If you’re a real estate agent, you know the competition is fierce. Finding new clients can be an uphill battle, and convincing those clients that hiring a Realtor is worth the cost is even harder. (Need some help convincing them? Check out this article!)
Statistics suggest that somewhere between 75-87% of all new real estate businesses fail within the first five years. Those statistics are sobering enough to give even the most motivated agent pause.
In an industry crawling with talent, you might be wondering how to be a successful real estate agent. One way is to identify and establish a niche market – a specialty or area of expertise.
Why You Need a Niche as a Real Estate Agent
Establishing a niche means solidifying yourself as the expert in a particular area. It gives you credibility within your market. Clients in the niche market are more likely to hire you as their agent if they trust your experience and knowledge. Plus, niche markets thrive on word-of-mouth advertising and referrals, so establishing a niche will lower your marketing costs.
For example, if you decide to pursue the military family niche, you’ll seek out information and advice regarding everything there is to know about military moves, VA loans, military-friendly neighborhoods, etc. You’ll immerse yourself in that world, learn the language, and understand the problems facing military families as they move from one place to another. Then, you’ll market yourself as a military move expert. Once you get a few satisfied clients under your belt, word will travel fast, and pretty soon military service members and their families will be seeking you out when they prepare to buy or sell a home in your area.
Choosing a Successful Real Estate Niche
There are an unlimited number of niches: social, geographic, economic, real estate-specific, occupation-based – the options are endless. If you’re struggling to find your niche, here are some ideas to get you started:
This niche has very little to do with real estate and everything to do with community. Think about your social groups and strive to become the real estate expert in that group. Maybe it’s your church, the school PTA, a local sports club, current or former workplaces, or even your neighborhood. Perhaps you’re part of a non-English-speaking community where your skills as a translator are invaluable. Or maybe you have personal connections to military members, first responders, teachers, or other well-connected groups.
If you’re deeply involved in a social circle, you already know the mindset, needs, and values of the people you’re with, so why not advertise yourself as a real estate agent who understands them most? Social niche markets are incredibly valuable. Many of your potential clients already know and trust you, so hiring you to broker a real estate deal feels comfortable and safe.
Successful realtors with geographic niches work with clientele in a specific geographic area. Clients – particularly those moving from another state or part of town – are unfamiliar with the location you serve. As the expert in your city or neighborhood, you’ve done your research: you know the best schools, which communities have a playground and pool for young children, homes closest to public transportation or shopping, and which neighborhoods serve aging adults. Clients will appreciate your intimate knowledge of the area and are more likely to recommend you to a friend or family member in the future.
Real Estate-Specific Niches
The real estate niche focuses more on the type of property than the location or the social aspects of home buying and selling. You might focus on properties with acreage, learning more about mineral rights, wells and septic systems, and livestock regulations. Or maybe you focus on condos and townhomes, learning everything there is to know about local HOAs, community amenities, and available parking.
The more you know about a specific type of property, the more you’ll be able to answer your clients’ questions as they arise. Once again, your expertise will make you stand out from other agents, and you’ll be more likely to realize success as a Realtor.
Other realty-specific niches include vacation properties, investment real estate, waterfront or beachfront properties, mountain homes, multi-family properties, and more. Find your niche and become the expert on those types of properties.
This list is just a start. Get creative and brainstorm which specialization makes the most sense for you. It may take some time for your niche market to accept you as an expert in the field, so be patient. Once you’ve gained the trust of the community you serve, you’ll be well on your way to a successful career. Want more advice on how to be a successful real estate agent? Check out more blog posts and join our community! We would love to hear from you.