One of the fastest ways to get results in luxury real estate is to go after the low-hanging fruit. Now, I don’t mean going after cheaper houses, what I want to discuss is the ability to be able to get the quick and easy sales, that no one else is looking for.
Typically, the easiest sales to get are working with your immediate family and friends, or word-of-mouth referrals. But sometimes, those people aren’t fully ready to move, or they aren’t really serious about working with you right away.
Keeping a full pipeline of prospects is always a great idea, however, when you need sales fast there are better options.
The two scenarios which work the best are: FSBO and Expireds.
These are the magic pill for getting sales now, and having clients which are on board with ramping up the speed, and moving through the sales process quickly.
Face it, if you have an Expired House on the market, you want it gone...like yesterday.
It’s worse than a gallon of spoiled milk, because instead of pouring it out and wasting three bucks, you could be losing hundreds of thousands of dollars or more, and the value keeps depreciating due to the number of Days on Market.
Expired Real Estate Listings in the high-end market need to move fast, and therefore, their owners appreciate your diligence in working to help them get rid of them ASAP.
Since the home didn’t sell the owner will be frustrated, emotionally drained, and ready to listen to some good advice.
Sometimes, they can be annoyed with agents because the home didn’t sell the first time around.
Be Positive and Never Criticize Another Agent
This experience needs to be handled delicately.
Make sure that you never speak negatively about the previous agent, because that will make you look very unprofessional.
They probably are getting tons of phone calls from low-end realtors who aren’t able to help them, but are looking to snag their business.
I’d advise you to try warming them up by “selling them on the experience” before convincing them to work with you.
What I mean by that is that you have to guide them through what it means to live the lifestyle that they want to live.
Help them understand what it will be like to work with you, and remind them of how great it will feel when their home is sold and off the books.
That “deep breath sigh of relief” is what you need to sell them on as their new real estate agent.
The potential of knowing that all their needs are met, is a strong psychological plus, which will draw them to work with you.
FSBOs Are a Great Source of Leads
FSBO’s get a bad reputation because they are usually trying to save commission.
Typically, agents feel like they can be more eager to haggle, or be stingy on what they’re willing to pay you.
Still, these are great clients to work with, if you are good enough to convince them that you are worth their time (and money).
When you are able to show that you are evidently worth the higher fee, FSBO’s can be a logical choice to work with. They are usually proactive and are looking to move a bit quicker. They don’t want to be weighed down with heavy jargon and technical terms, they just want to get straight to the point–which can be advantageous for agents looking to make a quick sale.
So How do you Sell FSBO’s and Expired Listings in the Luxury Market?
Believe it or not, my very first sale was a FSBO. I literally door knocked it and was able to get a great commission out of the deal.
However, I also had a really strong mentor who taught me how to position and brand myself, which helped me quite a bit!
Prospecting in the luxury market for FSBO’s and expired listings works at a high level.
Think about it, luxury clients are usually CEO’s, doctors, actors, lawyers, or other highly successful and motivated people.
They are looking to get to the bottom of things quickly, and only want to work with the best.
If you are able to get a meeting with these busy working professionals, chances are you are in the running to get the sale. They wouldn’t waste your time otherwise.
So how can you ensure that you are the agent that gets to work with these luxury clients who are motivated to move?
Follow the suggestions below and don’t miss out on another FSBO or Expired Listing ever again!
In order to work with someone who is a luxury client, you have to show initiative. If you don’t, your clients won’t get the sense that you are willing to hustle to get their home sold.
Pick up the phone.
It’s so easy to shoot a casual email or text–and I recommend trying multiple means of reaching your clients.
However, in this case you really need to secure some phone time with your client.
If they are busy or can’t talk then, ask to meet them personally face-to-face for a brief ten or fifteen-minute meeting.
I’ve signed deals in the backs of taxis with clients on their way to LAX, or at busy coffee shops where I bought my client their caramel macchiato with extra pumps of caramel.
Finding time for in-person meetings is the way to go in luxury. Remember, you aren’t bothering them, you’re helping them!
Luxury Clients Want Special Treatment
Think about it: these clients are used to getting most of what they want in life–they are persuasive, usually work in powerful professions, and they usually have high net-worths. So show them that you value their business and are willing to get them exactly what they ask for.
By driving to them, and taking meticulous notes, you can reiterate their exact needs back to them at the end of your meeting to show that you are paying serious attention to their best interest.
Have Some Experience
If you don’t have much experience in the luxury world, that’s okay. Start off by doing co-listings with another more seasoned agent. Do a few of those, which still looks good to potential clients, and you’ll build up the credibility to be able to close listings.
Show potential clients that you are hungry and eager for the work and that you are willing to work ten times as hard as an agent who is comfortable and complacent in their luxury status.
Have a Good Website
I can’t stress this one enough, you really need to have a great luxury website for your clients to browse before they meet you.
If you call them up cold, chances are they will let their phone go to voicemail and then look up your website.
Even after you meet with them, if they aren’t ready to commit–they will probably check out your digital presence before they agree to say yes.
This is one of the most important factors that you can’t overlook when working in luxury.
It may be okay to have a DIY website if you are selling in the low-end market, but the high-end market is unforgiving.
Be Familiar With FB Ads
The worst time to introduce yourself to a potential client is the first time they meet you.
Wait…Josh how does that work?
My clients have all seen me on Bravo long before they ever met me. I close deals much faster when clients are familiar with my work and have seen my face a few times.
But Josh…I don’t have a tv show!
You can use positioning as a major factor to make you the go-to-agent in your market!
All you need is a Facebook account and just a few dollars per day.
You can use Facebook ads in the area to create awareness and familiarity so that the local community becomes familiar with you.
Once you go on the appointment you show them how you’re more than just a regular agent. In reality, you are a savvy marketing agent and will get their home more exposure. This is clear because you are proactive, you have a better website, you do facebook ads, and you know how to speak the marketing language. All of these are huge plusses to working with you, that luxury clients will appreciate!
Leverage Prospecting Tools
Another thing that I would encourage you to take advantage of is the power of the Internet.
There are some really great resources out there such as REDX which is a subscription service that allows you to get preference over other agents on updated FSBO’s or Expireds. This is a great strategy to utilize because it’s automatic. That means that you can virtually automate the process of finding leads, which gives you more time to actually communicate with your potential prospects.
This is also a really helpful tactic for getting them to book an appointment.
Hopefully this post has convinced you to go out and start pounding the pavement looking for luxury FSBOs and Expireds. I know that this was one of the greatest strengths of my early career and it catapulted me into a lot of success.
If you want to experience something similar, I would suggest starting by building your online presence, and then looking to gain some credibility through co-listing luxury properties.
Once you have credibility, or if you are already a seasoned luxury agent, I suggest incorporating a tool such as Redx to make your searches for prospects easier. Then, be diligent and persistent in order to get the listings.
Don’t forget to come up with your own creative objection handlers. Those can really help you in a pinch.
And lastly, spend a lot of time on your marketing presentation, and showcasing your strengths through the use of technology such as Facebook ads, or other marketing tools that can impress your soon-to-be clients.
Just by showing up and being professional with a marketing presentation and examples in your hand, you are going to be better than 80% of the competition!
So stop reading this blog post, go prepare your marketing presentation and then make sure you head over to RedX and get started.
There’s probably a new listing you can close in the next 7 days if you hurry!
5 KEY TAKEAWAYS
- FSBOS and EXPIREDS are the fastest ways to get luxury clients.
- Expireds may be sensitive or upset, so don’t bad mouth the last agent.
- FSBOs may want to haggle–use objection handlers.
- Being a luxury agent means looking like one–be proactive, have a great website, learn the luxury mindset, leverage FB ads for visibility, and always prepare a marketing presentation.
- Leverage listing tools such as REDX.com and don’t be afraid to put yourself out there to get new prospects in the luxury market!