Let’s cut to the chase. The method to earn multi-million dollar ads is simple. You have to:
- Have an impeccable and recognizable presentation.
- Possess unparalleled knowledge of your market.
- Cultivate a strong and engaged network.
Don’t get me wrong, this is a simple list, but the work and the building process is not easy. If that were the case, everyone would be a real estate agent and everyone would be making millions doing it.
Let’s prepare the ground
The luxury real estate market is not limitless, but the opportunity is always there and it is huge. The inventory of luxury single-family homes in North America was nearly 40,000, many of which are likely concentrated in luxury markets.
North America has over 240,575 high net worth individuals (individuals with investable assets over $30 million), and in 2020, 27% of them purchased new homes while 29% planned to buy in 2021, according to data compiled by Statista.
At what price?
In 2022, luxury homes stayed on the market for an average of 11 days, compared to 38 days a year earlier in 2021 for all of North America. That’s a difference of over 100%, it’s actually 110,204% to be exact.
The very wealthy are less affected by economic changes like a recession, so there doesn’t seem to be a downturn in sight.
How to Break into Luxury (It’s What You’ve Been Waiting For)
Show your worth
It all ends and begins with your Unique Selling Proposition (USP). This is how you differentiate yourself in any market.
Just start and build from there.
Define your long and short term goals, your ideal buyer/seller and honestly assess what your real estate business has to offer.
What do you bring to the table that other real estate agents don’t? A deep understanding of the market, decades of experience, a highly motivated network or a charming personality?
From there, you can put it into words. Keep it short and sweet. You should be able to explain in 2-3 sentences what your USP is to anyone. Internalize it and make it the focal point of your brand.
Create an impeccable and recognizable presentation
Customers eat with their eyes first.
This adage from the culinary field applies to a wide range of disciplines, including real estate. 82% of sellers will assign a listing to the first agent they contact and 73% of buyers only interview one agent before deciding to buy a home with them. So, as a seller or buyer’s agent of a multi-million dollar property, you need to create a footprint moment. Like a duckling that hatches and develops a bond with the first thing it sees, agents must position themselves and their digital brand to bring home that “footprint moment.”
The 3 elements of presentation
1 – Visual
Your website and digital presence come first. 95% of buyers have used online tools in their home hunting process, according to a report by the National Association of Realtors.
You need to stop potential customers in their tracks because if they leave your site without imprinting it in their memory, you’ve already lost.
To win, your online brand (website, social media, and directory listings) must be cohesive, concise, and compelling. Appearance should communicate your expertise and know-how within your market and set you apart from your peers (in a good way).
Use sleek, professional color palettes, fonts, and a logo based on the USP you want to communicate.
Pro tip: Creating professional, forward-thinking presentations and unique property websites can go a long way in cementing you with sellers and buyers..
2 – Verbal
Develop a written style. Make it recognizable. Use it across all your communication channels to create a lasting impression.
You can insert trigger words that help define your voice. Repeating a word or phrase and sprinkling it creatively throughout your marketing and branding can create an association that brings customers back to you.
Make your words impactful by using unexpected language, strong words, and emotional appeals.
Most importantly, always write for your clients. It’s not a vain project, it’s a tool to help people find and solicit your service offer.
Be meticulous about maintaining standards for these elements, as they all communicate your value to customers in one way or another.
people buy [into] feelings.
Identify the emotional queues you want your USP, visual identity, and voice to elicit in your audience.
These are the emotions that drive people to make purchasing decisions and the same emotions that will bring you new customers:
Greed – “If I do X, I will receive Y.”
Fear – “If I don’t do X now, I will miss Y.”
Envy – “If I don’t get X now, they will get X.”
Pride – “I’m smart to have X when I did.”
Shame – “I’d be stupid not to have X now.”
These apply to any transaction.
Know your market inside out
There isn’t much more to this one. It really is as simple as it sounds. Gather and maintain as much information as possible about your market.
You should be able to recite information about your ad(s) down to the smallest detail, not just the highlight reel that you think buyers will be interested in.
Go deeper by learning the history of your listing, your market, and your general location. Putting a property in its historical context can help complete the picture for buyers with deep color.
Here are some suggestions for winning the information game:
- Survey the neighborhood. Get the lay of the land from locals and make connections.
- Visit a local historical society.
- Map landmarks in the neighborhood and read online reviews (with a grain of salt).
- Learn about the area in the local library.
- Perform a Comparative Market Analysis (CMA).
Get creative and imagine going where other agents aren’t willing to, within reason.
Building a network: it’s about knowing who you know
Get to know people.
“I’ve come to believe that connection is one of the most important professional – and life – skill sets you’ll ever learn. Why? Because, frankly, people do business with people they know and like.
– Keith Ferrazzi, author of Never Eat Alone and former CMO of Deloitte
It’s a simple maxim for a simple approach to business and it works. Build and manage your relationships expertly and it will pay dividends, or in this case, commissions.
82% of real estate transactions can be attributed to referrals, an absolutely staggering figure. Especially when you learn that 65% of agents don’t do business with open houses.
It’s as simple as:
- Use a customer relationship management (CRM) tool to track your contacts and interactions.
- Record important dates like birthdays, milestones, and anniversaries to capitalize on moments to reach your network.
- Block out time on your calendar for coffee or lunch with agents or buyers you want to connect with.
- Communicate on social media without pretending to sell or buy. The relationship first, then the transaction.
I’ve given you the tools to land multi-million dollar properties, but it’s up to you to put them to work. To drive the point home, it’s simple, but it won’t be easy. It takes time, experience and effort to break into this level of real estate.
If you have what it takes, Luxury Presence can help you get there. Click here to make an appointment with one of our experts to find out how.