How to break into the luxury real estate market

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By Michael LaFido

As a real estate agent, it is difficult to break into luxury home sales. Many agents believe they have to be licensed for X number of years before they can sell luxury real estate, but that is false. Many agents believe they have to be affiliated with a certain brokerage to be able to consistently sell luxury homes. That, too, is false. Many agents believe they have to drive a luxurious car or live in a high-end home to sell luxury homes. Those ideas are also untrue.

What IS true is that luxury sellers rarely allow agents who are inexperienced in luxury home sales the opportunity to interview, let alone work with them, until you can show them that you have successfully sold similarly priced homes in that area. One of the most important truths to getting hired is that you have to build sellers’ trust and be likable. As psychologist Daniel Kahneman, a Nobel Prize winner, discovered, people would rather do business with a person they like and trust than with someone they don’t, even if the likable person is offering a lower-quality product or service at a higher price. The bottom line is, be likable.

If you’re trying to “break into selling luxury homes,” my advice is to attend other agents’ luxury broker open houses in your market. You will gain an understanding of the styles, materials and construction involved, and you will gain confidence and more knowledge. Perhaps the listing agent may even grant you permission to “shoot a live video” from the property. You might also consider hosting an open house at another agent’s higher price point listing from your office.

I believe that when an agent is more knowledgeable, they will be more confident. When you are more confident, you will be more likely to step out of your comfort zone and know that you can work with high-end or luxury buyers and sellers. Once you make the first couple of sales, it’s easier to sustain business with those upper-price-point clients.

So, what exactly is a luxury home, Michael, you ask? Some people classify it by the style of the house, or perhaps by its finishes, or by the product brands in the home. So, how do we define a luxury home from a price standpoint? I know different brokerages and different real estate firms define luxury real estate differently. Many define a “luxury home” as a property that is priced at $1,000,000 or higher.  For the purposes of this article, we’re going to define a luxury home as a home that is listed for sale at at least three times the average sales price for that market. (There are four primary price points in most markets: starter-/entry-level, average, high-end and luxury pricing. I define high-end homes as homes that are two times the average sales price for that given area.)

Luxury is relative to that specific market. Most markets have luxury homes based on our definition; it’s all relative, however, because when people think of luxury, they often think of McMansions or estate homes, and that’s not always the case. To take action, you need to develop graphs and other visuals that can articulate the data for luxury and high-end real estate for/in your marketplace: Are you in a buyer’s market or a seller’s market? High-end and luxury homes start at what price point for your market? You need to know this information. You also need to align yourself with luxury strategic partners and become a student of local and global luxury trends. Almost every ambitious agent in this business wants to break into the luxury market, so you need to set yourself apart by proving you have excellent market knowledge and proven plans to successfully help homeowners sell their homes. Now go prove to the luxury sellers in your market that you’ve got what it takes!

I love sharing our content to our e-mail database, as well as sharing them on other platforms like Facebook, LinkedIn, Twitter, Instagram, and, of course, YouTube. I would love to hear from you. Let’s connect over Instagram @LuxuryListingSpecialist, and let me know how we can help!

Michael LaFido is the founder of the LUXE Designation (LuxuryListingSpecialist.com), founder of the Luxury Listing Specialist Podcast and author of the book “Luxury Listing Specialist.”

Hiring a virtual assistant doesn’t have to break the bank

Anne Ewasko Leave a comment

The market has been fast and furious, and in order to stay productive, the need for efficient time management is at an all-time high. Attempting to do it all just doesn’t work, and you can easily burn out if you don’t find ways to delegate some of the workload. Hand off the mundane tasks so that you have more time to focus on your clients, build your business and have some personal time.

Time to go virtual

Consider hiring virtual assistance — and do not fear! Our world has become so accustomed to working remotely, and technology has kept up with it. This isn’t just for mega-agents or teams. If you are new or only completing a couple of transactions per month, there are affordable plans that will suit your needs. The virtual real estate assistants come already trained and ready to work for you. Going virtual could be perfect for the agents who are too busy to keep up but not busy enough to afford traditional assistants.

Cons for the traditional way

Traditional assistants can be hard to find — especially in this employee drought. They are expensive and may require another desk at an office that we really don’t spend much time at. Training can take valuable time away from you cultivating your business just to get them up to speed. Worse yet is when you have invested that time to get them to a certain level only to find out that the relationship isn’t going to work out. With a virtual assistant, you can switch out easily if things aren’t gelling well without wasting valuable time.

What do virtual assistants do?

Everything a traditional assistant does, just not face to face. Whether it is simple database upkeep, scheduling, prospecting, marketing or full-on transaction management, these companies offer virtual assistants who can do it all — some include social media management and even video editing! Most are already trained in e-signature software such as Dotloop, DocuSign and several CRM platforms, but they will work for you and integrate into whatever you are currently using. Think of it as Uber for your real estate needs, from full-on to a la carte.

Know what your needs are

If you are looking to go big for a “right hand” that can also double as your backbone as a part- or full-time executive assistant, then you can look at MyOutDesk, Virtudesk, Virtual VA Solutions, Zirtual, Ossisto or ShoreAgents, to name a few. Some offer by-the-hour or monthly plans, whether it’s part-time or full-time, and the rates range from $8.60 an hour and up to $1,800-plus per month for full-time. Some, but not all, source their talent from the Philippines, but they work in your time zone and have trustworthy skills and extensive training in our U.S. software systems.

Go basic to get started

If you are on your own or have a small team and just need some transaction management assistance, then Transactly may be the way to go. Why? Because you only pay when the deal closes — they don’t earn it until you do! And their fee is only $125 to $350 per transaction. If you do not currently have transaction management software in place, they can provide theirs to you free of charge. It can be customized to suit your workflow and comes with beautiful email templates that can be integrated with your brand as you keep your clients up to date throughout the process. But if you already have a system in place, they will adapt to your customized workflow.

Transactly claims that they can automate roughly 91% of the transaction tasks, and you can designate what you want them to do and what you will do to get the transaction to a smooth close. They are U.S.-based and bilingual and operate in all 50 states, plus Australia and Canada. It’s important to note that they are not virtual assistants at your beck and call. They are purely transaction coordinators and work 9 a.m. to 5 p.m. five days a week but promise a 24-hour turnaround time on all communications. You are assigned a primary coordinator, so you will be dealing with the same person for each transaction, but they will also be managing other clients. They also offer listing management services as a separate item.

Balancing work-life while growing your business

Be open-minded and take advantage of the opportunities these virtual assistant companies have to offer. Research what is right for you, and take some of the weight off your shoulders with these cost-effective virtual assistance opportunities. This will not only enhance your business and bring you a better bottom line, but, more importantly, provide you with more personal time to balance your life and avoid burnout.

Anne Ewasko is a veteran Realtor in the Chicago area and a longtime techie. Visit her at anne.luxhomechicago.com.