How To Become A Luxury Real Estate Agent Or Broker: Essential Tips And Strategies

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According to the National Association of REALTORS® (NAR), the average price of luxury real estate has risen to $430,000 over the past four years. What does this mean for real estate agents and brokers? Huge commissions!

However, you will face some challenges when it comes to selling luxury properties. These include getting your first sale and establishing a portfolio of successful deals. Luxury real estate is about selling a lifestyle, not just a property.

In this guide, we will share everything you need to know to become a luxury real estate agent or broker. We’ll also share how you can land your first deal and get those big commissions.

5 Reasons to Get into Luxury Real Estate

There are several benefits to working in the high-end real estate market:

✅ Earn higher commissions 

This may be the biggest reason for becoming a luxury real estate agent or broker. Selling more expensive properties means you’ll naturally earn larger commissions. A 6% commission on a property worth $430,000 is $25,800.

✅ Service fewer clients

If each deal is worth more, you can hit revenue targets and sell fewer properties. You might go from having 12 clients per year to only three. This gives you a chance to build solid relationships with your clients, as you can give them more of your time.

✅ Better partnerships

You can build relationships with luxury brands, architects, and interior designers. This enhances your professional network and may help you generate more leads.

✅ Professional growth

Handling high-value transactions may help you develop advanced negotiating skills as well as strengthen your marketing and sales abilities.

✅ Enhanced reputation

Selling luxury real estate successfully can improve your reputation, credibility, and authority in the real estate industry. The better your reputation, the more clients you’ll get and the more commission you’ll make.

Preparing to Become a Luxury Real Estate Agent

Here are some of the steps you need to take before trying to break into luxury real estate: 

➡️ Develop a luxury personal brand

Becoming a luxury real estate agent requires you to develop a personal brand that aligns with the lifestyle your potential clients enjoy. 

Your brand needs to be luxurious and instantly recognizable. Ensure all your branding and marketing materials are high-quality and sophisticated. 

Look at the branding efforts of successful luxury agents in your area—what do they emphasize, and what are they missing?

➡️ Get certified

Luxury real estate clients like to work with the very best people. You’ll need to prove that you have the knowledge and skills beyond your real estate license to handle high-value assets.

There are several designations and certifications available to a licensed real estate agent or broker wanting to get into luxury real estate, including:

With the LHC, not only will you be able to distinguish yourself as an expert in the luxury market, but you’ll also discover:

🧑‍🎓 How to get into luxury real estate.

🧑‍🎓 How to work with high-net-worth clients.

🧑‍🎓 Effective luxury market research techniques.

🧑‍🎓 How to fairly evaluate home pricing.

🧑‍🎓 Advanced negotiation tactics.

After finishing the course, you will also join the ranks of other luxury real estate agents with a one-year membership to the Luxury Home Council—a good networking opportunity.

➡️ Network with the people you want to work with

Getting involved in the luxury real estate industry is all about networking. Socializing with potential clients could help you generate new leads.

Discover where the elites of the luxury real estate community are and spend time there.

If you start interacting with high-net-worth individuals, then they are more likely to come to you when they need help selling their property or shopping for a new home.

➡️ Become an expert in the luxury real estate field

Your high-end clients need to trust your abilities as an estate agent. To do this, you’ll need to prove you are an expert in your field. 

You never know when a wealthy prospective buyer or seller might call, so you must always keep up with opportunities in the luxury real estate market.

This means staying up-to-date on the following:

🏠 The number of available listings in your area.

🏠 Recent sales and those that are pending or expired.

🏠 Details about similar properties for sale in the area.

🏠 Information about the neighborhood.

🏠 Any attractive amenities.

🏠 The latest building materials, interior design options, and other home design ideas.

If you don’t know enough about the area you want to market properties in, talk to the residents. You can even set up meetings with members of the homeowner’s association to find out specific details.

➡️ Learn how to deal with high-income clients

The types of clients looking to buy multi-million-dollar homes are not like those in regular real estate.

They have high expectations and different needs and are looking for more than just a home–they’re looking for a lifestyle.

➡️ Sell an experience

For high-income individuals, luxury is not only defined by the price but also by the level of service provided.

Luxury clients are likely used to receiving superior service and often expect the same from their real estate agents.

Every property and client needs a different approach. Go the extra mile to make your clients feel like they are getting a personalized experience. 

Simple things like a bottle of wine sent with an invitation to a client entertainment event will help get people’s attention. Or, you could create a 3D virtual tour showcasing the properties you recommend for them.

Open houses for the wealthy should be treated as events. They present an opportunity to create the ultimate luxury experience, network, and attract potential buyers.

Ensure you match the quality of the open house event with the quality of the home. Hosting real estate events should be well-planned and opulent.

➡️ Always be available

Luxury clients have tight schedules, and agents must demonstrate flexibility and reliability.

You may have rearranged your day to accommodate a property showing for a luxury client, only for them to cancel at the last minute. That’s the reality of dealing with luxury clients—but being flexible will help you reap big rewards.

It’s important to go above and beyond. Try to answer their phone calls and emails right away, even if it’s after hours.  

Give your clients regular status updates about how their transaction is progressing—for their peace of mind.

If you take extra care of your clients and do a great job with their listings, they may recommend you to other high-net-worth buyers and sellers.

➡️ Understand your client’s needs

High-income individuals aren’t just looking for a place to live but a location that offers them a luxury lifestyle.

Agents who get to know and understand their clients’ lifestyles are more able to help them find their dream homes.

As a luxury buyer’s agent, it is important to understand what your clients want in a home. Are they looking for good local amenities? Perhaps a beautiful location? 

What do they want the impact on their lives to be? More privacy? A better quality of life for their children? 

Consider what the local community can offer them. You need to be knowledgeable about the following:

  • Schools.
  • Country clubs.
  • Fitness clubs.
  • Golf courses.
  • Riding stables.

Another way to enter the market is to solve a problem for a luxury client. This could include:

  • Legacy planning.
  • Real estate taxes.
  • Insurance.
  • Asset appraisal.
  • Banking and lending.
  • Asset preservation.
  • Common property.
  • Prenuptial agreements.
  • Asset privacy.
  • Knowledge about easements and zoning boards that have a say in renovations and restorations.

This adds an extra level of value to your services. If you can solve particular problems that clients have, you gain their trust and business. You’ll also be more likely to get recommendations and referrals. 

➡️ Pay attention to detail

Luxury buyers are often interested in the finer details of home design. Highlight every high-end feature a property offers and how it contributes to their luxury lifestyle.

This could include luxury finishes, an indoor pool, or the cutting-edge audio system in the home theater. 

Are you selling an expensive historic home? Find out about its unique history and heritage. When were certain features installed? Has it had noteworthy occupants?

Learn the proper vocabulary as well: know a cornice from a corbel and the difference between balusters and balustrades. 

Are you looking to market properties on the water? If so, you need to know everything about boat permits and docking. 

Selling mountain retreats? You’ll need to know where the best ski lodges and fly-fishing spots are. 

How to Get Your First Sale in the Luxury Real Estate Market

Your branding emulates luxury, you’ve done your research, and you know everything there is to know about the market you want to work in. You also know what motivates high-income clients. 

Now, it’s time to get out there and start selling. Unfortunately, it’s not quite as simple as calling yourself a luxury real estate agent. 

You’ll need to take a few steps before you can earn those huge commissions.

1. Have experience in real estate

This first step may seem obvious, but too many hopeful luxury agents want to jump into the market with little experience.

It’s a tough industry. You can’t break into it until you are a successful agent. Start by doing the groundwork and becoming an experienced agent on smaller properties to make your mark. Then, target bigger sales and more affluent clients.

2. Join an agency with experience in luxury real estate

You’ll find that there’s a big learning curve when breaking into the luxury real estate market. 

The best way to learn anything quickly is to surround yourself with like-minded experts and mentors in that field. 

By joining a brokerage specializing in luxury properties, you’ll start gaining experience and making connections that can help you in the long term.

3. Find a mentor

Having a mentor is a great way to learn from someone with firsthand, real-world experience that you can put into practice.

Look at what other luxury agents are doing. Some traits and practices to look out for as you study luxury real estate agents include:

  • How they present their brand.
  • How they market themselves.
  • Their websites.
  • Their business cards.

Remember, being a part of the luxury real estate market is about networking—a good mentor should be able to introduce you to some useful contacts.

4. Start by co-listing

Breaking into any new market is tough. One way to get your first sale is to co-list a property with a luxury home broker already well-established in the area.

A smart tactic is to approach an experienced agent who is too busy to take on a luxury listing by themselves and ask to co-list with them. Offer to do most of the work for them in exchange for a share of the commission.

Even though you’ll split the commission, luxury homes sell at high prices, meaning you’ll still earn a fair amount.

The benefits of working with another agent are:

  • You can network and gain firsthand experience in selling luxury homes.
  • You can start building a portfolio of luxury properties you’ve sold.
  • You split the marketing costs with another luxury agent. Marketing luxury listings can cost much more than regular real estate.

5. Look for opportunities with expired listings and new luxury residential projects

Once you’ve made a few sales through co-listing, you’ll be looking to attempt your first solo listing. As a first-timer, there are some ideal opportunities to get your foot in the door:

Expired luxury listings

Luxury homes can take longer to sell than the average home because fewer people can afford them. Plus, many are custom-designed and have unique features, making it challenging to find the right buyer.

This means luxury listings often expire before they sell, allowing you to contact the homeowners and potentially win their business. A listing expires when the property isn’t sold by the agent in the allotted time.

But to get them to sign on with you, you’ll have to convince them that you’ll do a better job than the last agent.

As you are approaching the seller, you’ll need to prove that you’re an industry professional and the right agent for the job. 

Offering solutions, like a new angle to market and sell their home, can earn you the listing.

New luxury residential projects 

Pushing to become the representative for a new property development project is a great way to get sales opportunities in the luxury market. 

Each new development could potentially provide you with multiple high-value deals.  

The best way to connect with these developers is to keep track of the new construction projects they are working on. 

Try to find clients interested in buying into their developments and approach the developer as a buyer’s agent—this will prove to them that you can sell their houses. 

If a developer likes the work you’ve done to sell it, chances are they’ll keep doing business with you and may even ask you to become their representing agent. It’s a mutually beneficial relationship that can grow and develop over time. 

For example, Florida is seeing an explosion of such developments, so there is plenty of opportunity for estate agents looking to break into the luxury real estate market.

Staying Organized as a Luxury Real Estate Agent or Broker

Success in real estate relies on being well organized. This is even more important when dealing with multi-million-dollar transactions and clients.

That’s because being an agent or broker in the luxury property market can expose you to more risk. 

With immense capital on the line, clients are more likely to seek legal recourse for any errors or breaches of duty that they perceive may have affected the sale or purchase of a property.

That’s why you need software that will simplify the transaction process. With Paperless Pipeline’s real estate transaction management software, you can stay organized by:

🗄️ Using a single system for recording all of your transactions 

Paperless Pipeline allows you to upload documents, real estate research, contracts, notes, and other critical information. 

This means that everything needed to close the transaction exists in one place. There is no longer any risk of losing track of important information and documents.

🗄️ Using checklists and other tools to track files closely

By developing custom lists of specifications for each type of transaction, you benefit from the most effective way to ensure your files stay up-to-date and organized. This is true for the entire transaction closing process. 

🗄️ Having access to your transaction management system—anywhere, anytime

One easy way to reduce a paperwork backlog and stay organized is by using a system that allows employees to deal with paperwork anytime and anywhere. 

No matter where agents are in the field, they can conveniently upload and attach documents to files as they receive them.

Become a Luxury Real Estate Agent or Broker with Paperless Pipeline

If you follow the steps above, you’ll be selling luxury real estate in no time. But as the number of transactions you’re doing increases, there’s more risk that something could go wrong.

Paperless Pipeline is an automated transaction management software that allows you to streamline and simplify the transaction process. 

With features like intuitive custom checklists, you’ll never miss a critical due date or milestone again. This means you can close more luxury real estate deals and avoid anything falling through the cracks.

Try Paperless Pipeline with a 100% free trial today and see how simple it is to organize your luxury real estate business.