Working in the Upper Tier
Tips about working with the affluent and marketing their homes.
Those few
moments of service delivery are a company’s make-or-break point, when it’s reputation is either confirmed or denied. u
Four Seasons Hotel and Resorts
Facts: u Market researchers define “the affluent” as being the top 25% of
U.S. households. u The higher the home price, the smaller the pool of potential buyers. u U.S. Census confirms that household income for the: • Top 25% of U.S. households begins at $85,000. • Top 13% of U.S. households begins at $100,000 • Top 6% of U.S. households begins at $150,000
The Affluent: u Buy areas and price range. u Like to feel important because they are. u Are typically savvy, experienced business professionals who obtained
substantial net worth through making wise business decisions. u Already have friends. Focus 100% on earning their respect and business as a professional. u Are interested and active in charitable causes, arts and culture. (Hint: If you are actively involved in giving back to the community make sure you refer to this in your professional biography.) u Are well connected and are influenced by professionals on whom they rely for advice/services, business colleagues and friends. (Hint: Become well connected, network frequently, never ‘name drop’ and don’t gossip.)
About Your Attitude: u You cannot sell upper-tier properties without enthusiasm. u Be committed. If you get want to work in your market’s
upper-tier, be prepared to stay in it. u Don’t be intimidated by your clients’ success or wealth. Your clients are looking to you for professional advice, so be honest and maintain your confidence. u Don’t WANT the deal more than your clients do.
Convention 2007
No industry can create time. So, the luxury experience must remove the hassle and complication, and provide ease and comfort. u Steve Case Founder, America Online
On Professional Conduct: u Develop excellent relationships with all competitors in your area.
The buyers and sellers come and go, but you will need to work with your colleagues for years. u Be punctual, organized and businesslike. Be a problem solver. Always say, “In my professional opinion...” u Listen carefully and keep notes. Refer to them often. u Be full time. Clients do not want an agent who works part time. Always be available. u Don’t ask clients what they can afford. Rather, ask them what kind of investment they are considering. u Don’t ask clients to reduce the asking price of the property. Rather, let them know it is time for a market adjustment. u Know your client before you discuss the social amenities of a community. Some may want a very social community — but others may want privacy. u Enjoy your client’s company.
On Integrity: u Show respect for client dollars. Never say
On Personal Appearance: u Look like you
are worth listening to. “Dress for Success.” u Wear a professionally produced name tag on your lapel during all business hours. u For business appointments, carry a briefcase, notepad, good pen, up-to-date business cards, and a professional biography. u When you are in an expensive community for casual reasons during the weekend, dress ‘business casual’ and carry your business cards. u Make certain your automobile is always clean and polished inside and out.
“it’s only $10,000.” It’s not your money. u Be prepared to negotiate on your clients’ behalf. u Never “think” for your clients. Avoid saying things like, “I would never let my client...” u Assure the client that their business with you is 100% confidential, and keep your word. u Avoid unpleasant surprises and discoveries. Disclose all information you have or become aware of regarding the property they are considering. u If you don’t know the answer, or are unqualified to give it, assure your clients that you will point them to an expert.
On Client Service: u Treat all of your clients with the same level of high respect.
Consistently provide first-class service. Remember that today’s mid-market client may be tomorrow’s affluent client. u Be available — you must work on their time schedule. Be sure to understand what that means for them. u Qualify them (carefully) and spend every waking moment attending to their every wish. u Return every phone call on an upper-tier property immediately. If you receive an email about an upper-tier property, respond to it immediately by phone (if possible). u To raise the bar — practice, practice, practice! u Hand-deliver information — go to their home, office, or even their boat! u Be different. To be remembered you need to offer a better and different level of service. u Clients expect full service. Always be prepared with a list of plumbers, painters, decorators, etc. You must have complete confidence in anyone you refer because their conduct and work product reflect on you.
Convention 2007 (C) 2007. The Help-U-Sell® trademark is owned by Realty Information Services, Inc. d.b.a. Help-U-Sell Real Estate.
Before Your Listing Appointment: u Know the average days on mar-
u Recognize the potential impact
ket for a listing in the price range that new home inventory may appropriate for it. Factor in market have on pricing and selling of conditions, your subject property’s an existing home. Buyers will be condition and on-market listing comparing both. Home staging is competition. vitally important. Then compare subject listing to u Remember that how you present any new construction in the maryourself and the knowledge that ket priced within a similar range. you bring to the listing presentaNow, you are ready to create a tion will be discussed by the home realistic marketing plan for the owners as they converse with anticipated life of the subject colleagues and friends about their property. This in-depth knowledge hiring decision. is invaluable for establishing realu Be prepared NOT to take the istic home pricing and marketing. listing if the homeowners have unu Know the number of days on realistic expectations about pricing market for properties not only in or anticipated time on the market. the price range you are recomPolitely decline the listing oppormending, but also in the range tunity at this time based on your just above and below it. Know the research findings. Assure them you typical percentage reduction that will be happy to meet again should occurred over the life of those listthey reconsider their position. ings. You can’t be over prepared for an upper-tier listing appointment.
On Investing in Marketing: u Not only is it expensive to be in
the upper-tier — it can be expensive for a long time. “Breaking in to the upper-tier” requires a larger financial investment than main taining your exposure after you become established. u Determine how much discretionary income you have and plan to spend it during the year. It is an investment in your future business. u Don’t spend advertising dollars unless you are willing to “follow up”, i.e. put in time and energy along with the dollars.
The absence of defects is simply the ticket into the game. u
Jud Linville, President, U.S. Card Services, American Express
On Your Listing Appointment: u Be in and out in 45 minutes. If your listing appointment
takes longer, you are talking too much.
u Listen carefully during a listing appointment. Example: if
the client is describing their alarm system in great detail, they are probably not going to want public open houses. u Be last. The last person to be interviewed for a listing has the best chance of getting the listing. u Don’t take a listing at a price that is “pushing the envelope” compared to recent sales. The client needs to know you believe in the price and property. u If you take an overpriced listing, get it in writing that “in x months, the seller will readjust the price to the market.” u Make your clients feel that they are the decision makers. u Educate the client on preparation of the product. If necessary, recommend that they consult with an interior decorator (whose work you know) to ready their home for the market.
Keep in Mind: u What you do to market your listings is
a reflection on your knowledge and professionalism in the upper-tier marketplace. u Affluent homeowners and homebuyers have an expectation of “the best.” You must be prepared to give it and show it in everything you do. u The goal of marketing is to attract buyers. Marketing does not sell property: you do. u It is likely that the same property features that first attracted your sellers to their home will be the same ones that will attract prospective buyers today. What are those features? How can this information be useful in marketing the property?
Must-Haves: u Home in “showcase”
condition: exterior curb-appeal and interior “staged”. u Great photography. (Build the cost into your basic marketing plan!) • Exteriors: photos taken at dusk, dawn, or on an overcast day for best results. Change photo seasonally. It may be necessary to “touch up” lawns and sky and reduce any shadows or glare. • Professionally lit interiors u High quality, color property brochure. It must look and feel upper-tier. u High quality, color post cards u eCard and eBrochure
Should-Haves: u (If allowed by community) “Take-One” box near
sign and laminated home feature sheets. (Replenish box each week. Move yard sign each week. Review landscaping for “curb appeal” at same time.) u Co-broke open. Depending upon community and owner pre-disposition, consider a private showing for neighbors.
Marketing Plan Components: u Ask yourself, “Where are prospective buyers likely
to be? What interests/occupations might they have?” u Direct marketing. In addition to geography, consider: • Special interests depending upon property features or location. Example: boat owners; horse owners, garden club members. • Influencers: interior decorators, art gallery owners, antiques dealers, accountants, tax attorneys. u Advertising must be consistent over time. In addition to “typical” listing marketing: • Reflect the community: publications targeting cultural/lifestyle interests. Examples: Asian Journal; Jewish Times; Club publications, Farm/Ranch publications, etc. (hint: check with publication to see if mailing list rental is available). • Reflecting the occupations: business, medical, legal. Examples: city Business Journal, local Medical center publication, city Bar publication or regional edition of Wall Street Journal.
Convention 2007 (C) 2007. The Help-U-Sell® trademark is owned by Realty Information Services, Inc. d.b.a. Help-U-Sell Real Estate.
Getting ready is the secret to success. u
Henry Ford
We are what we repeatedly do, excellence then is not an act, but a habit. u
Aristotle