For any real estate agent, a clearly defined niche strengthens your market position, creates efficiencies and establishes you as an expert. Whether you specialize in a property type, client demographic, or neighborhood – adopting a niche strategy has obvious benefits. So how do you go about discovering, defining & developing your niche?
1.Study Your Past Clients
In order to adopt a niche strategy, first look at your past clients. What patterns do you see? Study client profiles, property types, neighborhoods & home prices. Are most of your clients buying heritage properties? Or maybe there’s lots of millennials shopping in urban areas, or retirees selling their family home to downsize?
2.Decide if It’s for You
After looking at your past clients and the trends that emerge, which were the most lucrative? Examine your commission, expenses and time spent to secure and close each deal. If you have more than one niche that appears, which did you enjoy working with more? And most importantly – will this be a lucrative niche moving forward? Research future market trends and see what opportunities there are. Are the demographics of your city changing? How does this affect your niche strategy? A lot of this info can be found through your local real estate association and municipal government.
3.Define Your Niche
After analyzing your past clients and deciding what niche is for you, it’s time to define it. You should be able to succinctly describe your niche in one sentence. It should give direction to your marketing & prospecting, and let potential clients know exactly who you work with. For example, “I help young couples and families find their first home” or “I specialize downtown condos for an urban lifestyle.”
If you’re going to adopt a niche strategy – you’ll need to be an expert. Brush up your skills by registering for a course, reading up on emerging trends and practicing your scripts. Honing in on a geographic area? Study up on past sales and visit open houses in the area to see what’s selling, what key features the area boasts, and how properties are marketed. Looking to work with retirees downsizing? What about becoming a NAR Senior Real Estate Specialist®?
How will you capture your niche? Even with all the planning & studying, execution is where you’ll sink or swim. Focus your efforts on your niche: target your website to these home buyers or sellers, network with service providers and local businesses that also work with this demographic; talk to your sphere of influence about the type of clients you work with and properties you sell so they know what referrals to send your way; and regularly re-evaluate your efforts to see what’s successful and where improvements can be made.