Trying to successfully generate a full-time income as a traditional real estate agent requires tenacity and extra legwork. At a 3% commission, a regular agent needs to sell 25 mid-priced homes every year to earn an annual salary of $150,000. Although many agents hit this target each year, most agents earn much less annually. That is why agents are turning to the luxury real estate market.
A Closer Look at the Luxury Real Estate Market
The luxury real estate market is lucrative for many agents. By selling one $5 million home, an agent would earn the same commission as selling 25 homes at the median price. However, people cannot just jump into the market and start selling homes. Chances are good that new agents will have to compete with a handful of brokers who have a stranglehold on the local market. Here are some tips to help agents break into the luxury real estate.
Network
Building a successful career in real estate requires developing a network and delivering a service. Luxury agents who earn the highest commissions know their audience. People who want luxury real estate typically have a high net worth and are specific about what type of home they want to buy. To break into the luxury markets, agents must learn the habits of high net worth clients, and this starts with networking. New agents should start attending networking events in their area that are specifically for real estate.
Learn From the Pros
Successful real estate professionals know that learning from the pros is the first place new agents should start. Since luxury buyers are different than regular buyers, new agents should learn how to treat high-end clients from those who have a proven track record of success. For example, luxury buyers want “amenities” such as invitation-only open houses and private showings of new listings. High-end buyers want other special touches such as food, specialty wines and even live music. By learning the habits of agents who know how to treat their clients, new agents can build their foundation by implementing every tool used by the pros.
Success in the luxury real estate market starts by understanding that high-end clients want ultra-exclusivity, and they want their agents to pamper them. Luxury buyers do not buy million dollar homes because they are economical. Instead, they buy these homes because it makes them feel good.