Introduction to luxury real estate

Toni Pérez, a real estate agent with more than 20 years of experience, reveals his tips for marketing luxury properties. 

The concept of luxury in real estate

Luxury is a broad and subjective term, especially in real estate. It is not only limited to high price or large-scale properties, but also takes into account the exclusivity, uniqueness and location of properties, as well as their history and cultural or architectural relevance. In general, luxury properties are considered to be all those in the upper 10% of the value range of each zone, although they are often also marketed in luxury properties with a not very high value, but which have some characteristics that make them unique and exclusive, such as location, age, history, or even having been owned by someone known... 

It is a growing sector, as according to the latest Knight Frank report on luxury (Knight Frank's Wealth Report) the number of wealthy people globally is expected to increase by 28.1% over the next five years. And of these, 22% will want to invest in housing.

Keys to Success in Luxury Real Estate

Success in the luxury real estate sector as a real estate agent transcends the real estate transaction, as it requires immersing oneself in the lifestyle of clients, building relationships based on trust and personal recommendation. Effective networking at social events, exclusive clubs and spaces where these clients move and socialise is essential. So we need to belong to and move around gastronomic clubs, luxury car clubs, art auctions, etc.

"For a real estate agent specialising in the marketing of luxury properties, the key to success is to immerse yourself in the lifestyle of the luxury property owner.

In addition to basic real estate knowledge, it is essential to be trained in areas such as architecture, art and general culture. Personal image, knowledge of protocol, the customs and habits of people from different cultures and religions, and etiquette (different at a dinner, brunch, cocktail party or gala) also play a crucial role in how we are perceived. Understanding and appreciating our clients' interests allows us to connect with them on a deeper and more personal level, thus facilitating long-lasting and fruitful relationships.

The basic protocols for marketing luxury properties

Marketing in the luxury sector needs to be subtle but impactful. Property promotion should hint at the lifestyle it represents, using media that resonate with the target audience, such as trade magazines, luxury portals and, especially, social media.

In social networks, properties are insinuated and we must take advantage of the potential of networks such as LinkedinThe "decision makers" are invited to connect with them by participating in conversations within their sphere of interest.

Non-verbal communication, discretion and personalised treatment are aspects that cannot be underestimated; every detail counts in delivering an exceptional customer experience. For example, it is important to have a personal rather than a professional approach and to convey ease and confidence. Do not act like a salesperson or hand over your business card if you are not asked for it, for example.

Discretion is essential, as owners of exclusive properties often do not want the fact that they are selling their property to be made public. In reality, however, maintaining privacy and confidentiality is essential for both buyers and sellers. As real estate agents mediating the transaction, we must keep a low profile throughout the process, ensuring that the sale or purchase of exclusive properties is handled with the utmost care to protect the identity and interests of all involved. 

How do we advertise luxury property for sale?

We must employ subtle strategies and "secure environments" that protect the privacy of all parties involved in the real estate transaction; a good example is the organisation of private events that connect sellers and buyers without attracting unwanted attention from third parties or even the media if they are well-known personalities.

The diffusion of luxury properties has its own channels such as specialised real estate portals (James Edition, Global Mansion, Luxury Real Estate), specialised magazines and social networks for high-net-worth users such as A Small World, for example, which is a paid social network and can only be accessed by invitation.

Collaboration with private banks, high-end dealerships, golf clubs and other entities where this customer segment regularly travels can amplify our reach. In these encounters, offering a wow experience to the potential customer will bridge the gap, creating an unforgettable moment, even if the purchase does not materialise. An impressed customer is an excellent brand ambassador. And in these circles, word of mouth is essential.

Tips for real estate agents looking to enter the luxury real estate sector

For those real estate agents wishing to enter the luxury sector, it is advisable to start by collaborating with event companies, film or television production companies, and other entities that can offer a gateway to the world of luxury. This approach not only provides valuable experience but also facilitates the creation of an essential network of contacts for the future.

They can also promote their appearance in the media as experts in the marketing of luxury homes in order to gain position against competitors, but also among other real estate partners, because whenever they have an application or a product to sell that is luxury will remember them.

Luxury real estate is demanding but very rewarding for those willing to put in the time and effort to understand and adapt to its unwritten rules. 

The key to success lies in knowing how to combine discretion, specific knowledge (legal, fiscal...), a solid network of contacts and a deep understanding of the lifestyle and expectations of this client segment. With these pillars, any real estate professional can build a successful career in this exclusive niche, providing not only properties but unforgettable experiences.