FRIDAY BUSINESS TALK

LUXURY REAL ESTATE PROSPECTING IN HIGH-NET-WORTH CIRCLES

Written By Dr Laide Okubena

While the number of high-net-worth individuals is growing faster than ever, many new luxury real estate professionals haven’t had much exposure to them, especially via luxury real estate prospecting. So when it comes to hashing out your luxury real estate marketing strategy in those early stages of your career, you may find yourself wondering how to go about luxury real estate prospecting in a way that both positions you as an expert, but also respects your ideal client’s boundaries and privacy.

The fact is, even if you’re not new to real estate, luxury real estate prospecting can be very different from what real estate professionals experience in the traditional market. At its core, luxury real estate prospecting marketing moves slower, is more subtle, and is often more strategic.

And it makes sense…

Most high-net-worth individuals are used to people soliciting them for opportunities of all kinds — from work opportunities to the chance to become one of their trusted advisers in one way or another. These individuals often have stronger boundaries and place a higher value on privacy than any other demographic, which means connecting with them can take a little more planning and the patience to let them set the tone for the relationship.

According to David Friedman, co-founder of Wealth X and Wealth Quotient, many professionals go about luxury real estate prospecting backwards, often trying to connect directly with their ideal clients using an “outward-in” approach. Instead, he recommends using an “inward-out” approach, which positions the luxury real estate professional as a “vetted referral” instead.

To use this strategy, here are a few luxury real estate prospecting techniques to consider:

LUXURY REAL ESTATE PROSPECTING TIP #1: ASK FOR INTRODUCTIONS TO SPECIFIC PEOPLE

Once you have certain high-net-worth individuals in mind whom you’d love to serve, David recommends connecting with their inner circle first. If you are  a  Member of a Certain Business Club, they are certain Professional Groups or Associations you can join.

you have access to the  database that helps luxury professionals gather data on prospective clients to make better connections.

Both of these tools allow you to see who’s connected to whom, which charities and organizations people are connected to, and other details you can use to help you get an idea of where and how to position yourself.

Once you’ve done your research, you’ll have an idea of specific people you would  like to connect with. That means you can stop asking the open-ended question, “Who do you know?” and start asking for specific people instead when you are networking in their circles.

It might feel intimidating at first, but you would  be surprised at how much more effective this simple adjustment in your approach can be. Why? Because even if the particular person you’re asking for isn’t the right fit, or your connection can’t get in touch with them, it may jog their memory to connect you with someone else who may be just as useful.

LUXURY REAL ESTATE PROSPECTING TIP #2: ACTIVELY SEEK REFERRALS

Again, high-net-worth individuals are more likely to do business with someone they know — even through a trusted acquaintance — than let a brand new adviser into their circle. With that in mind, it’s essential to actively seek referrals from your happy clients. In fact, NAR says nearly 70% of clients would refer their agent to a family member or friend — if they could remember who their agent was.

So, what happens if you don’t follow up and ask your happy clients if they would  refer you to a specific person or to someone they know who’s buying, selling, or investing? You’re leaving money on the table.

LUXURY REAL ESTATE PROSPECTING TIP #3: BE A PROBLEM SOLVER

If you don’t want to fully rely on the “inward-out” approach, another strategy for marketing to high-net-worth individuals is simply to solve their problems.

These days, it’s easier than ever to share your expertise. Many high-net-worth individuals use the same social media and professional networking platforms as anyone else, which are great places to consistently show up with valuable information specifically pertaining to their biggest pain points. Some examples include:

 use of property ;

Legacy planning;

Asset appraisals;

Tax consequences;

And other real estate and financial topics of interest to individuals with lots of capital to spend, organize, and invest.

LUXURY REAL ESTATE PROSPECTING TIP #4

ATTEND HIGH QUALITY EVENTS. 

In person instantly creates trust - so events and gatherings are a great place to land high-ticket clients fast. Dress the part. Show up with confidence. And make a stellar impression by giving attendees your full presence (make them feel like the most interesting person in the world). Next? If they're a lead, ask them for their email address, so your assistant can set up a call (take leadership - don't leave it up to them to reach out!)

LUXURY REAL ESTATE PROSPECTING TIP #5

UPSELL EXISTING CLIENTS

It's very likely that you already know all the high-ticket clients you could wish for in 2021. And they might even be people you're currently working with! Instead of trying to squeeze everything into a package that doesn't give them what they need, have a chat, and Customized their needs. 

You can ask questions like 

how about we upgrade you to a package where you receive A, B and C instead of just A?" You'll be surprised how often this makes them feel acknowledged in their experience, as they happily move into the position of high-ticket client.

Question of the day

What did you learn from this Luxury real estate prospecting in high networth circles?

Thanks for your attention and please enjoy your day.

Do have a wonderful weekend.

© Dr Laide Okubena