Being a Beverly Hills luxury Realtor is less about the lifestyle and more about providing a valuable service to clients in need of professional representation. If you want to become a luxury Realtor, here’s what to expect.
The Rise to Luxury Real Estate
A luxury Realtor specializes in luxury and ultra-luxury properties. These homes are made from rare or premium materials and feature some of the finest amenities in the market. Depending on the market and location, a luxury home typically costs $1 million or higher while ultra-luxury homes can cost hundreds of million. The average price of a home in Beverly Hills is $7 million as of April 2023.
A luxury real estate expert deals exclusively with ultra-high-net-worth individuals (UHNWIs), or clients whose assets total $30 million or higher. A Beverly Hills luxury Realtor often works with actors, musicians, professional athletes, media personalities, entrepreneurs, and politicians.
Aside from qualifications and market expertise, income level is another factor that differentiates luxury real estate experts from non-luxury agents. According to College Investor, the average real estate agent in the United States makes $45,990 per year while a luxury Realtor usually earns a six-figure income.
So how does a real estate agent become a luxury Realtor? Fortunately, you don’t need to come from a wealthy family to be able to sell luxury properties. In addition to obtaining a real estate license and gaining experience, working with a luxury brokerage will help you gain access to high-income clients.
The Daily Grind
Being a luxury Realtor comes with a unique set of challenges and opportunities. The best Realtors in their field are passionate, authentic, creative, and consistent. They are committed to delivering a high level of service to which luxury buyers are accustomed. Their daily tasks and duties typically include:
Communicating with high-profile clients
UHNWIs expect fast and proactive communication from their Realtor. A typical day for a Realtor involves returning calls and messages to provide updates or address any concerns and questions that the client may have about the process. They may also attend virtual or in-person meetings depending on the needs of the client.
In addition to clients, a luxury Realtor also communicates with other parties and professionals involved in the transaction. These may include buyers, sellers, agents, marketers, inspectors, or lenders. The Realtor may also communicate with escrow companies, title companies, tax assessors, and other local agencies relevant to the transaction.
Showcasing luxury properties
To attract qualified buyers, a luxury Realtor promotes listings and develops marketing campaigns. Since many UHNWIs are concerned about their privacy, a luxury Realtor has to
maintain confidentiality while getting their listing in front of the right people. Instead of organizing an open house, it’s customary for luxury Realtors to arrange private viewing appointments with pre-qualified buyers.
It’s also common practice to sell luxury homes in off-market transactions. This means that some luxury homes for sale don’t even hit the market. They are typically presented to potential buyers within the Realtor’s or the client’s private network of contacts. These deals are often negotiated in private and are only featured in the news long after the sale has been finalized.
Navigating complex negotiations and transactions
Unlike the average buyer who has a traditional source of income and takes out a mortgage on a home, UHNWIs typically have non-traditional sources of income, such as businesses and investments, which can make financial documentation a bit more complex and challenging. Furthermore, when purchasing a luxury home, UHNWIs either make cash offers or apply for jumbo loans, which exceed conventional loan limits and have more stringent requirements. A luxury Realtor must have a good understanding of various sources and arrangements for financing a luxury real estate purchase.
They must also protect their client’s best interests by negotiating the most favorable terms and conditions possible. This can be quite difficult as the other party are usually UHNWIs themselves – these individuals are highly skilled in business and can be quite assertive during negotiations. A luxury Realtor must utilize the appropriate negotiation strategies while maintaining objectivity.
Managing Luxury Listings
When managing luxury listings, a Realtor must make sure that all active listings contain accurate and up-to-date information. A typical work day may include updating their database of listings to reflect any changes in the status of a property or transaction. These changes may include price cuts and changing an active listing to sold or pending status.
There are many ways for Realtors to curate luxury listings. In addition to working with a luxury brokerage, which has a roster of agents representing both buyers and sellers, a Realtor can reach out to homeowners and potentially win their listing. Luxury Realtors may attend events at country clubs, art galleries, and upscale gyms to meet affluent homeowners who may want to sell.
Staging and presenting properties
Luxury home staging is the process of preparing a home for sale or rent. The goal is to make the home more inviting and visually appealing to luxury clients. This usually involves the selection of high-quality furniture, art, and decor to create an aspirational space. To accomplish this, the Realtor must have an eye for detail and a working knowledge of design and aesthetics.
Leveraging technology for improved marketing
There are many technologies available to Realtors who want to enhance their listings and marketing campaigns. These include virtual (VR) and augmented reality (AR), which create immersive experiences for potential buyers. This lets them explore any given property with a realistic virtual layout and design. 3D floor plans and interactive property tours are also popular. These help potential buyers gain a better understanding of the flow, layout, and configuration of a property they’re interested in.