Brokering luxury home sales can be very lucrative, but it’s also risky. With fewer higher-end homes on the market, you can’t afford to let too many sales slip by.
Every single sale counts. There are fewer opportunities to earn a commission in the luxury market, so you need to do everything you can to get more business. This is why you need an effective marketing strategy, including carefully targeted Facebook ads.
You can do better than targeting by zip code. In this post, I’ll show how you can narrow your targeting and get your ad in front of the right buyers.
Your first step is to modify the settings on your ad set so that it reaches the people who can afford a luxury home.
I’ll show you how to target by home value and by net worth. Facebook’s data is impressive, but it’s also incomplete. They won’t have each of these figures for every single user. By including both, your ad will reach users who fit either of these categories, which means getting your name in front of more wealthy prospects.
One way to find people who might want to buy a luxury home is to target people who already live in one.
To do this, go to the Detailed Targeting section of your Ad Set. Click on the Browse button under the search bar and select: Demographics > Home > Home Type > Home Value
Next, select the values that match the kind of buyer you’re hoping to reach. You can start with those in the seven figures. Click on the box next to $1,000,000 - $1,999,999 and the one next to Over $2,000,000.
Depending on your market, you might have better results by going lower than this. If you operate out of Birmingham, Alabama, for instance, some luxury homes might fall in the high-six-figure range. In these markets, you can also include users with a home value of $750,000 - $999,999.
Facebook also lets you target based on users’ finances.
To find people who can afford higher end homes, click on the Browse button in the Detailed Targeting section of your Ad Set. Select Demographics, then Financial.
Here you’ll be given two options. You can target users based on their income or target them based on their net worth. I recommend going with net worth, since it’s a better measure of a user’s financial state and a better indicator of the type of home they can afford.
Under Net Worth, you’ll find a list of figures.
You can start by selecting $1,000,000 - $2,000,000 and then decide whether you also want to work your down a bit to $750,000 - $1,000,000 or even $500,000 - $750,000. Again, it depends on the price of luxury homes in your area.
One more thing you can do before moving on to the next step is narrow the age of the buyers you’re targeting.
As a default, the range will be set at 18 to 65+ to target all adults. But the homes you’re interested in helping people buy and sell aren’t starter homes, so it makes sense to aim for a slightly older audience.
Setting the age range to 35 to 65+ or 40 to 65+ will help you hit on the demographic that is more likely to invest in expensive, high-caliber homes.
Now your ad will be targeted to Facebook users who either live in expensive homes or have a high net worth. But if you’ve read The Millionaire Next Door, you know that being wealthy doesn’t always mean living a lavish lifestyle. So, your next step is to narrow your search so that your ad reaches people who value luxury and will likely want to buy a home that reflects this.
Once you’ve selected for Home Value and Net Worth, click on Narrow Audience underneath your Detailed Targeting options.
Here, my advice is a little bit looser. Basically, you want to find behaviors and interests that signal a taste for the finer things in life. Type some relevant keywords into the search bar, like “Luxury,” “High-End, or “Premium,” and select some of the options that come up.
You could, for instance, select users who have a Premium Credit Card, who have an interest in Luxury Apparel, or who have an interesting in High-End Retail.
A high-end home usually has a car to match it, so you can also include users who drive Audis, Porsches, and other luxury brands. Just enter the name in the search bar and select it from the list.
Luxury home sales are huge transactions, so buyers and sellers want to deal with an agent they can trust. By targeting your Facebook ads in the ways I’ve shown you in this post, you can build familiarity and trust by getting your face and name in front of them early and often.