It’s essential for luxury real estate professionals to deeply understand their housing market and stay current on popular industry trends to succeed in working with affluent clients.
The global pandemic has affected the luxury real estate markets in interesting ways, such as creating an extremely high housing demand but low inventories due to increasing raw material prices because of factory shutdowns. Therefore, your potential clients might be hesitant to sell or buy their next properties because the media claims “nothing” will be available for purchase in today’s hot real estate markets. They might have chosen to leave their options open, or they may ask for guidance about the next move.
Some affluent sellers may plan to purchase multiple vacation homes in different parts of the country. Others contemplate lifestyle changes with the goal of downsizing so they can travel more frequently or extensively. Still, others will opt for an urban high-rise condo or build a new home in a gated golf-course community. No matter their decision, they will likely look to you for advice. Arm yourself with pertinent information, and be ready to answer some tough questions during your listing appointment.
Do Your Research
When preparing for a listing appointment with a potential client, it’s imperative that you do some advance research on their neighborhood of choice, including various home styles and amenities. Familiarize yourself with the location of country clubs or golf courses, business centers, entertainment options, and healthcare facilities. Be prepared to discuss the merits of the area, as well as the best features of the client’s home.
The goal is to instill credibility in your business and confidence in your clients. They need to trust that you’re a local neighborhood expert and that you can buy or sell their home in this hostile market. Arm yourself with the facts that display your professionalism, including data that pertains to pricing recommendations and knowledge of the distinctive features of the home and community.
You will also want to do a preliminary MLS search for currently listed properties, recently sold, and a comparative analysis of selling price versus listing price in recent months. Demonstrate your competency through your depth and breadth of knowledge rather than simply giving prospective clients a “laundry list” of procedures or your preliminary plan for marketing their home. Follow up your verbal presentation with a detailed written recap of your discussion and your final marketing suggestions and pricing recommendation.
Anticipate Client Questions
While it’s hard to prepare for every single question your client might ask, it’s best to anticipate these common questions and prepare your answers:
- What is the average length of time between listing and contract?
- What is the average difference between list price and sold price?
- Are local homes still selling for higher than the listing price?
- Will my privacy be protected while listing my house?
- Will you be present for all showings?
- Will I be able to find a replacement home if I sell now?
- Is this the best time to sell?
Expanding Your Referral Network
The best approach to working with the upper-tier is to build a referral network with high-achieving real estate professionals in different markets and locations. You can call on their experience and expertise for pertinent information about new locales and build a referral network that will help you expand your influence and take advantage of new opportunities.
How can you expand your referral network? Aside from using social media platforms and personal references, being a Member of The Institute allows you access to thousands of real estate professionals throughout the United States and Canada.
The Institute also offers a wide range of training and resources to invest in yourself at any stage in your luxury real estate career. Ready to take the next step? Reach out to our team today for more information.
Good summary – in our resort market preparation is key.
Good and pertinent points on preparing to work with affluent clients in this changing market!