The Right Way to Get Started in Luxury Real Estate
We’re continuing our discussion around a question I get asked repeatedly: how to break into a luxury market especially one where there’s a strong, dominant competitor. We talked last week about the wrong way to break in. Let’s start the discussion this week with the first step in a better way to break in.
First of all, SWET that dominant player or competitor. You’ve probably heard of a SWOT analysis but we’re talking SWET:
- Identify the leader in the marketplace you’re trying to break into and identify their Strengths? What do they do well? How long have they have been at it? What’s their track record? What are they known for? What’s their claim to fame, so to speak?
- Next we want to look at their Weaknesses – what could they do better? Where do they fall down? What do they not do as good as they could do? what can you do better? You can find the answers to these questions by interviewing people in your marketplace; both agents and consumers.
- List of Everything they do in the conduct of their business. Do they go on their own listing presentations? Do they show their own properties? Do they negotiate their own deals? Do they do their own marketing? What exactly do they do? I’ve talked to some agents who tell me that the agent they’re competing with is great at listing and buyer presentations, but that the buyer or seller never sees them again. And while that works for them, it could be an in-road for you if you can turn that around. That brings us to step number four: Turn it around.
- What can you Turn around do different, better and opposite of what the leader is doing. This can give you a beachhead in your luxury real estate market? For example, if the leader never shows their own property, you could make that part of presentation that you are always personally involved with every showing that takes place of their property. I heard about one leader that won’t climb stairs for whatever reason. They sit down and wait for the buyer to look on their own. Your proposition to the seller can be how you personally demonstrate each and every feature of the property.
There’s no right or wrong here. You just need to know what their strengths are, what their weaknesses are and what you can do that’s opposite and better to turn it around to give yourself an edge when you’re competing with a market leader in your location.
Remember, and this is important, luxury does not compare itself to luxury. NEVER denigrate or criticize a competitor. As I have said before, you have never heard an ad where Rolls Royce compares itself to Bentley. Use the information gained in your SWET analysis to fine tune your approach and then just sell your approach and the value it brings.
We’re going to talk in more detail about additional steps to breaking in over the coming weeks. In the meantime, keep those questions coming. Send me emails and don’t forget to schedule your 20-minute phone consultation if you bought the book.
Until then, make it a great week.
