Resorts
HOW TO BRAND YOURSELF AS A LUXURY/RESORT REAL ESTATE BROKER
By George R. Harvey, Jr.
Here‘s my outline for any broker wishing to target the upper tier luxury resort niche in their market or making the big decision to physically move to a luxury resort market area.
1. Location, location, location: There is a luxury market in almost every geographic location in the U.S. and world. Some of the obvious choices are resort areas in beach, lakefront, or mountain recreational environments. Laurie Moore- Moore, President of The Institute for Luxury Home Marketing, says either the upper 10% of your market sales or anything over a $400,000 home sale is a luxury market. I agree with her. Start making a concerted plan to target the upper tier segments in the resort of your choice. If you decide to move to a high-end market niche like Naples, FL, Jackson Hole, WY, or Lake Tahoe, NV, you better have a good business plan and fiscal reserves.
2. It’s expensive to be a broker in the resort market niche: Generally speaking if you make a decision to move to a luxury resort markets, then you better have at least one year’s budget for not only your living expenses but also for the considerable cost of doing business. The high end market niche demands expensive marketing either by direct mail, luxury magazines or newspapers, and the time consuming cost of networking in the circles of the wealthy.
3. Specialize within a market: If I had to do one thing over I would certainly not try to be all things to all people in a resort market. I would target a high end subdivision and spend all my resources, time and efforts on developing the reputation as an expert in one particular narrow niche. That might be a specific high end subdivision or particular type of property or only homes in that specific subdivision. You have to think a little differently than many courses in real estate that teach you volume is everything. That’s not the case in the luxury market niche. You want to be known as the expert of something. The simplest way to do that is to narrow your focus and think of building your business one listing at a time. The commissions can be substantial but surviving from commission to commission can be a challenge. By focusing your marketing to a small niche you can be much more efficient with your money.
4. Image building: If you want to be a luxury resort real estate broker, first you have to act like one. The best book I have ever read about how to brand yourself for the high end market is Laurie Moore-Moore’s book, “Rich Buyer, Rich Seller”. It’s an excellent outline on how to package yourself to enter the luxury market niche. There are many other organizations such as Who’s Who in Luxury Real Estate, The Board of Regents, Christie’s Great Estates, and Leading Estates of the World, that can help brand you for the luxury market. All of these will help create an image that you’re the right broker for this particular clientele.
5. High end marketing: You definitely will have to create an image through high end publications such as Unique Homes, Leading Estates of the World, DuPont Registry, Luxury Real Estate.com, Robb Report Vacation Homes, 2nd Home Journal, as well as a very high quality direct mail campaign using four color postcards. Everything will cost you more from your business card to your letterhead. One of the companies in the business that does an excellent job of packaging image and marketing materials is Hobbs & Herder.
6. Credibility: The single best criterion for someone starting out in the luxury market niche is continuous education and designations. The more you know the more power you have in getting those types of listings. You need to know more about a subdivision than the developer that built it. Having designations and affiliations in the National Association of Realtors, whether it is the Council of Residential Specialist, Certified International Property Specialist or an affiliation with the Realtor Land Institute for high end luxury ranches is critical. You are the product; give your customers and clients the best. Get educated… Get designated.
7. Negotiating: It’s ironic so many people are in the real estate business for years without ever taking a negotiating class. I call it ‘closings by accident’. The clientele you will work with in the upper market niche are well educated, sophisticated, are very successful and have the resources to buy in the high end market. If you read The Millionaire Next Door, you will find out over 90% of the millionaires in the U.S. made their own money in their lifetime. There is a huge misconception about the wealthy and how they acquired their assets. They don’t want a self taught surgeon, lawyer, or negotiator.
8. Who to work for: An excellent way to break into a market niche is to team up as an assistant or team member for a broker already practicing in that market niche. That will increase your education significantly and your credibility. You’ll have instant name recognition with a team that is already successful in that market niche. Hosting an open house for an established luxury resort broker is an excellent way to build up your high end client base. Pick a company that specializes in the upper end market or in a particular segment of a major company that specializes in the luxury resort market niche such as Coldwell Banker Previews International or ReMax Renowned Properties. Any or all of these help brand you with the high end luxury resort clients you’re after.
9. Networking: It’s everything. If you don’t know how to go about making contacts with the wealthy it’s easier than you might think. The wealthy are just like you and me in that they participate in non-profits, philanthropic organizations, and social clubs. This is a wonderful way to meet your new sources of business because you’re all on the same level working within philanthropic volunteer organizations that exist in every community. If you can’t afford to join the country club they belong to then volunteer for their golf and tennis tournaments and fundraisers. Volunteers are always needed for these kinds of special events.
10. Patience: The biggest single difference in a general real estate practice and the luxury resort market, is specializing, focusing, and concentrating on one client at a time rather than taking all listings everywhere. Thinking of one client at a time you want to overwhelm them with your attention to detail, thoroughness, communication and unique marketing skills whether it is a open house, direct mail campaign or the influence of a orchestrated marketing program that they have not seen before. If you win one client over and are successful they will tell everyone in their ‘speer of influence’. Think of winning your first client’s confidence to such an overwhelming level that you have that one client for life. That particular client may be connected to all the other people you’re going to ever do business with and they’ll tell everyone.
Working in the luxury high end and resort markets is definitely different than main stream real estate. Over 38% of the total sales in the U.S. are classified as second homes. There is a huge amount of business, some great commissions and a wonderful lifestyle to be enjoyed by those who succeed in this market niche.
George R. Harvey, Jr. is an Accredited Buyer Representative, Certified International Property Specialist, Council of Residential Specialist, Graduate of Realtor Institute, Masters of Real Estate .
Broker Associate, Telluride Properties
237 S. Oak St., P.O. Box 37, Telluride, CO 81435
Ofc: 970-369-5373 Fax: 970-728-5407
george@tellurideproperties.com www.theharveyteam.net www.tellurideproperties.com
237 S. Oak St., P.O. Box 37, Telluride, CO 81435
Ofc: 970-369-5373 Fax: 970-728-5407
george@tellurideproperties.com www.theharveyteam.net www.tellurideproperties.com
