A new generation – Millennials – have arrived on the real estate market and are actively buying and selling properties, both for income-earning reasons and for personal residences. With high six-figure or seven-figure-plus incomes, luxury real estate is steadily attracting a more youthful selection of home buyers.
However, what they want from their real estate professional is virtually the same as other wealthy buyers. While the end result is either buying or selling a home, the steps along the journey is where the true value lies.
Delve into the client’s motives
One of the first lessons a realtor learns is how to relate to the client. For mass-market homes, it may be small talk with the buyer or seller, but a luxury home-buying client will want a more direct experience, generally. Every question asked by their real estate agent should have purpose during the discovery phase.
Learn about what’s motivating the client to make a move, whether they’re listing a property, searching for a new one, or both. Discover what they liked about their previous home, their dislikes, and what are must-haves and must-nots for their new property.
Everything is a trust-building exercise, and it starts with an understanding of their needs.
Research local real estate extensively
The internet has put the average customer on the same level as a lazy realtor. Simply stated, wealthy homebuyers don’t have time for someone from a real estate agency that can’t tell them more than they either already know or can find quickly online. And as everyone’s aware, millennials are extremely savvy at research.
As a realtor, you must be able to provide localized data that isn’t found elsewhere – at least, not easily. That can be best routes to the client’s offices, school district data, average time on market and price for a neighborhood, comparable areas of the city, and any other unique information that will solidify their belief in your knowledge.
Concierge-style service is what they expect during the process. You’ll need to anticipate their expectations before they occur including home inspections, related costs, how they’ll care for the property, and more. This is why it’s critical to get an initial understanding of their motives. Otherwise, you’re guessing, not anticipating.
Someone who sells entry-priced single-family homes isn’t likely to have the breadth of understanding for what a wealthy client needs. For luxury real estate agents, it’s imperative that listings stay within a certain pedigree to portray an image the wealthy client is looking for.
Along with home prices, luxury agents should become well-acquainted with the types of mortgages and financial services that wealthy clients require. That may be bank statement loans or 1099-only mortgages, jumbo loans, mortgage that allows rental income as a means of qualifying. Realtors should also be able to connect clients to their financial contacts.
At MBANC, we can help you serve your wealthy homebuyers. Our products are tailored for high-income earners, investors, and business owners with possibilities for approval that are easy and fast. Learn more about how connecting with MBANC can serve your clients better.