Matching your client’s home buying goals and preferences with the right properties at the right price is essential to your success in the luxury real estate market. You should use targeted tools to qualify potential buyers by separating passive “watchers” from serious prospects to provide a more targeted marketing approach that will (hopefully) result in associating you with more new customers.
What types of tools are available to help you better qualify luxury home buyers? Institute members have access to several tools in our database that can help verify the financial capabilities of potential clients. Read on to learn about two proprietary tools The Institute offers its members and an alternative option you can use right away.
Institute Online Wealth Search
The Institute’s Online Wealth Lookup (OWL) tool provides a simplified interface to WealthEngine’s FindWealth 8™ platform. It offers a simple, quick and understandable financial overview of prospects and provides an invaluable resource to help you start the qualification process. As a powerful tool offered only to members, OWL can provide a quick view of your prospect’s financial position, help you assess credibility, and gain leverage for negotiations. These data points could help you build credibility and rapport with your customers while improving your targeted marketing strategy. As a result, you will potentially be in a better position to expand your business into luxury real estate.
A powerful prospecting tool, Wealth Engine (WE) Search pulls data from 60 unique sources to provide individual wealth information for approximately 122 million households and 300 million people. Whether you choose to use it as a prospecting tool to win new business or as a way to gain insight into the goals, motivations, and financial capabilities of existing customers, it has become the “gold standard” for over 4,000 modern businesses. and non-profit organizations. .
Wealth Engine provides invaluable access to data on income and assets, real estate, stocks, charitable contributions, and general net worth. Profiles offer individual wealth ratings and comparative scores, and select personal and business contact information.
Seek verification from a financial institution
A third significant way to assess financial strength is to confirm and verify the information a client provides with a financial institution rather than a certified public accountant.
For high-end transactions, you’ll want to obtain a Proof of Funds (POF) document from a reputable financial institution. The POF document is similar to a mortgage prequalification letter in some ways. You must confirm the financial stability and capabilities of the buyer rather than the ability to repay a loan.
A POF document will generally include the following:
- Bank name and address
- An official bank statement, printed at a branch or online statement
- Total funds balance in the account
- Balance of funds in other accounts or associated accounts
- Copy of a bank statement online
The documentation must be dated and signed by a bank employee or authorized notary. And, if that documentation comes from multiple sources, you’ll want to confirm that the funds are liquid and available to the buyer on the date the real estate transaction is scheduled to close.
These three tools aren’t the only resources for building your business, but they can be among the most effective and valuable tools in your arsenal.
Dealing with luxury home buyers can be a demanding yet rewarding experience. As a member of The Institute for Luxury Home Marketing, you’ll take advantage of member benefits and unique resources to enhance your professional experience. Contact our team to learn more about enhancing your real estate career.
Diana Hartley is the president of the Luxury Home Marketing Institute, a premier independent authority on the training and appointment of real estate agents working in the upper-tier residential market. Hartley brings her passion for luxury marketing and more than 20 years of experience growing and leading companies to her role as president of the Institute.