certified Luxury Home Marketing Specialist™ (CLHMS™) designation shows prospective affluent, high-net-worth, and ultra-high-net-worth clients that you’re up to date with the latest luxury real estate marketing strategies and that you’ve successfully closed a few transactions in the luxury space.
Beyond that, CLHMS™ designees are part of an exclusive directory through the Institute of Luxury Home Marketing, where clients can easily find the right luxury real estate professional for their listing or purchase. This directory even connects luxury real estate professionals to each other for strategic partnerships and referrals.
While the increased visibility is enough to help many luxury real estate professionals earn more, the Institute also provides training, done-for-you marketing materials, and elite networking events.
To learn more about earning your Certified Luxury Home Marketing Designation, click here.
More Resources to Help You Make More Money As a Real Estate Agent In the Luxury Market
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.