Texas Luxury Real Estate: A Guide to Becoming An Agent

By Ciprian Morariu Published: February 16, 2024

Luxury real estate has its unique place in the market, especially post-pandemic. Their supply and demand fundamentals also vary as compared to traditional residential housing. 

Texas today is one of the fastest-growing real estate markets in the country and a favored destination for investors and homebuyers. 

Did you know that between 2021 and 2022, the number of luxury homes sold in Texas saw an impressive 17% year-on-year increase? The total sales in luxury real estate amounted to a whopping $22.6 billion. 

Houston’s luxury real estate market grew by a staggering 200 percent in the first half of 2023.  This proves that the Texas luxury real estate market is growing steadily and attracting homebuyers and investors. 

However, one key aspect to keep in consideration is that luxury real estate is unlike traditional, residential real estate and functions uniquely. 

Before becoming a luxury real estate agent, it is important to understand how to get a Texas real estate license
The first step is to go through the Texas real estate license course. This 180-hour coursework teaches you about all there is to know about the real estate industry in the state. After completing this course, pass the licensing exam. Complete a few other minor formalities, get your Texas real estate license, and launch a rewarding career as a real estate professional in the state.

Texas Luxury Real Estate

Introduction to Texas Luxury Real Estate

Definition of Luxury Real Estate

Before learning about luxury real estate training, let us understand what the term ‘luxury’ means in properties. 

You might have seen luxury homes in magazines, billboards, and advertisements. You might have already heard about the term in meetings, events, and parties. However, it is not always certain that one can accurately or objectively define what luxury real estate is. 

Depending on the market, location, and residents, luxury real estate can have completely different meanings. 

Luxury real estate is properties priced at least $1 million that are bought by high-net-worth individuals for a comfortable lifestyle. 

Usually, the top 10-15% of properties in the market are luxury real estate. These properties have plush interiors, beautiful views, and unmatched levels of comfort and amenities. 

Luxury Real Estate Market Segment in the State of Texas

The Texas luxury real estate market has grown exponentially over recent years. 

Places like Austin and Houston continue to be hugely popular amongst the wealthy who want to own a piece of real estate. 

Due to a vibrant economy, the Texas luxury housing market is enjoying unprecedented demand from homebuyers and investors. 

Texas is home to the largest number of luxury properties available for sale as compared to the rest of the country. 

The growth of the luxury real estate segment is a sign of a steady economic outlook and a bullish real estate market. 

As the demand for luxury housing increases, so does the availability of amenities, entertainment, lifestyle, and sporting facilities. This leads to a snowball effect generating employment and earning opportunities in the state. 

Understanding the Texas Luxury Real Estate Market

Overview of the Texas Real Estate Market

Texas luxury real estate market is one of the strongest in the country and continues to perform exceptionally well. Post-pandemic, there has been a demand for luxury homes especially in Austin, Dallas, and Houston. 

Houston has ranked #1 in 2023 for the most homes sold which were worth $10 million and above. 

Dallas-Fort Worth came in a close second followed by Austin and San Antonio. 

Data indicates that nearly 90% of all luxury homes sold in Texas are from these four metro cities only. 

The supply of luxury homes for the discerning buyer has also increased significantly over the last five years. 

On the other hand, there has been a decrease of 16% in the luxury homes sold in Texas between 2022 and 2023. 

However, the year saw close luxury home sales contributing around 4% of the total number of all homes sold in Texas. 

In 2023, around 11,000 luxury property units were sold in the state of Texas. In terms of dollar value, it comes to around $20B in one year! 

Factors Influencing the Luxury Real Estate Market in Texas

Luxury home prices and sales are often influenced by the overall economic outlook prevailing in the state.

Luxury home buyers tend to prefer private, exclusive properties and gated communities that are open for a chosen few. Texas offers an array of such properties across its four largest metropolitan cities. 

Generally, buyers invest in luxury homes that are designed by renowned architects and world-class interior designers. 

However, high interest rates and inflation often influence the demand for luxury real estate. 

Further, favorable state policies and regulations push up the demand for housing, including luxury homes. This was seen in Texas when mortgage rates were reduced and local income tax deductions were removed. 

Popular Luxury Real Estate Cities in Texas

Since 2017, the four largest metros in Texas have seen a significant uptick in the demand for luxury real estate. 

Houston and Dallas Fort Worth have emerged as the leading choice for luxury buyers and investors. 

Despite higher interest rates and wavering consumer confidence, demand for unique, specialized luxury houses in Texas remains high. 

Here are some of the locations contributing 90% to the luxury real estate market in Texas. Austin-Round Rock

  • Houston 
  • Dallas-Fort Worth
  • San Antonio-New Braunfels

In addition to the above, the rest of Texas accounts for around 10% of the total luxury homes sold in the state.

Texas Real Estate Agent

How To Become A Texas Luxury Real Estate Agent

Obtaining a Real Estate License in Texas

Getting a Texas state real estate license is mandatory and it will give you the knowledge and confidence you need to succeed. 

The luxury real estate market is trust and network-driven, so you will need more than just luck and hope. 

Let us start with what are the basic eligibility requirements to get a license:  

  • You must be at least 18 years or older to be eligible for a real estate license. 
  • Must be a U.S. citizen or a lawfully admitted alien
  • Should meet the honesty, integrity, and trustworthiness guidelines by the Texas Real Estate Commission (TREC). 

If you meet all the prerequisites, you will be eligible to apply for a pre-licensing education. 

Completing the pre-licensing education is mandatory for all applicants. Note that you will have to choose a state-approved college or course provider for your real estate licensing education. 

A pre-licensing education course as fixed by the TREC is 180 hours. 

After you have completed the coursework, the next step will be to take the final licensing exam in Texas. 

Once you have successfully cleared the exam, you will obtain your real estate license. 

Gain General Real Estate Experience

Now that you have obtained your Texas state license, the next step should be to gain real-world industry experience. 

For this, find a sponsoring broker willing to mentor you in the initial stages of your career. 

Develop Expertise in Luxury Real Estate

After a few years of work experience, you should take up and complete your luxury real estate training. Next, talk to potential clients and reach out to experienced luxury agents and brokers. 

You should also learn more about the psychology of luxury buyers and investors. 

It will give you the confidence to approach, persuade, and convert wealthy individuals into clients.