Being a luxury real estate agent is one of the most coveted real estate careers for many aspiring and even established agents. According to Zip Recruiter, the average annual luxury real estate agent salary is $77,029. This is almost double the average salary of a regular real estate agent!
So, What Is a Luxury Real Estate Agent?
This is someone that does not deal in typical single family homes, multi family homes, apartments or condos. Instead, they deal in the luxury market, where investment properties and homes are valued in millions. Such agents might also be involved in selling real estate in exotic locations or overseas, and other high-value properties that the average agent cannot access. When luxury agents make one sale, they can make more in commissions than an average agent might earn all year.
Pros and Cons of Being a Luxury Real Estate Agent
- Attract luxury clients – Positioning yourself as a luxury real estate agent allows you to attract high-end real estate clients. This means you may be rubbing elbows with celebrities and the elite in your housing market.
- Unlimited income potential – Luxury real estate agents have unlimited earning potential. If you have strong business skills and are ready to work hard, then you can make a handsome profit.
- Choose your own schedule – Since you are your own boss, you can have a lot of flexibility with your scheduling. This way, you will have time to attend family events, doctor’s appointments, and school functions for your kids.
- Help people achieve their goals – Finding luxury homes can be a very frustrating process for real estate investors and homeowners. As a luxury real estate agent, you will make it easier for real estate clients to find their dream homes.
- Expert status – When you successfully sell luxury homes or investment properties, people will start seeing you as an expert in the industry.
- Limited customer base – Not many people can afford luxury properties. As a result, being a luxury real estate agent means competing for a very small customer base.
- Long working hours – In order to compete effectively in the small luxury real estate market, you will have to work very long hours. This can be very stressful and frustrating.
- Need for special certifications – Besides obtaining the regular real estate agent license, you might also have to get a specialized certification such as the Certified Luxury Home Marketing Specialist (CLHMS). This will mean incurring additional expenses.
Related: The Pros and Cons of Being a Real Estate Agent
How to Become a Luxury Real Estate Agent
If you find the advantages too appealing to turn away from this career path, then you’ll want to know how to become a luxury real estate agent. To be a successful luxury real estate agent, there are several things you need to do in order to win the trust of your customers and to start making money as a real estate agent:
1. Consider buying luxury real estate leads
Becoming a luxury real estate agent will not happen overnight. You must learn how to market yourself through your own website, social media, and email marketing. In addition, you should also find a way of generating real estate leads for your business. In the beginning, you could consider purchasing quality leads from popular real estate listing sites such as Zillow and Trulia. With time, you will be able to improve your real estate lead generation skills but a little help in the beginning may be necessary.
Related: How to Get More Real Estate Leads in 2020
2. Find a mentor
One of the best ways of learning how the high-end market works is by having a mentor. An experienced luxury real estate agent can help you learn how to market yourself, how to handle difficult real estate clients, and how to manage crisis situations. In addition, you will be able to network more effectively with other professionals in the industry.
3. Make use of the latest technology
To be successful as a luxury real estate agent, be sure to leverage the latest technology in your business. Things such as feedback software, electronic signature software, websites, and apps will make you stand out from the competition, thus attracting sellers and buyers to you. You should also consider using AI and predictive analytics to up your game in the competitive luxury real estate market. A great tool for qualifying real estate leads using artificial intelligence and machine-learning algorithms is Mashboard by Mashvisor. Check it out.
You could also consider offering virtual tours of your properties to potential buyers. Remember that the final buyer could be located in another state or country. Virtual tours also provide an opportunity to answer questions live, thus allowing buyers to make a quick decision.
Related: 10 Real Estate Technology Trends to Expect in 2020
4. Start your career at a luxury brokerage firm
Before venturing out on your own, consider working first at a luxury-focused real estate agency. Though you might be required to split your commissions with the firm, this will be a great opportunity for networking as well as building up your skillset and resume at the same time. You will learn the hottest trends of the luxury market, what high-end customers are looking for, and what the future holds for luxury real estate.
5. Follow-up effectively
Proper follow-up is a must for success as a luxury real estate agent. Stay in touch with potential sellers and buyers via phone calls and emails. Let them know that you are committed to selling their property or finding their dream home. You could even offer special discounts to make your deal sweeter. An aggressive follow-up strategy will result in higher sales and commissions.
6. Dress the part
When dealing with high-end clients, you need to present yourself as a luxury agent. Even if you are very skilled as an agent, many real estate clients will dismiss you if you don’t look the part. The first thing you need to do is brand your luxury real estate agency using classy business cards, a professional website, and top of the line advertising. In addition, be sure to invest in a wardrobe that will make you look like a success.
With hard work and commitment, anyone can break into the industry and become a luxury real estate agent. Besides earning higher commissions, being a luxury agent can help greatly boost your brand prestige and reputation. Such agents also get invitations to exclusive industry events where they rub shoulders with the movers and shakers. This end result is well worth all the effort and dedication in your real estate agent career.