Many luxury real estate companies and agents claim that they are experts in their marketplace, the leading local authority. However, when you review the scope of their territory (including the number of homes in their ‘farm”) it becomes clear that they are just glib. In actuality they possess superficial market knowledge at best. They want to give the impression that they know everything, even if the market place is enormous.
In our commercial real estate practice, we specialized in a particular target area with specific client profiles. On occasion the same developers or owners had properties in what is known as the “Valley” just north of Los Angeles. They would ask us to handle their Valley listings as well. We turned those additional opportunities down because we did not have the depth of market knowledge to properly market those properties based on our high standards of service. We were happy to bring potential tenants or buyers to their properties, but not handle the listing.
In one instance a friend of ours who owned several restaurants wanted to open another restaurant. He insisted that we work with him, even though we just knew the basics about this real estate niche. But, he offered to teach us.
When we found a space that he liked, we spent a lot of time with his restaurant architects learning the specifics. We gained an extensive knowledge base of restaurant building costs and the massive amount of regulations imposed on restaurant owners by the city, state, and fire department. This expertise became a niche, and that niche became one of our profit centers.
You can get away with glibness only so long before a sophisticated buyer or seller sees right through you. Being glib may initially result in a smattering of listings and sales in some marketplaces. But, if your goal is to achieve longevity in this business you need to be a genuine expert.
Written by Ron & Alexandra Seigel-
ABOUT: Napa Consultants, International is the leader in brand strategy for the luxury real estate industry. They work exclusively with professionals who are passionate about gaining or sustaining market leadership. With an expertise in personal branding, company branding, luxury real estate website design and social media marketing they help their clients become the breakaway brand in their marketplace.