How One Coat Helped Barbara Corcoran Build A Real Estate Empire

At age 23, as Barbara Corcoran ventured into real estate, she observed the distinct gap between her and seasoned players in the field.

Speaking recently in a TikTok video, the now 74-year-old tycoon reminisced, "It dawned on me that success had a certain look. While the elites paraded in their finery, I was still donning my worn-out navy blue coat from New Jersey. A wardrobe upgrade felt like a distant dream." 

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But a twist of fortune during her early business days provided an unexpected opportunity. 

"After renting out an apartment in my very first week, I had a $340 commission burning a hole in my pocket," she said. "My immediate destination? Bergdorf Goodman, with my eyes set on the most exquisite coat they had."

She invested in a plush wool coat sporting a distinct brown and white design, a snug high collar and a price of $320 pre-tax. That's equivalent to $2,235 in today's money. 

Yet, for Corcoran, this was less about the material and more about the metamorphosis it induced. 

"That coat was more than fabric. It was my armor of confidence, shaping me into the powerhouse I aspired to be," she said. "For the next four years, that coat was my constant companion, pushing me to mirror the success it exuded."

As noted by CNBC, the profound impact of attire on a person's psyche is encapsulated in the term "enclothed cognition," coined by renowned psychologists Adam Galinsky and Hajo Adam. Their groundbreaking 2012 research on a group of 58 students illustrated the transformative power of clothing. When draped in a lab coat, the students exhibited heightened attentiveness and accuracy in tasks, underlining the symbolism of meticulousness and focus associated with the attire.

When making luxurious clothing investments, the true value isn't just in the price but in its frequency of use and the confidence it imparts. 

Clearly, Corcoran's splurge paid dividends, not just in boosting her morale but also in tangible returns. Her fledgling firm, grown from such modest beginnings, was eventually acquired by NRT for $66 million.

With the wisdom of years and experience behind her, Corcoran shared her golden nugget. 

"It's all about perceptions shaping realities, rather than the converse," she said. "To evolve into your future self, first embrace its appearance."

Corcoran is proof that the age-old saying is true: Dress for success.

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