- Develop networks and relationships with referral partners who work with high-end clientele.
- Offer different packages of services, and don’t be afraid to charge more than other agents.
- Know your metrics -- both local housing and economic stats and your own sales stats.
What does it take to sell multimillion dollar luxury real estate and work with luxury clients such as pro athletes, entrepreneurs and executives?
Chicagoland top producer Michael LaFido joins us to share his tactics and techniques including taking your first luxury listing, creating lifestyle marketing to attract luxury buyers and attracting high-end clients through networking and referrals.
LaFido is a top-producing Realtor and marketing specialist with Conlon Christie’s International Real Estate in Chicago. He is the author of “Marketing Luxury — Sell Your Luxury Home In Any Market” and founder of Marketing Luxury Group, which helps agents and homeowners sell their luxury homes through lifestyle marketing strategies.
Real Estate Uncensored
Hosts Greg McDaniel and Matt Johnson with Michael LaFido, Conlon Christie’s International
“Many luxury sellers, they have a lot of money, they’re smarter, they’re business owner, CEO-types. They’re going to do their due diligence and vet you out. They’re going to ask tough questions.” – Michael LaFido
We started with how the economic and political climate is affecting luxury home sales in Chicago and how LaFido listed the eighth highest-priced home in the state (ranking just behind Michael Jordan’s home).
He also shared how estate sales can be an excellent lead source and how he developed a referral relationship with an estate sale company. He outlined the different motivations he sees with luxury sellers, which include more downsizing and second-home activity and what he’s seeing with affluent overseas buyers.
With luxury homes taking so long to sell, we talked about how LaFido pushes for one-year listings and sets seller expectations plus some of his best sources of client leads and referrals.
He explained that to go head-to-head with established luxury agents, you must have a track record of success and the ability to demonstrate superior marketing to differentiate yourself.
LaFido also shared how creating lifestyle videos for his listings led to his consulting company, which helps agents and homeowners market their luxury listings.
But where do you start if you’ve never sold a luxury home? LaFido says that you must be in your database and sphere of influence, demonstrate expertise and connect high-level people to position yourself as a leading source of knowledge.
For example, LaFido created a networking and referral group with companies and services that deal with affluent homeowners.
Commission and luxury listing packages
Commission is always an interesting subject in the luxury market, and McDaniel pointed out that the typical commission in his area is 5 percent.
LaFido challenged McDaniel that this might be a limiting belief and explained how he offers multiple listing service packages, even 10 percent packages, which add more and more value.
LaFido shared a bit of his scripting, including how he explains to sellers right up front that he probably charges more than any other agent they’ll meet. It’s an approach inspired by Dan Kennedy, the direct response marketing guru, whom LaFido has followed for years. Check out the book “No B.S. Marketing to the Affluent” for more details on this approach.
We finished up by discussing how to use the DiSC profile in your listing consultations, how to adjust your approach to different client types, how to deal with spouses who are radically different and why he tracks the listings he didn’t take to see how they performed.
Attracting affluent clients
LaFido’s approach — mixing direct-response marketing with a deep knowledge of local stats and metrics — is very effective for working with high-end clientele. So whether you’re looking to work with pro athletes and executives to sell the most exclusive properties in the world or you simply want to raise your average price point, there are some great tactics and strategies in this interview to implement in your business right away.
Connect with LaFido: (630) 674-3488 and check out his DiSC profile