In real estate, as in nearly every other industry, it pays to specialize within your own field. It serves as a wiser alternative, in most cases, than trying to be an expert in the many aspects of real estate. You can't expect to target every home buyer and seller. It can prove difficult, if not impossible, to efficiently serve every potential and available client.
The truly successful real estate agents, therefore, usually prefer to target a niche. They work hard to specialize in certain areas only, and establish themselves as an authority. Once they prove their ability to close deals, they stick with their chosen niches, and forge successful, lucrative careers.
Niche opportunities can be found, or indeed created, to provide an edge over the competition. You can select a particular category of customer, target a certain type of property or choose a specific geographical area to mark as your domain. It is, of course, ideal if you can find an area to specialize in where you also enjoy working.
Common marketing niche opportunities which have proven to be successful roadmaps for real estate agents include:
A Single Type of Property
Resort and Vacation Homes
One of the most potentially lucrative niche areas in the real estate industry is working almost exclusively with getaway properties. If you can tap a vacationer-friendly area, and establish yourself as the local expert, you can enjoy a six-figure income over a long and successful career.
Target foreign buyers, and offer them the resort and vacation homes of their dreams. In a few years, they might even become sellers, and give you a chance at reselling the same properties.
Properties with prices at the higher end of the spectrum usually generate correspondingly high commissions. Luxury homes can, therefore, feel particularly inviting for real estate agents in search of a niche.
It is important to remember, however, that the higher per-transaction commission does come with a trade-off. You will need to make larger investments to explore the unique marketing avenues necessary for selling luxury homes.
Cabins and Cottages
Coastal homes, beachside bungalows, forest cabins, and cottages in the rural countryside each require a special marketing strategy. The savvy real estate agent won't, however, be put off by such requirements. They will instead employ the proper approach to increase awareness and promote these properties to the ideal clientele.
Focus on the advantages of these niche properties, hire a real estate photographer, and highlight the community elements. Look for clients who wish to purchase vacation homes, and offer them these specialty listings.
A Single Type of Client
Instead of selecting a property type in which to specialize, you choose one particular type of client as your niche. Some real estate agents work exclusively with sellers while others opt not to list at all, and work only with buyers.
In an even more specific niche, agents work with clients who buy and sell properties for investment purposes only. You can also target the 90 million strong market of unmarried, single people in the United States. Other client types to target as niches include seniors, baby boomers, Millennials, the Hispanic community, and first time home buyers.