How to Get Into Luxury Real Estate [The 2024 Guide]

The global real estate industry has become quite competitive, with many wondering how to get into luxury real estate. In this article we address such questions as: What is luxury real estate? Is there much money to be made in this type of business? Which cities and states have the most luxury properties?

What Is Luxury Real Estate?

High-priced property is not the only feature that defines luxury real estate. It should also be exclusive and unique to a certain clientele, who can pay premium prices. Property location also contributes to the price and overall image of the property. Additionally, luxury real estate should boast certain amenities, such as a home gym, a pool, privacy, and great entertainment features, as well as land surrounded by the best quality homes.

More Money in Luxury Real Estate?

If you want to get rich by selling $200,000 homes, then you’ve chosen the wrong career. Real estate agents make money from commissions. An average commission in the real estate business amounts to around 5% to 6% of the home’s price. So if you sell a $1 million home, you earn $50,000 in commission, including the 5% commission. The average luxury real estate agent salary is around $80,000 to $120,000 per year.

The main obstacle pushing those away from being luxury realtors and working with luxury real estate is fear. On the one hand, realtors are apprehensive about dealing with wealthy and high-net-worth individuals because, in many cases, these people can be less empathetic, somewhat insensitive, and unpredictable. But on the other hand, many are good people to work with—they’re quite conscientious and prudent with how they spend their money.

They often expect class, elegance, and premium properties. (We have included in our tips section what experienced luxury real estate agents do to meet the expectations of their clients.)

Luxury Real Estate in US Cities

The US has many ideal cities to accommodate luxury real estate. By utilizing real estate market analysis, we’ve put together a list of the top five most popular and luxurious real estate locations.

San Jose, California

Home value statistics, according to the luxury real estate market, reveal that the median value of homes in San Jose amounts to $1,091,100, with the percentage of million-dollar homes at 56,46%. San Jose is a beautiful place to invest money in real estate, as property sells quickly.

San Francisco, California

The median value of homes in San Francisco is around $910,300, with 42% of homes valued at or above $1 million. San Francisco is home to some of the wealthiest people in the US.

Los Angeles, California

LA boasts the median value of homes at about $650,000, with 400,000 properties valued at or above $1 million. The best real estate lead generation companies keep coming back to LA because it provides the best value. Los Angeles is one of the best places to invest money in real estate, as many rich realtors attest to.

Seattle, Washington

Seattle has a median value of homes at about $487,400, with over 100,000 valued at or above $1 million. Seattle is a good place to invest in luxury real estate, especially for those seeking calmness.

New York, New York

New York City has a median value of homes at about $457,000, with over 390,000 valued at or above $1 million. The city allows a lot of room for creativity with your investments in luxury real estate.

Tips on How to Get Into Luxury Real Estate

What should new real estate agents do? If you’re thinking of how to get into luxury real estate, consider these 8 tips:

Invest in Marketing

If you want to sell luxury real estate, your marketing strategy needs to differentiate you from other real estate agents. Create and produce marketing campaigns that look lavish and desirable.

To keep up with the market, keep up with real estate lead generation ideas and technologies. Your luxury real estate marketing budget should also be fairly ample.

A good social media presence is the best tool you can use. Your luxury listings should scream luxury and success to attract potential buyers.

Sphere of Influence

Aside from investing in marketing and promotion, you need to invest your time and energy in creating a good story about yourself by collecting some affiliate referrals. By word of mouth, you can create a captivating story to dazzle the most valuable homebuyers. And then arrange some kind of social gathering for your prospects to hear what you have to offer. There are many guides on how to do an open house, created by professionals who could help take you to the next level.

Budget for Quality Website

If you’re selling real estate to high net-worth individuals, you need to be on a high level yourself. You should first have an appropriate website because this is where your traffic will come. If you don’t know how to make a captivating website appropriate for your targeted audience, you can emulate the sites of some of the most successful realtors in the field of luxury real estate.

You should also have a business card to show your potential buyers that you’re a serious real estate agent who wants to sell quality and success.

Familiarity With the Neighborhood

Property location is essential when selling luxury real estate. If your potential buyers plan to spend over $1 million, they look for the best neighborhoods. For example, prime real estate in Hollywood or Beverly Hills are locations that are highly desirable when buying and selling luxury real estate.

Business Attire

Selling a luxury real estate also assumes that you know how to present yourself in the best way by dressing in business attire. This displays an ambiance of confidence.

Something in Common With Buyers

One of the ways to do well in the real estate business is to get closer to your buyers and nurture relationships.

More experienced luxury real estate agents often play golf or tennis and hang out in up-scale venues with wealthy people—building their reputation and brand, demonstrating that they have the style that’s needed in this type of business.

Co-list With Other Agents

Most real estate agents and luxury real estate brokers know the ins and outs of selling luxury real estate, especially in the local market. When co-listing with other agents, be sure it’s with someone who has proven work experience in luxury real estate.

Find a Mentor

You can’t learn everything about the real estate business overnight. In beginning your journey with luxury real estate, consider finding a mentor to guide you through the intricacies of the business.

Some agencies provide real estate mentoring services. After working with a mentor, you should be ready to work in the luxury real estate business or with a brokerage firm.

Key Takeaways

Conclusion

Luxury real estate is a profitable niche. It’s best to have some knowledge of this type of business and secure help from a more experienced luxury real estate agent. Starting will be tough. But continue to maintain self-confidence and prove to your potential buyers that you’re an expert in the field. This guide should help answer some of the key questions of how to become a luxury real estate agent.