If I had a dollar for every time a brand-new real estate agent came to me over the years for lead generation with the angle “I only want to sell luxury real estate” – I’d have a ton of dollars, maybe I might even own one of these fancy properties myself.
I always visualised having a big red chair like British TV chat host Graham Norton, where if the story is boring (or in this case ludicrous) he just pulls a lever and ejects them. Or a wet fish I could hit them with. Either would do.
It’s often said that selling a €5 villa is easier than a €100k apartment, and the commission x20 fold. What they omit to tell you is that finding the buyers consistently (or maybe more relevant, having them find you) is x100,000 harder. The air is very thin in the dizzy heights of the wealthy.
Paying some dude in India €10099 a month to get you to “the top of Google” – guaranteed 😉 – or giving me a couple of grand “to have a go” on Google Ads simply isn’t going to cut it. Save yourself the expense: unless you have a clear idea on how to reach the super-rich, don’t do it. It’s painful to watch.
But who can blame them? It’s no surprise every man and his dog wants to launch their real estate business positioned in the luxury sector. In principle, it makes sense, as all you need these days is a €500 WordPress site and a monthly subscription to one of the many MLS systems available. You share the commission with the listing agents but it only costs you if you sell it, and then, you can tie a direct collaboration agreement with dozens of developers to punt their luxury off-plan projects for full commission. Depending on where you are in Spain that will likely be 4-10% these days.
As a business plan, it makes sense, especially as it means the occasional sale more than covers your financial needs… and the rest of the time? Well, you enjoy life in Spain. It’s why we live here right?
But everything I’ve witnesses the luxury property buyer moves in different circles, buys differently. You could even say you don’t sell to a HNWI he or she buys from you. Yes, you can bag the occasional big spender by moving in the mid-market, but you can’t put the kettle on for it unless you have the on know-how to reach them consistently.
What are the secrets to being able to succeed in this sector? Not sure, but I am sure it’s not enough to have a snazzy website and a subscription to your local MLS.
Yesterday US real estate coach Tom Ferry interviewed Mauricio Umansky, the CEO of hugely successful US real estate brokerage “The Agency”. Mauricio holds the distinction of selling the most homes in the US priced above $20M+, so you’re going to want to hear what he has to say… The main real estate part starts approx 17 minutes in.
*You might have also seen him on the US reality TV show The Real Housewives of Beverly Hills (he’s married to Kyle).
(TIP: If you’re short of time… the real estate bit starts at about 17 minutes in…)