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:

Published: January 14, 2000

Use of this article without permission is a violation of federal copyright laws.

Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.