Many cities and towns in Texas are currently going through a boom in luxury real estate. With the price of real estate going up all over the country, there are many opportunities for Texas real estate agents to take advantage of this expansion of the luxury real estate market. What does this market currently look like? How does a real estate agent break into it? Let's have a look.
The Texas Luxury Real Estate Market: From Austin to San Antonio
Texas' luxury real estate market begins with some of its biggest cities: Austin, San Antonio, and Houston. In Austin, real estate professionals have seen an increase of 59% in real estate prices in the past five years. This means that homes hovering around $1 million are now common, and the "luxury" market now sees listings at $2 million, $2.5 million, and even higher. Ordinary homes are increasingly sold at "luxury" prices.
In San Antonio, luxury home builders and brokers are seeing growing interest from out-of-town buyers. People from California, New York, and Mexico are buying up luxury properties in the nicest neighborhoods of the city. Local experts call it a seller's market, and it's the perfect situation for an enterprising real estate agent to break into the city.
Houston is also seeing a real estate boom, although current numbers are not as high as July 2020. The luxury market has such high demand that it's created a "shadow market," a situation where houses are sold before they are even listed. This makes networking with your fellow real estate agents an essential part of your success.
Although the big cities attract a lot of luxury real estate buyers, don't count out some of the smaller areas in the state. Corpus Christi, Fort Worth, Marfa, and San Marcos also have a lot to offer to a luxury real estate agent. Because these areas are smaller, the competition is less steep, which means an easier time finding clients and making sales.
How to Break Into Texas' Luxury Real Estate Market
Breaking into the luxury real estate market is harder than it seems. There are many obstacles to entry, including reputation, networking, and local knowledge. But with these tips, any new real estate agent has a shot at the big leagues.
1. Co-list and Co-market
Luxury real estate listings need a lot of work. That's why a lot of real estate professionals prefer to co-list luxury homes. If you are a new real estate agent, co-listing allows you to benefit from the reputation of your colleague and reduces your workload.
Once you're established, co-listing also lets you expand your market. Collaborate with an experienced agent in a new town or state, and see your reputation (and referrals) increase.
2. Network with Your Preferred Clientele
Of course, it's going to be difficult to sell luxury real estate if you don't know anyone who wants to sell or buy luxury homes. This is why you should participate in networking activities that put you in touch with the people who do. A good place to begin is your local Chamber of Commerce and other business networking events.
Ask yourself: What do people expect from a luxury real estate agent? Discretion, efficiency, and flexibility come to mind. Make sure to show these qualities while networking.
3. Provide an Experience
A big part of selling a home is selling the experience of living there. When developing your sales techniques, think about you can offer something more than just a visit. Perhaps tea on the patio? The client's favorite music playing through the home's integrated sound system? A light lunch, catered by a local chef?
Luxury real estate is filled with potential for any motivated real estate agent. They require a little extra work but are worth it down the line. All you need is a real estate license and a little entrepreneurial thinking!