Luxury brokers building databases of potential buyers and sellers

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With inventory down and prices up in many luxury markets around the U.S., brokers and agents are developing new strategies to win listings, including the use of sophisticated databases of high-net-worth individuals to keep track of potential buyers and sellers.

A 2-year-old Beverly Hills-based firm, the Agency, spends hundreds of thousands of dollars each year to maintain a database of wealthy individuals, built in part off of credit card data, to target potential clients.

Another Beverly Hills firm, Hilton & Hyland, uses its affiliation with Christie’s luxury auction house and its database to secure luxury listings.

“My ability to reach out to the art world, and some of the wealthiest patrons in it, definitely differentiates me from other brokers,” Jeff Hyland, president and co-founder of Hilton & Hyland, told the Wall Street Journal.

Referrals, flashy marketing and invitation-only, cocktail open house parties also win high-end listings, brokers and agents told the Journal.

Source: Wall Street Journal