Luxury Real Estate is More Than a Price Tag
When you think about luxury real estate, you probably think of sprawling, glass-encased estates in the Hollywood Hills, á la Million Dollar Listing or Selling Sunset. You think of designer-laden agents flitting around open houses with champagne in-hand while schmoozing the ultra-wealthy. This is, of course, not always the case. Luxury real estate is generally defined as having a minimum $1 million price tag, prime location, expensive finishes, and amenities you wouldn’t find in a traditional residential property. These homes exist in most communities, not just destination cities.
We sat down with KW’s Head of Luxury, Caroline Huo, to get a peek behind the bespoke velvet curtain. Here’s what she had to say:
KellerINK: Ok, Caroline. Tell us what luxury real estate means to you. How do you personally define it?
Caroline Huo: “It’s a question we get often. Luxury real estate transcends price points, it’s in the experience you deliver. It’s anticipating your client’s needs before they even ask for it. It’s solving the problem before they even know they have it. It has to be easy, fast, beautifully finished with surprises and delights along the way, curated and personalized for them. You want your client to think they are your only client, so that’s really what luxury is all about.”
KI: When you have a brand-new agent on your team, what is the philosophy you want to impart to them from day one?
CH: “To be a luxury agent, you have to show up as a luxury agent. You have to understand what the luxury consumer wants, expects, and demands. You have to understand their pain points. You need to know the market data, because a lot of high-net-worth clients are very well informed. You also need to be extremely well connected and build that team for your client. For example, they may need a security detail so you should have those connections and provide it before they even ask. Every interaction must be a value add, it must be purposeful and efficient. There’s the emotional journey and then there’s the transactional journey — you have to show up for both.”
KI: So, you’re in the business of solving problems for your clients, but the ultimate goal is to not have any problems. What does that look like behind-the-scenes?
CH: “The easier it is for the client, the more work is being done on the back end to make it seem that way. For example, we send weekly updates to our clients on the progress of their transaction. To make that happen, there are probably twenty conversations being had at once to make sure what we’re presenting is going to be accurate and can be read at a glance. The level of execution needs to be extremely precise, there is no room for error.”
KI: You mentioned building a team for your client. Can you expand on that?
CH: “Maybe the client doesn’t have the vision. Maybe she’s only in town for two days and has to make a decision quickly. Maybe the property is perfect, but she just can’t see it. We will have a whole team of architects, designers, and contractors at the showing ready to help her envision it. We will provide the experts to streamline the decision-making process for her.”
KI: How do you build a database of high-net-worth individuals?
CH: “You have to go where they are, and often you don’t have access to them. So, what’s best is to build a network of professionals that do have access. It’s the people sitting at the table with them when they are making decisions: the attorneys, the wealth advisors, the CPAs. Who do you need to know to be invited to that table? You can’t just ask for the business; you have to provide value and information, so they begin to trust you and introduce you to their clients. But referrals don’t always come from where you expect. I had a client once who could only meet on Thursdays at 10 a.m., which also happened to be when his housekeeper was there. I would bring him breakfast and started bringing her [the housekeeper] breakfast, too. About a year later she reached out and said one of her other clients wanted to sell their house. You just never know, so always pay attention!”
KI: What a great story! Speaking of, what’s your favorite story from your career in real estate?
CH: “I have so many, and I’ve told this one before, but it is one of my favorites. Knowing who you are and who you are not is important because as agents, we will chase anything right? My coach [Mo Anderson] made this clear when she said that it’s not just how you present yourself outwardly to the public, but this is what you should expect from others as well. This was an AHA moment for me because it was about being a match with the client, about working together. So, when we were referred to a $20 million client with nine attorneys involved on an incredible estate, I had to make a decision based on how the client was treating my team. He was very demanding, which is often the case with these types of clients, but it was not a good situation. After a few conversations with him, I decided to fire him. I sent an email and I resigned. My team was supportive of this decision and that was that. But then he came back and apologized and has been one of the best clients; he now tells me he doesn’t make a real estate decision without consulting me first. You have to know your worth because these clients can run you around. You have to value who you are, first.”
KI: Final thoughts to share?
CH: “A lot of high-net-worth clients are used to having ‘yes’ people around them so when someone says, ‘no, that’s not going to work for me,’ they will actually stop and listen and probably respect you more in the end.”
You might still be wondering if Caroline’s life is like an episode of Million Dollar Listing and the answer is no. Because we did ask. She says it has way less drama because if you’re doing it right, those problems don’t ever come up. Sounds like a life of luxury to us.
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