If you're like most people, if I mention the names Altman, Flagg, Serhant, and Eklund, you know exactly what I am talking about. Of course, it's the hit reality TV series Million Dollar Listing on Bravo. Admittedly, I am one of the millions of viewers that watch the show.
In the past, medical TV shows were the rage. Since I'm not a doctor and EVERYONE in my immediate family is one or married to one, I would ask the doctors all the time what is true in real life and what is not. Many times the shows were pretty accurate, BUT MANY TIMES they were not.
The same thing goes for the Million Dollar Listing series. Because of this, I hear all the time how selling luxury real estate for a living is a dream job. For me, it definitely is. But, with that said, let me give you an insight into what they don't tell you on the shows.
An average week for most agents doesn't start with a phone call from a multi-millionaire telling them to come over to list their $10 million mansion on the water, then having a brokers' open a few days later, and picking up a $300,000 check at the end of the week. If it were that easy, the richest people in the world wouldn't pay that much money to sell their homes.
So what happens in real life besides the brokers' opens, huge commission checks, and the come list my multi-million dollar mansion calls? A lot! Below are some things that don't happen very often selling luxury real estate.
- Negotiating almost always doesn't involve meeting your seller at a fancy restaurant and calling the agent and going back and forth for a few minutes until there is an offer accepted.
Instead, usually, I receive an email with an offer. I'll call the other agent and get all the questions answered that I think are pertinent to the transaction, find out more about the buyer, and speak to the seller about the offer in detail.
More phone calls to the other agent, emails, negotiation, and informing the seller about potential issues with the offer and realistic expectations going forward.
- A brokers' open isn't usually what sells a home. Even though that's the case, in the luxury market, brokers' opens are much more important than in the traditional real estate market.
Because many of these higher-end homes aren't cookie cutter homes and are unique, it is important to know the inventory whether you have a buyer at the moment or not.
- Buyers usually take much longer to select a home to put in an offer than you see on the show. Once in a while, buyers will fall in love with the first home they see and put a full price offer on the home. But that is definitely the exception to the rule in today's luxury market.
There is an abundance of inventory in most areas and homes take much longer to sell. In fact, in today's less expensive market (roughly $400,000 or less), many homes are selling right away for the asking price with multiple offers sometimes. The inventory in this market for single family homes is much tighter.
Below are some things that happen daily selling luxury real estate that most Million Dollar Listing viewers aren't aware of.
- The thing that is constantly going thru my mind every single day is lead generation - finding my next buyer and seller. There isn't a waiting line of millionaire buyers and sellers calling me to sell or buy a home from me.
- My goal every month is to find 400 buyers looking to buy or sell a home within the next year and a half. What many Realtors don't know is that the average buyer today takes six months to a year and a half when they first start looking online at homes.
There is so much information online so it makes perfect sense that buyers would start looking much earlier than in the past. If real estate agents don't show their value and/or pressure the buyer to do business now, they will lose that potential client forever. By the way, I average finding 325 buyers per month.
- The beautiful drone videos and photos you see online cost a lot! I'm grateful to be complimented all the time about my marketing. The videos I share online range in price from just under a thousand dollars to several thousand dollars for a video that is less than two minutes! Add the cost of photos, 3D VR (virtual reality) Tours, additional marketing and advertising, and before you know it, I'm up to several thousand dollars in investment before knowing if I will ever get paid.
For those of you that don't sell real estate for a living, how many of you would invest several thousand dollars at your job not knowing if you will ever get paid for working?
- To sell luxury real estate you need to be well connected domestically and globally to the best agents and wealthy clients. If you are not, you have a much lower chance of getting that multi-million dollar home sold. I work on growing those relationships daily. I'm fortunate that I know the best agents in every single state in the US and in 57 countries. These are personal friends, not someone that just happens to be that I connected with on social media.
- Because most buyers and sellers of luxury real estate don't live in South Florida, they are referred by agents from other areas. So, many times referral fees up to 50% are given to the referring agent.
There are many other things that take place in my world of selling luxury real estate for a living. If you are interested in hearing more or would like to start a job in this industry, contact me. If you would rather leave all the hard work and investment to me without risking anything, click below.
This has saved many people thousands upon thousands of dollars with their purchase because...