If there was ever a time to start building a career in high dollar, luxury real estate, it is now. So often, new and part-time agents get started in the business by marketing the smaller homes of relatives and friends and building from their contact base of neighbors, church and school that they never have the opportunity to grow into the larger home market.

Farming the familiar is a time-proven strategy, but what if that keeps you forever in the starter home category when you want to leapfrog to the big leagues - luxury homes? After all, don't they work the same amount of hours you do, and for much bigger commissions?

According to Joe Babajian, top producer for Fred Sands Realtors, that isn't necessarily the case. Although Babajian is situated in an area with some of the most expensive homes in California, Beverly Hills, he says that representing high-end homebuyers and sellers doesn't just happen. "It is a specialized market that you have to prepare for by demonstrating the utmost in professionalism," explains Babajian. "These are people who are used to working through business managers and attorneys. Their level of sophistication is extremely high. They expect extraordinary service and they get it."

But for those who aren't deterred, it is definitely a growing market. The number of millionaires throughout the United States has increased by approximately 7.5%.

Home prices have been rising steadily. According to a report on BUILDER online, the number of single-family houses selling for $250,000 or more is claiming a bigger share of the market. The Baby Boomer is driving the move-up market, with 30 million of these big spenders entering their 50s by the year 2000. The National Association of Home Builders (NAHB) considers the ages of 45 to 64 as the peak custom home-buying years. By 2010, the number will be about 78 million. The economy in general has fostered an approximate 20 percent increase in luxury consumption from cars to homes.

And they are being supported in their trade-up efforts by jumbo financing and refinancing to make home improvements. Commonwealth Bancorp just announced that it will sponsor fix-up loans up to $400,000 as part of their Jumbo Residential Mortgage program.

According to Prudential Real Estate, the number of affluent households is estimated to approach 20 million by 2010, up from 1.8 million in 1996. The company says that more than 25% of its corporate transferees fall into the affluent category.

Also See: