It’s well understood that the a large number of the most successful realtors in any local market will be ones who have established themselves in a particular niche of the business. This is a very conceptual idea, and it’s not only people who are new to the real estate business who may struggle to understand exactly what’s meant by ‘finding a niche’ when looking for advice for new realtors. Even experienced and established realtors may not know what it means, or have made any efforts to define one for themselves. That’s not to suggest they’re going to be less successful as a result, but it does become a possibility.
Real Estate IS a challenging business, and if there’s one thing that can be said for certain it’s that anyone who thinks it’s an easy way to become wealthy and enjoy a well-paying career without a lot of hard work is going to be VERY mistaken. It’s extremely competitive and especially so in major urban metro areas of Canada. That’s not to discourage you, but you are going to have to REALLY buckle down and work hard – and work smart – if you’re going to enjoy the successes you envision for yourself.
Digging up clients for your business is always challenging, but especially so in the beginning. Here at Real Estate Leads, our online real estate lead generation system is an excellent way to harness the power of web marketing to get more out of your client generation efforts and ‘hit the ground running’ more when it comes to making a name for yourself AND generating income for your efforts. It’s just as good for established realtors who want to keep a good thing going!
But back to topic here, what can you do to find your niche as a realtor? It’s not something that comes naturally to most people, so here are 8 tips that are known in the industry and we feel are excellent ones for helping you along with this. There are dozens of factors you should consider, from local market conditions to client expectations to your own hard-won knowledge.
- Understand your Market
Before choosing a niche, you first need to understand your local real estate market. What properties are always in demand? What demographics are seen for the most frequent buyers and sellers in the area? Do first-time buyers dominate, or is it the opposite of that? Make detailed notes of overall trends you’ve spotted in your market, and then focus your efforts accordingly.
2. Know your Strengths
What aspect of your career do you feel quite strongly is where you are most skilled? Is it negotiating, or perhaps its staging properties? Maybe you are best at marketing listings, or digging up homes in a specific region or community? Maybe your best attribute as a realtor is the overall passion you have for homes and the housing market. The right niche should merge your top skills with your top interests.
3. Weigh your Educational Credentials
It’s smart to earn clout in your niche by acquiring certifications and continuing education courses. Once you’ve narrowed down a short list of niches, research what related educational programs are available to people like you. Are there any certifications or designations you could earn to make yourself more marketable? How about courses that could improve your skill set or knowledge base? What resources might help you stay on top of trends in your niche? How accessible are they, and how realistic is that you have the time needed to utilize them?
4. Consider Competition
Specializing in luxury homes when there are already 25 agents in your area doing the exact same thing isn’t going to beneficial here. It would make finding new clients difficult, not to mention negatively impacting your commission potential. It’s good to evaluate other agents in your marketplace, and then look for gaps among them. What specialties aren’t being covered at present? Is there a potential niche that would give you more access to a share of the market without facing the competition you would if you didn’t create than niche for yourself?
5. Benefit from Thinking Outside the Box
There is no shortage of niche options in real estate, so don’t limit yourself to going with geographical areas or a certain property / home types. Be creative and really look into specialties that can distinguish you in the eyes of buyers and sellers in your area.
As far as property specializations for realtors, some you can consider are:
Luxury properties / Vacation and second homes / Green and energy-efficient homes / Urban properties / Fix-and-flip homes and distressed properties / Investment properties / Commercial properties / Rentals / Farms or ranches / Condos, penthouses, and apartments / Co-ops / Disability- or senior-friendly homes / Vacant properties
For clients, consider these different types and what you might have or have access to that would increase the value proposition of working with you as compared to other realtors:
First-time buyers/Investors / Buyers only / Sellers only / Out of town or international clients / Millennials, Baby Boomers, Gen X
Specific neighborhoods or subdivisions / Cities / Buildings / Blocks / Vacation spots
6. Think Beyond Financial / Income Interests
Your niche needs to be in line with your profitability, but make sure you think beyond financial considerations too. Will you enjoy pursuing it? Will you like the customers it allows you to work with? Will you feel connected to the work you’re doing (and feel that way long term)? If you’re going to establish a niche effectively, you really do have to have your heart in it
7. Utilize Past Experiences
If it’s possible to bring your past skills and work experience into the fold, then you should absolutely do that. Have a look at what you did in previous careers / means of employments and see if there’s anything your acquired there that you can then apply to your real estate business as a means of creating a niche for yourself.
8. Re-evaluate Regularly
Once you’ve chosen a niche and built it to some extent, you should then start reevaluating it regularly. Have profits climbed? Are you enjoying a strong base of clients? Do you feel you’re building a reputation in your niche? If those answers aren’t what you would like them to be then try to determine why. Keep in mind that a niche in real estate business doesn’t have to be a hard-and-fast choice. Many realtors will find that theirs evolves over time, but only does so effectively when they are constantly being equivocal and evaluating it over and over again to ensure it’s the right fit and that it still has the potential they originally identified with it.
Sign up with Real Estate Leads here and receive a monthly quote of qualified and online-generated buyer and / or seller leads that will be delivered ONLY to you once you sign up and lay claim to your exclusively-served region of any city or town in Canada. It’s your region, you and only you will receive the leads, and from there the opportunity to turn leads into clients has been created for you. You’ll quickly come to see it as an excellent investment in the growth and vitality of your real estate business.