Cultivating High Networth Real Estate Clients
HNI Real Estate Agents in Mumbai
We all know that the real estate business is one that is relationship-based. And this more so in the luxury and high-end spectrum of the market. High Net worth folks like to mix with others who are like themselves. They like to deal with people they personally know or are known by someone they know. It is a simple fact of human nature or even the animal kingdom – birds of a feather flock together!
Let us look at the ways that a traditional real estate agent in Mumbai operated in the past and continue to do so in today’s world. Typically agents carve out geographic locations within a city in order to build their businesses. There are Andheri West real estate agents, there are Bandra real estate agents and there are South Mumbai real estate agents and each of them know their areas well. But then reaching out locally and being hyper-local does not really work in high end markets. The goal of every high end real estate agent is to be perceived as a expert. But advertising in the local editions of the Times of India or sponsoring the local Ganesh Pandal is not really the type of expertise that would impress a millionaire!
Having said that, if you are not an ace party animal or have not been born into a rich and well-connected family, cultivating HNI clients can prove to be difficult but one can always find a way to rise above the challenges. Not-yet connected agents can also ‘prospect’ for high-end clients and buy and sell high end properties. Let us see how an agent can reach HNI’s effectively:
Being Around Like-Minded People
I always like to be around like-minded people. Properties in upmarket areas of Mumbai such as Napean Sea Road, Altamount Road, Cuffe Parade, Juhu and Bandra tend to be more expensive than other parts of Mumbai. It is ‘rare’ for buyers to simply ‘drop in’ and start looking for real estate without any sort of connection. In most cases, a ‘human connection’ such as a friend, relative or work associate who lives in that area – can be the draw. At Gupta & Sen, we have implemented a system of value-added emails that are sent to clients from every geographic location in Mumbai. Let us look at the following list of topics that are usually covered in every communication.
- Previous year-in-review
- Prognostications for the upcoming financial year
- Interpretations for the real estate market of economic decisions made by the Government
- Tax assessment data and updates
- Exceptional sales and listings
- Press clips in which Gupta & Sen is featured
- Property tax update
Sending out such emailers and ‘newsletters’ with market wrap-ups and statistics have been very successful in keeping our firm in ‘top of mind’ recall amongst owners of luxury real estate and high net worth individuals. Also because luxury property owners are obsessed with their taxes, any information that one can send with this regard is of great value to our clients.
Making Their Priorities Your Priorities
Ideally someone in the business of selling luxury real estate should want to make the client’s spheres their own spheres. This is because the decision to buy or sell high end real estate is often an impulsive decision. There are instances I know of clients who have wanted to move out of a certain area because of the ‘deafening noise’ created by street processions during the local Ganpati festivals and band baajaas. A high end owner of a luxury real estate apartment in Prabhadevi will wake up in the morning, gaze out of his window and wonder what the view of the sea would look like from another angle or location. The same afternoon, the call goes out and the search begins for a home that is often just two km away from the client’s current residence! There are also times when a high networth property owner wakes up on a Sunday morning and cant think of anything else that needs to be redone at his home – the pools, the gardens, the kitchens etc. have all been redone and are perfect. So he starts looking for another property!
New projects keep many investors and rich folks active, feeling useful and even entertained! The decision to put a home on the market and buy another one can often be made within an hour. So the current property goes on the market and the search for a new challenge begins! This practise of playing ‘musical house’ amongst rich folks is why it is critical to be ‘top of mind’ with high net worth owners of real estate in any area. So that when the urge arrives, it is my mobile number which is search for on their phones!
Innovative, Impressive & Expensive
Many years ago, my boss Mr. Amit Sen had created what I am sure was at that time the first lush hardcover brochure for a single estate in Mumbai. It was a large undertaking with many hours of photography, layouts and art direction. A firm was then appointed to bind the book and deliver a quantity of 1000 copies. The cover of the brochure had a die cast indentation into which a colour pic of the residence was applied. This impressive brochure was very expensive to produce. This was before the days of email and the cost of mailing these brochures had not been considered which put the project cost over the top. But this was overcome by the bright idea to use two smart college students who were sent with a car and a driver to deliver the hard cover brochures to high networth property owners in the area. Well, needless to say, we accomplished our distribution goals at a fraction of the cost and made an even bigger impression in the long run.
A gardener knows very well that a successful crop emerges after making a plan and consistent execution over a period of time. A master gardener will never till, plant, water and feed and then expect that a beautiful floral display will happen over a weekend. The luxury real estate agent similarly needs to have a plan and execute it well over a period of time. Results happen gradually just like it does for all other professions.
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