Despite the economic decline from the pandemic, industry experts were surprised that many are still interested in living a life of luxury. In fact, the luxury real estate market rose to staggering rates in 2020. According to the LA Times, luxury real estate numbers climbed by more than 60% on the west coast alone. This considerable increase in luxury properties leads to more real estate agents working with luxury clients looking for that perfect home.
Some agents may be nervous about this sudden uptick in wealthy clients. Working with clients of this caliber may come with its own set of challenges. But upscale or not, there are quite a few myths about working with luxury clients you should know about, and we’re here to dispel them one by one.
They Don’t Care About Money
We have all seen reality TV. Celebrity clients spending millions of dollars in the blink of an eye and not caring about how much a property costs, even if it’s over-priced. Well, despite their wealthy status, this myth is far from true.
Most millionaires are self-made and have worked very hard to gain their affluent status. They don’t earn their money by spending it as fast as they make it. They want a good deal as much as the next person, and because they are affluent, they are more likely to walk away if the price isn’t what it should be.
These clients are likely to be intelligent business entrepreneurs and understand the ins and outs of a business deal, if not the specifics of real estate itself. They will likely know if a property is overpriced or if someone is trying to get over on them and won’t take it kindly.
Your luxury clients are discerning individuals who don’t necessarily think the most expensive home is the best option. They are looking for something specific and are willing to pay what it’s worth, but nothing more. The next time you represent a luxury client, know that they care about the cost of a home and expect you consider their wishes.
They Are Difficult to Work With
The biggest myth about working with luxury clients is the idea that every wealthy client is impossible to deal with. Reality TV shows create a view that luxury clients are like toddlers who throw tantrums every time something doesn’t go their way. It’s simply untrue!
Many realtors find it easier to work with clients who have nearly unlimited funds. They aren’t held back by minor monetary concerns, eliminating a lot of stress that you have with your regular clients. Affluent clients typically have a deep understanding of what they want specifically, and they have the means to acquire it, so they don’t hold back.
They make quick decisions and are typically ready to pull the trigger when they find what they want. In addition to their decisive mindset, your luxury clients are unique in another way: most of their transactions are in cash. Cash transactions eliminate the paperwork and headaches that come with mortgages and getting customers approved for bank loans. Adjusting the price by a few thousand dollars can be a difficult change for your regular clients, but for your luxury clients, it’s as easy as asking them.
These clients are business-minded and used to being under pressure, and some even thrive better under pressure. So, assuming your luxury clients will batter you with inappropriate comments and difficulty out of the gate will only introduce unneeded stress to your business relationship.
They Have All the Time in The World
We’ve all seen the shows and movies that highlight millionaires jetting off to Aruba at the drop of a hat, partying into the wee hours of the evening, and sleeping until noon. These television shows would lead you to believe that your wealthy clients have unlimited time to spare and don’t care how long things take or when you’re available. This assumption will lead to a disastrous interaction with your client and likely the loss of a sale.
You will find that some of your luxury clients own several businesses and corporations and have schedules that would leave your head spinning. They need things to run smoothly and efficiently and expect you to make that happen.
However, time management is one area where wealthy clients can be more demanding than your typical clients. They may expect you to be on-call for them and available at a moment’s notice. When handling the sale of million-dollar homes, this is a fair request. Time means money, and their time is precious.
You’ll need to work around their schedule as much as possible and likely around the seller’s busy schedule as well to show properties. Attempt to be as accommodating as possible because this will be appreciated and earn you their trust and respect. Who knows, your accommodations could lead to more deals from them sharing their positive experience.
You Have to Be Wealthy to Sell to Them
If you want to sell a million-dollar home, you need to appear to be a millionaire yourself. Not necessarily. A professional appearance does matter in business, but this goes for all clients, regardless of their monetary status. Your appearance should be well-groomed and your clothes professional, but this doesn’t mean you have to drop thousands on an Armani suit to sell to higher-end clients. The opposite may be true.
More often than not, with truly wealthy clients, you may not be dealing directly with them, but instead their assistants, accountants, and concierges. These are ordinary people just like yourself who interact with the same client and are unlikely to be wealthy themselves. While you may also deal with the client directly, the assumption that you need to be financially secure yourself is off base.
You don’t need to run out and purchase a Ferrari to appear wealthy to impress your luxury clients. You need only be professional and excellent at your job. Ultimately, clients want someone with a head for business and excellent knowledge of real estate. Your real estate expertise is, after all, why they hired you.
They Are Different Than Your Regular Clients
The majority of real estate agents will tell you that millionaire and even billionaire clients are pretty much the same as their regular clients. Yes, they have much more money to burn, but they are still ordinary people. They still sleep, eat, and put on pants in the morning, and they expect to be treated like everyone else. Albeit maybe a little bit more professionally.
Representing affluent clients doesn’t need to be a frightening or stressful experience. It’s a business transaction like any other. If you approach your luxury clients with the same professionalism and business-savvy you do of every other sale, you’ll find more potential buyers asking for your services in no time.
Call Motivated Sellers
Are you looking to attract more affluent leads to your real estate business? Without a solid strategy for generating new qualified leads, this can be a challenging goal. However, Call Motivated Sellers can help! Our team of cold calling experts will vet your contacts and leads list and help you convert them from qualified leads to future sales.
Are you interested in working together or learning more about our services? Contact our team today, and let’s get started!
Marketing provided by Joseph Studios.