As we prepare for 2024 after what has been a largely unpredictable year, one thing is certain: success happens when we focus on things we can control. And what is the one thing all of us have control over? Our mindset.
Whether you’re a brand new luxury real estate professional or you’re a seasoned pro, there are important perspectives to consider (or reconsider) before the start of the new year. In this two-part blog series, we take a deep dive into re-setting your mindset.
LET YOUR EXPERTISE SHINE
In this challenging market, both buyers and sellers need an expert more than ever. The affluent surround themselves with experts for all their other business needs, so it makes sense that they would do the same for real estate.
When they are considering their next purchase or sale, they are the first to recognize that working with a true professional is critical to achieving their goals, but first you need to prove that expertise. There are far too many real estate agents claiming to be number one, or to have the most sales, and for the affluent, there’s a lot more involved than simply believing someone’s marketing spiel when they make their decision on who to use.
One tip is to become the source of relevant and reliable information about the luxury real estate market. Showcase your local expertise by providing insights into what is selling, where, and why, in a professional monthly report. Also, include information about current trends, as well as insights, into your local market compared to the bigger picture happening in North America.
Did you know that Members of the Institute have access to over 145 local luxury market reports as well as a North American report each month? Take the opportunity to leverage these reports and connect with both potential clients and other professionals who service the elite, from a position of knowledge.
BUILD A NETWORK FOUNDED ON TRUST
Trust is key, and referrals are very high on the affluent’s preferred method of choosing a realtor. Again, it’s not about saying that you are trustworthy, it’s about proving it.
A simple way to build that trust is connecting in non-real estate environments. Attending community events, social gatherings, or being part of local committees or boards are just a few of the ways to build connections with potential clients and other high-profile professionals.
Did you know the number one hobby/pastime of the affluent is philanthropy? According to Wealth-X, an Altrata Company, North America accounted for more than half of the global ultra-wealthy donations, at $91 billion in 2022. This reflects our region’s elevated wealth and longstanding tradition of public giving.
Be careful, the real key to building trust is to be authentic. If attending events is not ‘your thing,’ it can quickly become detrimental as its easily identifiable. After all, the affluent didn’t get to where they are by not being able to read the room! This doesn’t mean you can’t find events that match your personality, it just means that you need to be selective and find opportunities that interest you too. It’s easier to connect with people who have similar interests.
REMEMBER YOU ARE SELLING A LIFESTYLE
When it comes to purchasing a luxury home, price isn’t always the deciding factor. The affluent care about value for money, but also want to make sure that the property can offer them unique experiences and attractions, and reflect their personality.
A home that offers a mix of tangible and intangible amenities and features, some of which they may not have previously considered, also comes with one strong demand from many of today’s affluent – they want a move-in-ready property.
In a recent article from Mansion Global on pre-furnished condos, the second headline says it all, “They Could Be Worth the Price, if Time is Money.” This new trend elevates the concept of turnkey homes to a higher level – where everything from the rug to hand towels are included in the sale.
If you’re coming from the traditional market, or if you’re not accustomed to luxury living yourself, paying too much attention to price can be a hard habit to shake. Just like your wealthy clients have learned to stop limiting themselves, you’ll have to learn that while a bird-shaped swimming pool or a sunken swim-up bar may not sound like something anyone would need, it’s not really about need. Once you get into the upper-tier market, it won’t be uncommon to show homes with seemingly outrageous amenities that someone doesn’t know they “need” until they see them.
We’ll continue this two-part series in the next Luxury Insights article!