Beware of traps: The false wealth in real estate

Rudolphe ABENRudolphe ABEN - NEXTIMMO.LU

Rudolphe ABEN

Beware of traps: The false wealth in real estate

The real estate sector is vast and diverse, attracting a multitude of clients with varied profiles. Among them, some stand out for their appearance of great wealth. These "false wealthy," as they are often called, present a unique challenge for real estate professionals. They display an opulent lifestyle, promise significant purchases, and seem ready to invest in luxury properties. However, their financial reality may be quite different from what they portray.

Who are these clients?

These individuals often appear with obvious signs of wealth: luxury cars, branded watches, and talk of significant purchasing ambitions. They may request to see the most prestigious properties, insisting on luxury and exclusivity criteria. Yet, behind this display of wealth, there may sometimes be a much lesser financial capacity than advertised.

Why do they pose a problem?

1. Time Loss: Real estate professionals invest hours organizing viewings and negotiating offers that ultimately do not materialize.

2. Bad Reputation: Repeated transaction failures, due to some clients' lack of financial seriousness, can tarnish the reputation of real estate agents.

3. Missed Opportunities: Focusing energy on unqualified prospects can lead to neglecting genuine buyers, ready and able to invest.

How to manage them?

At Nextimmo, we have developed a proactive strategy to identify and manage these cases:

• Financial Means Verification: A crucial step is prequalifying clients through a credit broker. This approach ensures the financial soundness of potential buyers before committing further.

• Professionalism: It is essential to maintain a professional approach, without being influenced by appearances.

• Clear Communication: Openly expressing expectations and procedures can help avoid misunderstandings and quickly discern clients' true intentions.

• Network Utilization: The support of financial experts, notaries, and other professionals can provide valuable assistance in assessing clients' credibility.

In the real estate world, the ability to distinguish genuine buyers from impostors is an invaluable skill. At Nextimmo, our rigorous approach to prequalification ensures that we devote our time and resources to serious clients, thereby optimizing our chances of success while preserving our reputation. The quality of our clients is the key to our success, allowing us to focus on completing successful real estate transactions for all parties involved.