Over the next several weeks, I’ll be talking about steps to take that will help you break into the Luxury Real Estate market.
If you missed last week’s topic on the importance of relationships in breaking into Luxury Real Estate, click here.
This week we’ll be discussing a crucial step when breaking into Luxury Real Estate: market mapping.
How to Market Map
If you want to break into a certain market, you want to first identify the various dynamics and components of that market. You achieve this by asking yourself a number of questions:
- Where is it located?
- What does it consist of?
- What are the boundaries?
Once you have asked yourself those questions, start the mapping process. Place pins that represent houses with a certain valuation and identify:
- Who was the buyer?
- Who was the seller?
- What did they do?
- What did they pay?
- How much did it sell per square foot?
- What was the percentage of their property tax assessment?
What to Identify
Furthermore, when mapping a market, you also want to consider the key influencers and demographics:
- Who are the prominent builders?
- Who are the prominent architects?
- What’s the socioeconomic status of the people living there?
For example, while working with an agent in Kennebunkport, Maine, I emphasized the importance of visual resources. I told him to go to the town hall at Kennebunkport, get assessor’s maps, and piece them all together. It showed every single individual property on the map and more—who the owner was, when they bought the property, and how much they paid. I then told him to conduct more research by making phone calls and searching them online to find out as much information as he could.
For example, in my market, 85% of the buyers are from the financial services business. This is important information to have as you become an expert in that market. Indeed, the most important aspects of being an expert in a market are understanding price, value, and key metrics:
- Price per square foot
- Price per front foot
- Days on market
Do Your Research
Ultimately, what all this means is research.To break into Luxury Real Estate, you need to do your research. You also need to immerse yourself in that market and become an expert by identifying and mapping your market. Click To Tweet
Until next time, make it a great week.