How to Find Your Niche in Real Estate
Real estate can be an extremely competitive field. In this guide, we’ll highlight how you can stand out and generate more leads: by finding a niche to specialize in. See top real estate niches that you could go into.
It’s no secret that real estate is a fast-paced, extremely competitive field. It requires hard work, diligence, and astute insight into trends, the local housing market, and homebuyer interests.
As a real estate agent, your ability to stand out, generate new leads, and close deals is crucial to your success. But with so many other agents out there who are great at what they do, do you even stand a chance when it comes to standing out?
One of the best ways to stand out is by finding a niche to specialize in.
“The sheer size of the property market means that there’s an opportunity for almost anyone to find an area that they enjoy and are good at which will likely result in greater prosperity and success,” says Ben Handler, founder of the Buyer’s Agent Institute –a company that aims to provide training and support for buyer’s agents.
“By focusing your talents, you can build the necessary skills and experience that will make you an expert and help differentiate you from your competition,” he says.
Specializing allows you to narrow down your field so that you can become an expert in your niche. This of course, means that you can position yourself as the go-to expert for anyone who’s looking to buy or sell in your sector.
But what niche should you go into? That’s the million-dollar question.
If you’re thinking about specializing in real estate, you’ll want to focus on an area you enjoy, that’s also in-demand. You should also note that in some cases it might even make sense to specialize in two or three different things. For example, you could be a real estate agent who sells both luxury and eco-friendly housing, or someone who works with investors and specializes in short sales.
Specializing can also help you to be found. Most buyers and sellers start their searches online. When you specialize in a specific type of property or client, you’ll have a greater chance at being picked up by search engines. For example, let’s say you sell beachfront condos in Biscayne Bay. When someone searches for that, there’s a good chance that they’ll find your website.
Now, let’s take a look at a few tips for finding your niche, along with some aspects of real estate that Realtors can specialize in.
How Do I Find My Real Estate Niche?
Discover Your Passion
There are many different areas you can specialize in, so why not start by finding the area that you’re passionate about? It might sound a bit cheesy, but specializing in an area that you know and love can help to make your job far more enjoyable and fulfilling. For instance, if you’re into eco-friendly housing, then why not brush up on your knowledge of this and start carving out a niche for yourself in that sector? Again, you’ll want to align your interests with things that your clients are interested in as well. When it comes to sustainable housing, being knowledgeable on home features that promote health and sustainability could be a great way to align your passions with features that homebuyers are increasingly looking for.
You know the saying, “All real estate is local.” For real estate agents, it often makes sense to specialize in one local area. But in some cases, it might make sense to dial in your expertise to a neighborhood level as well –depending on your market, of course. That’s what Mark and Linda Porter of Castle Hills Real Estate have done. Based in Lewisville, Texas, their company Castle Hills Real Estate focuses on one golf course community. Specializing in one niche allows them to get better results for their clients, helping them to dominate their market.
Identify Your Favorite Client Type
Some real estate agents choose to specialize in terms of clients as well. This means identifying the type of client that you’d like to work with, the one who best matches your skillset. For example, you might choose to work exclusively with sellers, or as a buyer’s agent.
Not sure how to get started? Often, additional training is key.
“Real estate agents that are looking to make the transition from selling to buying property on behalf of clients can do so via online education and training,” explains Ben Handler. “This can equip them with everything they need to know from serving clients to marketing their business.”
Whatever you choose, try to look to specialize in an area that you enjoy working in. Or, brush up on your knowledge in an area that you’d like to branch into.
Specialize in the Type of Sale
You could also specialize in a specific type of sale. If you’re an investor-facing real estate agent, specializing in short sales or probate properties could help to give you an advantage. Investors are often looking for these properties, so being the go-to expert could help you to attract more business.
What Are Real Estate Specialties? Properties You Can Specialize In
Now, let’s take a look at some of the different properties that you can specialize in.
Working with investors requires a different approach to homebuyer clients. But for the right agent, this could be a dream opportunity. If you’re a hustler, good at making deals, running the numbers, and finding properties that work as investments, then this could be the right niche for you. There are investors in multi-family, commercial, and single-family rentals, so you can specialize even further if you’d like.
While the term luxury varies depending on the location, currently, the median sale price for a luxury home in the U.S. is at $825,000. Luxury homes are defined as the top 5% of the market. In most markets, there are fewer luxury clients, but that might not matter if you’re looking to specialize in this niche as the commissions are higher. In the right market, this niche can prove to be tremendously lucrative.
Thinking of specializing in multi-family? If you live in or near a city or an area that has a high number of these properties, then this might make sense. Selling multi-family properties mean that you’ll be working with investor clients, and since they sell for more, this usually means higher commissions as well. Keep in mind that as with luxury properties, some markets have more multifamily properties than others.
While residential real estate usually comes to mind when you think of real estate, commercial property can be a good niche to specialize in too. Especially when you consider that commercial agents have an average salary of nearly $70,000 per year nationwide according to Glassdoor. Commercial real estate is entirely different from residential real estate and each state has its own licensing requirements and regulations surrounding commercial real estate as well.
New Construction Homes
Start building a career –in new build homes! A housing market that’s seeing a good amount of new construction opportunities means growth, which is always a good sign. New construction homes are one niche that requires a lot of attention to details, and within this niche, there are additional areas that you can specialize in, depending on your interests. For instance, you could sell homes to investors or homebuyers. Additionally, some builders might prefer you to walk through the details with the buyers, while others might appreciate a more hands-off approach.
It’s summer all the time! If you live in an area that sees a lot of visitors, then this could be a good niche to specialize in. In order to tap into this niche, you will want to become an expert on the rules surrounding timeshares, calculating the returns on short-term rentals, as well as local regulations surrounding short-term rentals.
Love old houses? If you’re in an area with a number of historical homes, this may be a good area to specialize in. Most states have a designated historic district which have additional rules and regulations that go alongside these home sales. Getting familiar with these rules can help you become successful in this niche.
Eco-Friendly Homes: Healthy Homes and Energy-Efficient Housing
Green living is a niche that can be tremendously rewarding. And it’s one area that many homebuyers are increasingly interested in. With more and more people looking for energy-efficient homes, green real estate could be a good niche to carve out for yourself. Being able to convey information to buyers about homes that are energy efficient, sustainable, or healthy can help to give you an edge, positioning you as an expert, and helping you to close more deals.
Tips to Stand Out As
Finding your niche and specializing can be a great way for any real estate agent to stand out. But there are other things that you can do to give yourself an edge above the competition as well.
Here are a few ways that a real estate agent can stand out:
While there are many ways to help yourself stand out among the competition, one of the best ways is to be knowledgeable about the area that you’re specializing in. Additionally, a good knowledge of the local area and housing market is vital for your reputation as well.
Look to build long-term working relationships with your clients. Don’t view them as just another dollar sign. Understand what they are looking for and help them make their dreams become a reality. Even if you can’t meet their needs, work to do your best to direct them to someone who can. Building relationships will help to grow your reputation.
Regardless of how you choose to communicate, try to stay on top of it. This means answering phone calls and returning voicemails promptly as well as responding to emails in a timely fashion, usually 24 hours or less.
Once you’ve found an area to specialize in, work to build up your reputation in that niche. One of the best places to start is by taking courses or pursuing certifications in that field. Certifications such as Financing Specialist, Certified Property Management Specialist, or Sustainable Real Estate Professional can help to set you apart.
Finding your niche in real estate can help set you up for long-term success in your career. By looking to specialize at the crossroads where your interests and your clients’ interests intersect, you’ll be able to provide value –and will find that marketing and personal branding become easier as well.
“You don't need to be everything to everyone,” says Handler. “Focus on what you enjoy, where the opportunity is in the market, and where you can add value.”
As a bonus, when you’re doing something that you enjoy and are passionate about, you’ll also discover that your work leaves you feeling more fulfilled as well. So take a step back, find your niche, and then get to work establishing yourself as the go-to agent in that field.
As a real estate agent, one of the best ways to close more sales is by being fully informed and knowledgeable on the properties that you’re selling. Learn more about earning your green credentials through Rise –and improve your knowledge on features that are becoming increasingly important to today’s homebuyers. Become a Sustainable Real Estate Professional. These courses are three hours or less.