Bernice Ross

Behind the glitz and glitter of the million-dollar real estate agent is the hard truth is that very few agents break into the stratosphere of the ultra-high end market. Client expectations are through the roof, competition is akin to a great white shark feeding frenzy and everyone is ready to lawyer up the moment anything goes wrong.

When it comes to selling real estate in ultra-high-end markets, over-the-top-broker open houses, exceedingly expensive marketing campaigns and coping with celebrity egos and tight-fisted business managers have always been part of the landscape.

If you are interested in knowing what is required to play in the ultra-luxury market, here are a few of the basics.

Two Types Of Luxury Clients

Millionaires next door don’t display their wealth. They live in relatively modest houses, drive their luxury vehicle for 10 to 15 years, and are more focused on their families and giving back to their communities.

The other high-end client has a hedge fund mentality, is opportunistic when it comes to what and when they purchase, and is in constant in competition for who has the biggest and the best. Needless to say, the ultra-luxury market is populated primarily by those who want to strut their wealth.

Millionaires next door will be more interested in working with someone who shares their passion for a favorite charity, is actively involved with where their kids attend school or at their place of worship; the hedge-funders generally want a high-profile, superstar agent.

Quirks, Fears And Privacy

Ultra-luxury clients have some unusual quirks coupled with very legitimate fears about the dangers they face. The ultra-wealthy are also often into collectibles. They may collect exotic automobiles, posters from really horrible movies or even old cereal boxes.

They also have very legitimate concerns about their risk of being kidnapped as well as having an overzealous reporter invading their privacy. This is one reason why someone like Bill Gates or Elon Musk will market their properties through private sources rather than on MLS or other public sites.

Consequently, any agent working with these individuals must be prepared to handle what borders on obsessive-compulsive behavior regarding germs, their collectibles and most importantly, their privacy.

Because of risk of kidnapping as well as their privacy concerns, people like Bill Gates or Mark Zuckerburg almost never will have their properties marketed publicly. Instead, they rely on their agent’s network, which should be an extensive list of high net worth individuals, their financial and/or business managers, plus the charities and causes where they are the most active. Their agent will also have a strong international network, especially if they are in areas where there is substantial investment from global clientele.

Agents who represent ultra-luxury clients understand the importance of spinning the story about the lifestyle the client will experience when they purchase the property. A key part of the story is what makes the property truly unique.

While print and online marketing is important, it pales in comparison with video marketing. The next step beyond videos are the 3D virtual reality tours that are now available. While words allow the agent to convey details, the visuals that illustrate the lifestyle will be what makes the sale.

Ultra-luxury agents know that time is their clients’ most valuable possession. To effectively serve these clients, in addition to handling all the transaction details you must be up on every detail of the amenities in your market – where to service their airplane(s), the best dog groomer in town, where to get the best deals on everything from furnishing to fresh flowers.

Essentially the client wants to write the check and have you handle everything. This can even include getting a house fully furnished right down to the toothbrushes.

The Dragon In The Deal

Everything is great until your client says, “Call my business manager, Dwayne – he handles everything.” Unlike your client, who is acting on emotion, the deal won’t happen unless you satisfy Dwayne the dragon, who will be all about the numbers, the legalities and how quickly the property can be liquidated if need be. In fact, there may be three dragons in the deal – the attorney, the CPA and the business manager/personal assistant. Each of these individuals will have very different concerns, all of which the agent must negotiate to close the deal.

When commissions can be $100,000 or more, it takes much more than just having the right connections to fulfill client expectations. These clients are drawn to agents who share their values, who are willing to cater to their whims and wishes, and who have exceptional skills and reputations.

Do you have what it takes to play in this game?