Regardless of your level of experience, there are some very specific "rules of the road" when it comes to working with luxury real estate clients. If you currently serve or want to move into this niche, here are some important points that can make or break your business.
1. Luxury clients demand privacy
The quickest way to kill your luxury real estate business is to mention details of who you are working with, what they paid for a property, or anything else about them. In fact, the luxury code is so high that you shouldn't even discuss finances or other details with your client's spouse (usually the wife.) This taboo cuts across almost every society--even in the U.S.) While some American couples are comfortable sharing with each other, don't ever assume that the information is open. Ask whoever is handling the finances (usually the business manager, attorney, or finance person) if discussing financial details with the person's spouse is allowed or not allowed. You have to be completely private about your transactions or run the risk of losing future business.
2. Walk the talk
Luxury clients want a luxury agent. This means someone who understands their lifestyle and what matters to them. You have to know where the best place is to get their dogs groomed, who has the best wine list in town, where to locate the best nanny service, and a host of other lifestyle issues. You must also present yourself in a way that says that you're at home with their lifestyle. This means that the way you present yourself, including your speech and dress, must be congruent with representing the best.
3. Make introductions, not referrals
When you work with a luxury client, you will be making referrals to stylists, mortgage professionals, title officers, inspectors, contractors, etc. Make sure that the people you introduce to your luxury clients provide the same high levels of service that you do. Again, privacy is critical on both your side and on those to whom you introduce to your clients. Remember, never do a "referral." Instead, say, "I would like to introduce you to the most capable title officer in our area."
4. Be prepared to assist with property management
Many luxury clients have multiple homes. This means that they are not available to care for their property. If they don't have staff on hand all year long, then it's important that you introduce them to a good property management firm who can handle the property in their absence. If you have multiple clients who fall into this category, you may want to hire a property manager for your luxury team. This way, you can control the quality of the service and not risk having these clients obtain these services from a competing agent.
5. Up-to-date technology
Many luxury clients will have every known luxury gadget on the market. If you want to compete, you need to be familiar with what's out there. Two excellent sources to keep ahead of the game are Gizmodo.com and and Mashable.com. Also, don't expect to be taken seriously by younger clients if you're still running an old operating system and hanging on to that tired flip phone.
6. Customize, customize, customize
If you are representing a luxury listing, hire the best quality photographer and videographer that you can afford. Have beautiful glossies of the home printed up and give them to your clients in a beautiful box or album. Make sure that your marketing plan is completely customized for their home and to a specific type of luxury buyer best suited to purchase their home. Quality counts.
7. Speed of communication
Your luxury clients will not be at your beck and call, but you can count on them expecting to reach you when they want you. This means responding within minutes if they send you a text message. While this is not always practical, you can circumvent some issues by setting up specific times to communicate with them or by sending them updates once or twice a day.
Ultimately, all clients deserve this level of service. If you want to serve the luxury market, a key point to keep in mind, you never know when that first time buyer may have a wealthy parent or grandparent who could need your services in the future.
Posted by Bernice Ross.
Need help with your negotiation skills? Check out RealEstateCoachRadio.com this week and hear Michael Krisa's five segment interview with Tim Burrell on the subject of negotiation plus an update on the latest economic trends from NAR.