If you jumped into real estate to get rich, you may have picked the wrong profession. At least that’s what salary pollsters will tell you. Most salary surveys will tell you that the average salary for a real estate agent in the U.S. is just $39,800 a year? That’s the average – so many agents aren’t making even that much. But there are real estate agents who do get rich. The big question is, ”How do they do it?”
To get rich in real estate, you have to understand one simple reality. To make $39,800, you can sell 20 homes with a $2,000 commission, 10 homes with a $4,000 commission, 4 homes with a $10,000 commission, or 2 homes with a $20,000 commission.
What most real estate agents don’t realize is that it takes a lot more work to sell those 20 cheaper homes than it does those two expensive homes. In fact, if you could sell just two luxury homes a month, you could make that $39,800 every month. That’s nearly a half-million dollars a year! So why don’t more real estate agents go after the more expensive properties?
The reason is simple. In my experience, the number one reason real estate agents don’t try to work in the luxury market is fear.
Most real estate agents sell homes in the areas in which they’re most comfortable. If you’re comfortable selling $200,000 homes, then those are the customers that you will find easiest to attract and sell to. And this is where you will find the secret to getting rich in real estate.
Since they’re not used to living in, visiting, and selling expensive homes (and working with wealthy people), there’s a fear of the unknown. But is this fear is grounded in reality? An article in New York magazine found that wealthy people are not empathetic, they’re insensitive to and disregard other people, they have a tendency to cheat, and they’re even more likely to be jerks while driving.
So who would want to work with the wealthy? Well, you should, if you want to get rich in real estate. There’s no doubt that people with money can be more exacting. They’re very careful how they spend their money – which in many cases is how they got rich in the first place. They’re spending a lot of money on this home, so they should get what they’re paying for. And they can be short with their words because their time is very valuable.
But, frankly, I don’t agree with the New York magazine. I’ve found that most wealthy people are great folks. Yes, they have their quirks just like everyone else. And the rich like to work with people who conduct themselves with class, competence, and confidence. If you don’t have these, you might have reason for your fear – but all of this is fixable with our coaching program.
If you’re interested in selling luxury real estate, there are a few things you can do today to get started. First, make sure people know that you broker luxury real estate. If people don’t know you handle large accounts, they won’t hire you for the job. Second, market yourself to the luxury market. This can include sponsoring or attending targeted events. For instance, host a cocktail reception showcasing a flatware collection. One agency did this and generated several $5 million-plus sales.
Finally, you have to overcome your fear. This comes with training & coaching. These are just a few of the many secrets I use to sell luxury real estate. Remember, while selling one $300,000 home is easier than selling one $3 million home, selling one $3 million home is much easier than selling ten $300,000 homes.