As a luxury real estate professional, how often do you nurture the relationships you have with other agents in your market?
Better yet, how often do you seek out relationships with those other local agents to grow your sphere of influence?
When data company ATTOM interviewed 400 real estate agents back in 2016, 34% of their actual closed business came from their network, while digital marketing, walk-ins and open houses trailed behind that statistic by nearly half.
So while it’s true luxury real estate is a competitive field, networking with other local luxury real estate professionals is one of the best ways to increase your success at the closing table.
In fact, according to The Institute of Luxury Home Marketing (The Institute) instructor and luxury real estate expert Kofi Nartey, the goal as it applies to agent relationship is what he calls “co-opetition”—not competition. As he so eloquently puts it, “It’s not about winning or losing, it’s about the desired outcome.”
1. Networking with local luxury real estate agents can boost your clients’ bids. Networking with other local luxury real estate agents is always a smart idea, but especially in a red-hot seller’s market like the one we’re in now. When there are multiple offers on the line, having great rapport with the listing agent can put your client’s bid ahead of other potential buyers.
Best of all, a smooth transaction for your client despite multiple bids can mean a glowing review, repeat business and referrals for you after you close.
2. Building your luxury real estate agent network can lead to more listings.
Too often, luxury real estate professionals forget to network with each other when they have or need a listing. The reality is, building solid relationships with other local luxury real estate agents accomplishes just as much lead generation as marketing directly to potential buyers and sellers, but can require a lot less work.
To make it even easier, going to networking events specifically for luxury real estate professionals, like The Institute’s Luxury Live events or joining The Institute Network, can instantly connect you to other luxury real estate agents in your market.
In addition to winning referred listings, another great advantage of expanding your network of colleagues is that it also opens you up to opportunities to co-list.
Co-listing is one of the easiest ways for new luxury real estate professionals to break into the luxury market, and it’s also a smart way for seasoned luxury real estate professionals to break into higher price points or new markets.
Even if you work with buyers, networking with other local luxury real estate professionals is great for being the first to hear about available listings before they hit the MLS.
3. Networking with other luxury real estate agents helps your reputation.
In an industry that’s built on relationships, your reputation is everything.
You never know when you might want to transition to a new brokerage, build your team or need a favor. At the very least, making an effort to stay in good standing with local agents can help you when you least expect it.
The bottom line is, any luxury real estate agent’s goal is to create smooth transactions for their clients, and networking with other agents is a key stepping stone to reach that goal. In other words, building trust within your community—whether it’s with prospective clients or other agents—is always a good thing.
Ready to network with other luxury real estate professionals?
The Institute’s in-person Luxury Live events are back and—for the first time ever—we’ve introduced a Member Happy Hour to give you even more time to network with other luxury real estate professionals (or aspiring luxury real estate professionals).
The curriculum for these exciting two-day events is based on our proven Seven-Step Luxury Marketing Blueprint to help you break into luxury real estate or reach the next level in your luxury real estate career.
To learn more and see when Luxury Live is coming to your city, click here.
Diane Hartley is president of The Institute for Luxury Home Marketing, an independent authority in training and designation for real estate agents working in the luxury residential market. Hartley brings her passion for luxury marketing and more than 20 years of experience growing and leading businesses to her role as president of The Institute. For more information, please visit www.luxuryhomemarketing.com.