Are you thinking about getting into real estate? Luxury real estate definitely is very lucrative. An average real estate agent would earn about $45,737 per year. If you focus on luxury real estate, you could get this with just one sale. But how do you actually break into the market of luxury real estate sales?
Luxury real estate offers bigger commissions. You could sell one 5 million dollar home or 25 average priced homes. One sale versus 25 sales – that’s a lot. And even if you earn ten times more, it often doesn’t take ten times more work – if you know how to do it. This market niche is also more stable and less affected by market swings.
But if you break into this kind of market, you have to be aware that you are dealing with ultra-affluent people. So there are a few things you have to keep in mind. It’s not so easy to get in. You won’t magically get deals in this sector. Chances are – you will face some barriers.
To break into the market you need stamina and persistence. But if you can do it, you will be rewarded. You will deal with a lot of money so you want to make sure you are ready for that. How do you prepare and do all of that? Well, let’s get into details of how to break into the market of luxury real estate sales.
What Are Luxury Real Estate Sales?
What’s the difference between luxury real estate and simple real estate? Simple real estate is considered a low-ticket item. When you sell such a regular piece of real estate, you will have to focus on money. This means that your prospects likely have smaller budgets and want to find cheap deals. In this case, you’re negotiating with their wallets. That’s very thought to do because you can’t change the amount of money that is in their wallet. Even if you are a genius at selling real estate, you can’t talk them into having more money.
But luxury real estate is different. Luxury real estate is a high-ticket offer. People who buy have their budget already figured out. Money isn’t that big of an issue for them. For prospects like this, you as the seller have to focus on their emotions. They want to feel good about their decisions. And they want the whole process to be a special experience.
Negotiating on feelings is very well possible. If you know how to, you can help the prospect figure out if the decision is truly right for them. You can show them why they need what you offer. And if you find out they don’t need it, you can offer them something else. Because you focus less on price and money you also don’t have to be so attached. You can focus on the prospect and their needs.
Nobody “Needs” Luxuries
You have to be aware, objectively seen nobody “needs” luxuries. Objectively seen we don’t “need” to own a Bentley. To get from place A to B, we could use any other car. A Bentley is expensive. Still, we want one.
If you sell real estate to affluent buyers, they might not “need” it in a sense that their basic human needs would depend on it. But there still will be reasons why they want it. You as the seller – or better said closer – need to draw out those reasons. Qualify them and see if you have the best solution for them.
So really, if you want to break into the market of high-ticket real estate sales, you have to be a good closer. You need to have a deeper understanding of why somebody buys. And you have to dig deeper and understand what makes the other person tick.
Oldschool Sales Methods Don’t Work
You can’t make a high-ticket real estate sale by using sales methods that are pushy. It’s also no good to be slimy or unethical. Today’s prospects are immune against those old-school sales methods. It will only turn them off.
Affluent buyers want to feel good about the purchase. They want to make a statement and increase their status. When you push them or trick them into buying you probably won’t create a good experience for them. That’s why old-fashioned sales don’t work at all. For sales that happen over the phone, 85% of prospects said they weren’t happy with the experience.
What should you do instead? Instead, you should fully focus on your client. Understand where they are at. And see how you can be beneficial for them.
Luxury Real Estate Sales Don’t Take More Effort
Now you might be thinking that this sounds nice and all, but doesn’t it take way to much effort to sell to affluent prospects? Won’t they be hard to deal with? The truth is, low-ticket prospects are often even harder to deal with. They might pay late, they try to negotiate, they are indecisive…
But with a high-ticket buyer, you might need to build a deeper relationship. Maybe you need a few touchpoints with them until they buy. But once their decision is made, they follow through. Once you are in the sphere of high-ticket offers, the price doesn’t make such a difference anymore. Let’s assume you are closing a 1 million dollar deal and a 10 million dollar deal. You might think that that 10 million dollar deal will be much harder to get. But once you do it you’ll notice, it’s 10x more money but not 10x harder.
The same methods you used for the one million dollar deal also very well apply to the 10 million dollar deal. Smaller deals usually take more time than bigger deals. The transaction time will be longer. For bigger deals, most time is spent on the actual negotiation, but after that, it goes very very fast.
That’s why luxury real estate sales are so lucrative. Once you have it down, it doesn’t take that much effort. Actually, you’ll find it easy and very enjoyable. And you will still earn big commission checks.
Leave The Ego At The Door
Now, when you want to break into the market of luxury real estate sales, there are a few things you want to watch out for. The first thing is your ego. People often wonder – how to get the confidence to sell such huge offers?
Maybe you never handled such a big deal ever before? Maybe you don’t have much experience with wealthy people? When the opportunity for a big real estate sale comes up, you get nervous. You wonder – can I really do this?
There are two things you should do to overcome this obstacle. First, you have to check the ego and fear at the door. Don’t focus so much on yourself. Focus on the prospects and their needs. Bring value to them and make sure to create a good experience. Meet them on an eye-to-eye level.
Next, you want to approach your real estate sales with a certain attitude. Focus on the client and on confidence. The thing with confidence is that it comes from knowing what you’re doing. But what if you’ve never done this before? What if you never closed a deal before?
If that’s the case, then use Tiger Woods’ recipe for success.
Act Like It’s Already In Your Pocket
When Tiger Woods was about to lose at his first masters, he had one final putt – and he made it! With that, he earned an extra 5 million dollars. So of course, people would ask him how was he able to do that. How was he able to stay that calm? And his answer was – “I played as I already had the money in my pocket.”
So when you get into a real estate sale, approach it as if the deal was already done. We call that assumptive close. When you do that, there is no need to be nervous. The deal is already done. It’s only a question of time. Approach your first deal as if it were your second.
It’s just like in dating. On a first date, you are probably very nervous and worried about everything. On the second date, you are calm and at ease. Go to your first date as if it would be your second. Go to your first negotiation as if it would already be done.
Stay confident but don’t get arrogant.
Create An Experience
When you get into the market of luxury real estate sales, you will mostly deal with affluent prospects. They are wealthy and they want to be treated as such. This isn’t just a regular sale. It’s an experience.
Think about it, nobody likes to be sold. When a salesperson pushed and pressures you, you don’t feel good. But people still enjoy going shopping with their friends. People don’t want to be sold but they like to buy.
So you want to create an experience where they feel like they are buying in a friendly environment. Essentially, you want to make it about them. There once was this story about a news reporter. He explained that many people he interviewed made it sound like they are the greatest person in the world.
But once the reporter interviewed a special person, let’s call that person Mike. Mike was different, he made the report feel as if the reporter himself was the most interesting person on earth. What Mike did was that he created an exceptional experience for the other person.
What would it mean for you and your real estate sales if you could do that? A great way to start creating such an experience is by talking less. In fact, the prospect should do 80% of the talking during a sales conversation.
When To Close
So many people would think that the close of a real estate sale happens at the end. You nurture the clients, you show them some options, you wait for them to think about it and then you close. That’s what most people would expect. But actually, the close starts at the beginning.
You build up the close from the first time you meet the prospect. You are setting expectations for them – what the whole process will be like and what options they have. The more agenda-setting you do at the beginning, the easier it will be to get that final “yes” from the prospect. Closing is a process. During the process, you keep getting smaller agreements from them. Have them get used to saying yes to your offers.
You want to approach luxury real estate sales without being desperate. You don’t want to be attached. But at the same time, you have to be in control of the process. You gently lead the prospect until they are ready to buy.
Agenda setting also means qualifying the prospect. Not every prospect will be perfect for you. So, you want to be selective. If they can’t work with you, you can always refer them to somebody else. Being able to say no to a potential client will give you an edge. You are non-attached and your clients will appreciate that a lot.
Be The Closer You Know You Could Be
To break into the market of luxury real estate sales, you have to perform. You have to be comfortable with money, luxuries and affluent people. If you didn’t have that in your life before, it might be a bit uncomfortable.
Dan experienced the same when he visited his mentor Dan Pena at his castle for the first time. Back then Dan Lok didn’t have a lot of money. But Dan Pena was so rich. They were sitting at the table having dinner together and on the table sat a bell to ring for the waiter. At first, Dan Lok was very uncomfortable with this kind of wealth.
The good news is, you can get used to it. And you actually want to do that. Get yourself familiar with luxury. Work in the lobby of a fancy hotel. Get an abo of Robb Report or other magazines that wealthy people would read. Get an understanding of the world they are living in.
You also want to dress the part. Not just during the close, but anytime. You never know where or when you meet your next client. So you always want to show up as the best version of yourself. No matter what you are doing. Being a luxury real estate closer should be part of your identity.
How To Do Real Estate Sales Successfully
To close as many deals as possible and earn nice commissions you have to get experience under your belt. When you get more deals and experiences you will naturally trust yourself more.
Like a karate master, you refine your skill each and every day. Many of my high-ticket closers go into real estate sales. During their training they are doing roleplays in order to practice and get experience. And those who are successful keep doing a roleplay a day. They know that they need to improve every single day. So they keep doing it.
To be successful in luxury real estate, you would also want to understand your audience. Learn how they live, where they hang out and what keeps them awake at night. Then, offer a service they can actually value.It is one thing to make people believe that you are special. But it takes real skill to make others feel like they are special. When you are negotiating, make the prospect feel as they were the most interesting person on the planet. Click To Tweet
It is one thing to make people believe that you are special. But it takes real skill to make others feel like they are special. When you are negotiating, make the prospect feel as they were the most interesting person on the planet. Find out what they are about. What do they really want and how can you serve them?
Be Your Biggest Fan
To successfully break into the market of luxury real estate sales you need to be your own biggest fan. Opportunities and deals won’t magically knock on your door. You’ll need to get the word out. Chances are you need to self-promote a lot. And you have to be comfortable doing so.
We see so many closers that act as if the world was waiting for them. But the prospects won’t magically trust you. You need to show them why they should buy from you. You need an edge to stand out. Something unique that only you could do.
Know what you are good at and highlight your strengths. Being successful in real estate sales ties in with your self-awareness too.
Master The Art Of Closing
Luxury real estate sales are all about closing. To develop a deep understanding of your prospects and “pull” them instead of “pushing” them. To find out what they truly want. When you make them the center of attention, you take the pressure off of you. All you are doing is leading them to the right decision. And that’s exactly what closing is all about.
Dan Lok trained thousands of closers from all over the world, from all walks of life. They all had different reasons to learn that skill. And many of them use it now to make lucrative real estate sales.
Even if you’ve never made a sale in your life, you can still learn high-ticket closing. All you need it the willingness to put in the work and master your skill. Check out Dan Lok’s High-Ticket Closer Masterclass to find out more.