One of the biggest mistakes that most Realtors make is trying to compete on price rather than value. When someone asks you to discount your commission, what that means is that you haven't demonstrated to that client that you are worth the commission you charge. This is particularly an issue in the luxury real estate market. For example, if you take a $2 million listing at 6 percent, that seller will pay $120,000 in commission.
The question is what can you do to illustrate your value. Here are some key ideas
1. First, you must have a world class marketing program. This means hiring an architectural photographer who knows how to shoot your listing to its best advantage. It also means hiring a professional videographer to make a video of the property. As part of this process, it would also be smart to have a video shot illustrating the lifestyle. This video is one of the my favorites and is one of the best illustrations on how to use video to market your listings.
2. International marketing campaign
If you're not using Immobel.com to translate your listings into 13 different languages, it's important that you add this to your marketing. Many Multiple Listing Services already provide this as part of their value proposition. Immobel.com also has a new platform called Real Buzz which allows users to have visitors outside the U.S. see their listings in their native language. You can also chat in real time with someone in Japanese, Portuguese, or any of the other 11 languages that they support on Facebook. (The link shows you what this looks like for members of the Sarasota Association of Realtors.)
3. Concierge Services
Many luxury clients want a turnkey experience. In other words, they write the check, you take care of everything else. Part of this process is knowing where the best mechanic is for their luxury cars, where to get their pets groomed, as well as where the best food is in town.
4. Make their showings unique
While you may have a beautifully staged house, you can take it to the next level by making your showings special. Discover what type of music the buyers like and have that playing as they walk through the property. Purchase some high quality chocolate truffles and if they buyers drink, serve it with a small glass of a great cabernet or champagne.
5. Discover what they collect
Many agents don't realize that a lot of wealthy people are into collecting. When you begin working with someone, discover what they collect. If it's cars, you're going to need a house with a lot of garages. If it's art, they will probably want a house that is extremely secure as well as one with lots of space to display their collection.
6. Make sure you have the best professionals working for you
It's extremely important if you're going to earn that big commission, that every touch point in the transaction process is top notch, whether it's the termite inspector, the plumber, or anyone else. Be vigilant about maintaining the quality.
7. Up-to-date technology
If you're going to work the luxury market, you need to have a smart phone, a tablet computer/iPad, as well as the most up-to-date apps including transaction tracking, online marketing apps, Evernote, digital signatures. In fact, you should probably be paperless, especially if your target market is a younger demographic.
Posted by Bernice Ross
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