Are you a real estate generalist? All real estate agents are to some extent. However, specializing in different real estate niches — while also marketing to everyone — can set you up for success in being the expert in that area.
Being a real estate agent takes a lot of time and effort, but you can make a great living if you do it right. For real estate agents who want to gain an edge, finding a specific niche to hone can be helpful.
From new construction to commercial properties, there are many different focus areas to consider. And some, such as short sales and REOs, vacation rentals and fixer-uppers, are hotter in some markets than others. Concentrating on one particular market can help you become an expert, attract more clients, and maximize profits.
Here’s how to find the right niche for your real estate business.
Real estate specialties to consider
There are many subsets under the umbrella of real estate. In general, these specialties will include a specific type of property or a particular type of client.
- Rental properties. From long-term rentals to vacation rentals, this is a large subset with varying options. Real estate agents with expertise and knowledge in this space can be a great asset to real estate investors who are ready to spend. As more Americans decide to start investing, this could be a growing field.
- Location-based real estate. Perhaps the most popular niche is location-based real estate. This type of real estate agent will focus on a specific area within a geographic region. For bigger cities, this may be a specific neighborhood or a high-demand school district with a large number of single-family homes.
- Home types. There are many different types of homes for buyers to choose from on the market. Whether they want a condo or a traditional single-family home, there are options to consider. Some agents may choose to focus on one of these home types to carve out a niche. Condos, farms, ranches, and new builds are just some of the options.
- Foreclosures. On behalf of the buyer or the seller, a foreclosure specialist has unique experience in the real estate space. This type of transaction can differ from a traditional sale, which underscores how important it is to have an experienced agent involved from the start.
- Commercial real estate. Real estate for business is in high demand, and negotiations are more advanced in this niche. Office space, industrial warehouses, and other types of commercial real estate require an expert agent with plenty of intel.
Other unique focus areas include historic homes, green construction, fixer-uppers, or vacant properties, but don’t be afraid to think outside of the box when you’re exploring real estate specialties.
5 Ways to find your real estate niche
If you’re ready to find your unique space in the big world of real estate, here are five things to think about as you choose a niche.
1. Recognize your unique strengths
Everyone has different strengths and weaknesses. Do you frequently receive compliments on your success in marketing and selling condos? Are you the go-to for helping luxury home buyers? Perhaps you’re the only discount real estate broker in town?
Think about your interests and what makes you stand out from the crowd. Choosing a niche has a lot to do with pursuing what you’re good at and passionate about. If you feel stumped, get some feedback by asking colleagues or previous clients. This is often the best way to find out where your skills are most needed.
2. Analyze the market
A deep understanding of your real estate market is important to grasp before you choose a niche. For example, you can’t focus on townhomes in an area that is much more dense with single-family homes.
Think about trends and patterns in your local real estate market and write them down on paper. It also helps to pull some data to see how the market has fluctuated over the past few years.
Although it may be tempting to follow the money, it’s important to be genuinely interested in the niche you choose. This will help you be more successful.
3. Scope the competition
Think about the niche you’d like to explore and research how many agents in your area are on the same beat. Try not to carve out a speciality in a space that’s already saturated. Although a little competition is OK, it’s best to avoid a situation in which you’re immediately competing with other agents to get listings or clients.
4. Seek educational opportunities
Once you’ve decided on a specific focus, advance your skills with certifications and courses. From property management to financing, there are several different types of advanced training opportunities in the real estate industry.
These educational opportunities will help you learn and grow, giving you more confidence in your niche. For example, if you want to be one of the best low-commission real estate agents, you should know everything about the topic of commission savings.
This will set you up for success once you start working within your new specialty.
5. Don’t Be afraid to reevaluate
If your new path isn’t setting you up for success, it may be time to reevaluate your situation. Perhaps your profit margins aren’t growing or you’re struggling to find clients. Your niche doesn’t have to be set in stone. It can evolve over time until you find the right focus.
However, you may not need to go in an entirely new direction. You may just need to make modifications to improve your situation.
Choosing the right niche is just the beginning. After you make a decision, develop your marketing plan. Define your brand and put yourself in a position for clients to easily find you and your business. Use social media, advertisements, newsletters, and referral incentives to drive business and attract new clients.
Luke Babich is the Co-Founder and COO at Clever Real Estate, the nation’s leading real estate education platform for home buyers, sellers and investors.
