If you’re looking for a way to dramatically improve the average value of your transactions, what better way to grow than by targeting higher price points? Niching down to luxury listings isn’t easy, but could be the answer.
As any entrepreneur, business owner, or marketer knows, there are riches in niches. In other words, the more granular you get with your target audience, the better your chances are of penetrating that niche and experiencing success. The same is true in real estate.
Whereas most agents target everyone, the most successful agents drill down to very specific niches. And if you’re looking for a way to generate higher commissions as an agent, the luxury niche could be worth your focus.
The luxury niche, which varies in every market, but is typically thought of as anything above $1 million, is highly competitive. However, most real estate agents never do what it takes to actually pursue this niche. If you’re willing to go through the process of targeting and tackling the luxury portion of the market, there’s no reason why you can’t be successful. Here are a few tips:
At the risk of sounding overly vain, you have to be mindful and conscientious of your image. Luxury real estate agents attract luxury clients. And luxury clients have particular expectations and tastes.
While nobody is defined by their possessions, it’s hard to position yourself as a luxury real estate agent if you don’t have some accoutrements of wealth. In other words, you need a nice vehicle and clothing. (No offense, but you’ll be hard-pressed to find a luxury homeowner who hires an agent driving a Toyota Yaris.)
Any successful real estate agent needs a unique selling proposition (USP). This is a single phrase or sentence that describes the unique value you provide to your clients. It should be specific, unique, and client-focused.
Your USP is the foundation upon which all of your marketing and branding sits. It’s the underlying value that you provide. As someone looking to target the luxury niche, your USP should reflect this. Think about the specific things your target clients want, as well as the specific strengths you bring to the table. Your USP is somewhere at the intersection of these two categories.
If you want to be a luxury real estate agent, you have to be omnipresent in your market. In other words, you need to stay top of mind all the time. You can’t just have a billboard, or only rely on referrals. You need a sweeping marketing strategy that intersects your target clients every time they turn around.
In addition to the obvious strategies, such as social media and PPC advertising, consider doubling down on investments like luxury real estate postcards. Postcards are cost-effective and engaging. When used appropriately, you can drip on targeted groups of luxury buyers and sellers at a very low price point.
If you’re a general agent with a very generic target audience, you can get away with generic knowledge. But if you’re going to niche down and focus on luxury clients, you better know your stuff.
“Keeping up to date on the market will take you far in luxury real estate,” Luxury Home Marketing explains. “Make sure that you have a well-rounded knowledge of upper-tier builders and developers, and a full understanding of architectural terms and trends.”
The best way to stay up with the latest trends is to subscribe to all of the industry’s top newsletters, blogs, and resources. Spend at least an hour a day reading, watching, and listening. (You can also learn a lot by browsing luxury listings and studying the terminology they use.)
Networking is extremely important, regardless of your niche. But if you’re targeting luxury buyers and sellers, you’ll need to optimize for where you network.
As you pursue luxury homeowners, think about where high net worth individuals spend their time in your area. This could be business networking groups, country clubs, golf courses, or even very specific neighborhoods. When it comes to online networking, LinkedIn is an excellent choice.
The luxury real estate market is competitive. However, any time there’s competition, it’s usually a good sign that it’s something worth pursuing. By implementing some of the tips outlined above, you’ll give yourself every advantage possible.
It could take months or years to fully realize your goal, but the results are sure to follow.