How To Sell Luxury Real Estate In 8 x Steps
Selling luxury real estate when done correctly, can be an excellent and lucrative career.
The contacts you make and the people you serve can potentially help you for many years to come; not to mention, may have some terrific referrals for you too.
So how do you sell luxury real estate?
In this guide, you’ll learn how to sell luxury real estate in eight steps, using a system followed and successfully executed by our Students from various countries, and who speak many different languages.
Read on to learn how you can too.
How To Sell Luxury Real Estate In 8 x Steps
Prior to learning how to sell luxury real estate with your face to face sales conversations, first we have to explore your sales prospecting methods.
Generally, there are three different kind of sales prospecting methods:
- Inbound prospecting
- Outbound prospecting
- Cross selling
Inbound prospecting is the method of setting up marketing systems, that help leads come to you.
This includes setting up a website or landing page, and then driving web traffic to either the page or website using paid advertising.
Also known as a sales funnel; this can be a very beneficial marketing system, because it still works on autopilot when you’re not manually working.
To learn about setting up inbound marketing systems for your business, check out the link below.
Outbound prospecting is the method in which you proactively reach out to potential clients, who would be in the market for luxury real estate.
This may be people you find online such as LinkedIn, or people in neighbourhoods which already live in properties categorised as luxury.
Prior to starting your outbound methods, do a quick marketing strategy breakout session, and understand their key demographics.
- Where do they hang out? (clubs, other hobbies, shopping malls etc)
- What is their age?
- Their interests, people they associate with
By learning some key demographics, you’ll be able to properly ascertain who you should be networking with, and how you should be branding yourself to get the correct exposure.
Cross selling is the art of using people on your team, to work with you to close more sales.
Although cross selling is generally associated with people who work directly with you; there’s nothing stopping you from having people on your team on an informal basis, who help you out from a referral point of view outside of your business.
Depending on what the laws state where you live, you may even be able to compensate people who refer qualified prospects to you after the sign on as clients.
If you’re a Real Estate Sales Professional, can you build relationships with:
- Mortgage Brokers
- Local up market hobby clubs
- Other niche businesses your clients hang out
To learn more about cross selling, check out the related article below.
Relate article: Cross Selling – Your Ultimate Guide
Your Face To Face Strategy
You may be excellent at generating leads and brand awareness; however, if you don’t know how to follow a step by step consistent system to close sales, you won’t be successful in selling luxury real estate.
A step by step system, also known as a sales process, is a guide in which you use over and over with all your potential clients – so that you can win more sales consistently.
Consistency is key when learning how to sell luxury real estate.
By doing so, you’ll be able to use a road map to guide you and your potential clients towards the sale over and over again.
How To Sell Luxury Real Estate #1 – Rapport
The first step in learning how to sell luxury real estate, is building rapport with your potential clients.
Rapport is the art of finding commonality between you and the people you want to serve.
Many people define rapport as being cheerful, enthusiastic and optimistic, but that couldn’t be further from the truth.
Although these can be important ingredients, rapport has a different meaning.
When we communicate, we do so subconsciously and consciously.
The Communication Ratio
We communicate by following something called a communication ratio.
The communication ratio is:
- 55% body language
- 38% tonality
- 7% our actual words
This means that we’re always communicating; even when we’re not speaking.
If you want to learn how to sell luxury real estate and do it successfully, you need to dress to impress.
Hold yourself in a confident manner; yet not cocky.
Ask more questions than how often you speak.
To learn how to build rapport and nurture relationships, read the related article below.
Related article: A Guide To Building Relationships/ Building Rapport
How To Sell Luxury Real Estate #2 – Set The Frame
The second important step when learning how to sell luxury real estate, is setting boundaries and expectations around how your conversation will go.
At The 5% Institute, we call this a Pre-Frame.
A Pre-Frame is setting up key expectations with your potential client, so they know what they can expect, and so that you can successfully lead the sales conversation.
This does two key things:
- It positions you as a Specialist, rather than just another eager salesperson
- It eliminates major sales objections
By setting a Pre-Frame, you ensure up front that you’re meeting with decision makers.
Many Sales Professionals make the mistake of presenting property to people who aren’t decision makers, which results in potential clients saying, “They need to speak with XYZ”.
By using the BANT method for qualification, you can ensure up front that you’re meeting with decision makers.
Secondly in the Pre-Frame you want to let people know that at the end of the conversation; you’d like to know their thoughts on whether you can in fact assist, or whether you can’t.
This ensures you get a definite yes, or definite no.
Maybe’s don’t pay the bills – and uncertainty is what you want to avoid.
Finally – you want permission to ask deep diving questions.
Questions are the key to selling luxury real estate.
To learn more about putting together a Pre-Frame, check out the related article below.
Related article: How To Overcome The Two Main Sales Objections In Two Minutes
How To Sell Luxury Real Estate #3 – Understand Their Buyer Persona
An important tip when learning how to sell luxury real estate, is understanding that people buy for various reasons.
The same is true for luxury real estate.
Why are they buying; and what is their buyer persona?
Are they buying to enhance their status?
Perhaps they’re moving into a new area and want to make a big impact.
If they’re investors; they may know that buying luxury real estate is a safer bet for their investment growth and strategy.
Learn by asking questions what their intent, and what kind of buyer you’re dealing with.
By doing so, you’ll know what to focus on, and what kind of questions to ask.
How To Sell Luxury Real Estate #4 – Pain
If there is no friction, there will be no sale.
This is true for selling any product or service, and the same for luxury property.
If you want to learn how to sell luxury real estate, understand that people buy luxury property because there’s a disturbance sitting in the back of their minds.
They may want to upgrade; because their current property isn’t satisfying them anymore.
Perhaps their friends and family have purchased a big property; and they want to keep up for status reasons?
Ask questions that understand their pain points, and deep dive into the why behind the buy.
Learn what the issues are with their current living situation, and why a luxury property will solve those issues.
Related article: 10 x Powerful Sales Discovery Questions To Add To Your Toolkit
Tip #5 – Pleasure
Speaking about meaning; the next segment to understand when learning how to sell luxury real estate, is knowing that people also buy to move towards desire.
People buy for two reasons – to escape pain, and to move towards pleasure.
Potential clients become clients because they buy emotionally – and justify with logic.
What pleasure will they have when they buy a luxury property?
Learn what it will mean when they own the property and focus on questions that’ll uncover this.
Related Article: Why People Buy
How To Sell Luxury Real Estate #6 – Money
Now that you’ve asked the right questions and understood what owning a luxury home will mean when they own it (from a pain and pleasure perspective), the next step when learning how to sell luxury real estate – is talking about money.
In The 5% Sales Blueprint, we call this segment ‘Money Talk’.
This means learning two key things:
- How much money have they put aside, and budgeted for their luxury property
- What will it cost if they don’t invest in a luxury property, and stay with their current situation/ property?
By asking both powerful questions, your potential clients will openly discuss that it will cost them if they do nothing, and secondly – tell you about their budget before you even start showing them luxury properties.
This approach is different from amateur Real Estate Brokers; who prematurely present, hoping something will stick.
Instead, we teach our Students to approach it like a specialist.
Understand first, and then prescribe.
How To Sell Luxury Real Estate #7 – Presenting
Finally, and only after you’ve followed each of the steps covered in this sales process, are you able to present your properties.
As outlined; if you want to learn how to sell luxury real estate, you need to position yourself as a Specialist, rather than another commodity.
Most Brokers will do show and tell, hoping something will stick.
Instead, learn about their current situation, pain points, desires, and then present accordingly based on what you have to offer.
In our presentation guide, we outline the following steps to successfully present any product or service; including luxury homes.
- The right people
- Use stories
- Use proof
- Present in person
- Don’t just talk
- Be visual
- Get feedback
- Keep it short
To learn how to effectively put this together, read the related article below.
Related article: 10 x Effective Sales Presentation Tips You Need To Use
How To Sell Luxury Real Estate #8 – Asking For The Sale
Finally; the last part of learning how to sell luxury real estate is not being afraid of asking for the sale.
When closing and asking for the sale, I like to ask a set of closing questions to learn what to do next.
This will help you understand whether or not you need to handle sales objections, or whether you can proceed to arrange the paperwork.
The questions I like to go to when asking for the sale are:
1 – “Would you like my help with this/ insert fixing problem?”
2 – “If we could find a way to deal with your *insert area of concern*, would you be happy to proceed?”
3 – “Based on your feedback and our solutions to your issues, it looks like our *insert your product or solution* is the right fit for *insert their company*. Would you agree/ what do you think?”
4 – “Would you agree that it’s worth giving us a try, to solve your *insert their problems and pain points*?”
5 – “What happens next?”
Keep in mind – these are just a guide.
I strongly recommend that you don’t use sales scripts, and instead make the questions your own – and suited to your personality and that of your client.
Related article: 8 x Closing Tips To Win More Sales
When learning how to sell luxury real estate, it’s important to ensure you follow a step by step sales system.
A sales system can literally be the difference of sales success or positioning yourself as another commodity.
If you’d like to learn the exact road map to use to sell luxury real estate and save years of trial and error, register for our 7 day sales challenge here.