Everyone knows the three rules in real estate:
So, many agents have concluded that the more valuable a property is the more desirable of a listing it is.
Is this horse sense or horse fertilizer?
Let’s take a look at the pros and cons of focusing on million dollar listings:
#1 – ONE BIG CHECK
If you list a $1,000,000 property and it sales–even if you split the commission with the buyers agent you’re still looking at about a 3% commission.
That’s 30 grand!
That’s more than what most people earn working all year and you could earn that in one sale, WOW.
#2 – LESS IS MORE
Actors who earn the most money per movie like Brad Pitt don’t have to make a film every year.
They can just focus on one major role every year or so and their income continues to climb.
The same point applies to agents. You could focus on selling 20 houses a year or 2.
At the end of the day if you’re successful you could end up with the same amount earned in commissions so why do 10 times the work?
#3 – THE INTERNET
The great equalizer.
With the right type of website you can attract high end clients to your listings saving time and money.
High end clients expect the highest level of service and when they visit your website and are impressed you’ll be that much closer to the closing table.
#1 – TAKES TOO LONG
The more valuable a property the fewer the transactions that occur in any area.
Therefore be careful, you may be waiting for a year or much longer for a million dollar listing to actually close.
#2 – EGO
Millionaires are the most picky, persnickety, hard to please people you’ll ever meet in your life.
Any little thing could make them now completely hate the entire property or YOU or both.
They have big money which is good but it can also be bad because they can afford to be difficult, stall deals, and waste time–while honestly you can’t.
Also, if you’re the casual type that’s more laid back they’ll be offended when you’re not all dressed up like the rest of their “servants” so you’ll need to upgrade your wardrobe pronto. Suits yes, golf shorts NO