Working with a luxury buyer presents a very different experience than working with any other demographic. Those who are looking to purchase a high-end property are discerning and highly-informed — and expect their agent to be as well. As a result, the questions they ask are less about learning about a market’s livability and more about what the market can offer them for recreation and investment.
Success with luxury buyers depends on understanding this mindset firsthand by immersing yourself in their lifestyle. Doing so can give an agent an insider perspective that helps them understand the emotion, drive, and desire behind a buyer’s decision in an authentic way.
Once familiar with their frame of mind, you’ll be ready to address the common concerns of your high-net-worth clients.
“What makes this specific property the most desirable?”
Luxury buyers are often purchasing a home outside of their primary place of residence; for the ins and outs of the local market, they’ll turn to their agent. Agents should be prepared to understand the features that are unique to specific regions.
“What can the property earn?”
Unlike a general home buyer who is seeking a main home, luxury buyers generally own — or have owned — multiple properties. Frequently, they want to know the resale value, or the potential to rent the home out as an income property. For this reason, it’s important for an effective luxury agent to know what the rental market looks like. While luxury buyers can connect emotionally to a home, they also view it from an investment perspective.
“How convenient is this location for travel?”
Another difference between luxury buyers and other clients is what they need to be close to. While the traditional buyer may want to be near schools or relatives, luxury buyers are often more concerned with the home’s proximity to the town center or the ability to walk or bike in for a coffee.
While a well-prepared agent can expect to answer questions about local restaurants and shopping, travel is top-of-mind for the busy luxury buyer. Being able to identify the feeder markets near your listings can prepare you for questions before they come up in conversation, especially when it comes to specifics on commutes.
To best answer the questions of the luxury buyer, it boils down to thinking like a local and networking like a global brand.