Over the past several weeks, I’ve been sharing a conversation I had with Jere Metcalf. We discussed luxury markets, negotiating strategies, competing with veteran agents, starting your own real estate company, and getting your first luxury listing.
To conclude, Jere and I will be examining the most impactful tool in my Luxury Real Estate toolbox: my pricing expertise.
Be An Expert
People in the high-end want to deal with experts. They want to deal with a medical expert when they have a sore elbow. They want to deal with a tax expert when they have a tax situation. They want to deal with an accounting expert when they face a financial issue. Thus, when they have a real estate issue, they want to deal with a real estate expert. And, more importantly, the goal is to become their trusted real estate advisor. The way to achieve that is by helping them with their value analysis every single year.
Show Uncommon Value
Every single individual that a wealthy person interacts with, whether it’s their CPA, attorney, banker, or investment advisor, meets with their client once a year to give them an update on their situation. But...this is not a common practice in real estate.Wealthy people are obsessed with property taxes and estate taxes. Click To Tweet
One way you can serve your clients is by saving them money in their estate taxes.
The way you minimize your estate tax is that you put your property into a trust or an LLC. Then, you transfer a certain amount of assets to the beneficiaries and, after a certain amount of time, the properties are totally out of your estate and is owned by the beneficiaries. You then can rent it back from the trust.
Indeed, to be able to accomplish that process, you need a yearly evaluation from an expert. It doesn’t have to be an appraisal, but when you can bring that kind of value to wealthy people or to their gatekeepers – such as their lawyers, trust officers, investment advisors, or CPAs – you’re establishing yourself as a trusted and credible expert.
Until next time, make it a great week.