With more people becoming higher-income earners, there is becoming a higher need for luxury agents.
According to an analysis done by Coldwell Banker Global Luxury, there may be more of a demand for luxury agents than we’ve seen in the past couple decades. The number of millionaires throughout the United States has increased to 32 million in 2018, meaning that more people have more money to spend than they did before.
Why has this change in wealth occurred? Economists believe that it is due to both the globally and nationally robust economy that has assisted American homeowners in reaching seven-digit tax brackets. In response, people are becoming more interested in luxury real estate, due to their newfound wealth.
According to Craig Hogan, vice president of luxury at Coldwell Banker, “Customizing the search and experience for these [high income clients] is the way of the future. It’s a waste of time to bother people at this level with offerings they’re not interested in and lifestyles that wouldn’t connect to them.”
Essentially, these clients who are reaching higher levels of income are in need of luxury real estate agents – those who specialize in finding the pricier, more accommodating homes. For the most part, if clients have the money to spend, they will.
However, Hogan also warns that, “Today’s luxury real estate marketing is not one-size-fits-all.” He stresses the importance in finding out what a luxury buyer is interested in beforehand, because every client is looking for something different: “It’s critical to figure out these people before engaging in conversation. If the agent has done their research and can draw these correlations, it may be the first of many conversations with this prospect.”
When it comes down to it, agents should always do their research. But there are always some situations, such as luxury real estate, where a bit more research is needed in order to provide exceptional assistance. Today’s luxury homebuyers attain certain “unique nuances” that they are looking for in homes, and luxury agents should be willing to understand said nuances.