Real estate agents who try to be all things to all people often find themselves with few clients. The world has become so varied and complex that many agents only do well when they decide to focus on a particular slice of the market and then specialize in serving that niche. Take the time now to decide what niche you are best suited for. Here are some of the things you will want to consider when making your selection.
The first thing you will want to consider is where your interest lies and what you are good at. If you try working a particular segment of the market you have no interest in, or worse, do not even like, you will not last long enough to make any money. If you are interested and like what you are doing, you are apt to do a better job, make more money, and stick with it long enough that people begin to see you as the expert to go to. As an example, if you specialize in vacation homes on lakes in your area because you own one and enjoy that lifestyle, your enthusiasm will show through and you will soon start getting referrals from those you work with.
The next thing you might want to consider is the size of the potential niche. If there is not enough business to keep you in business then you you will have to either specialize in more than one area or find one with enough potential business to make it worth your time. Ask yourself if there will likely be enough clients or a high enough income to be worth the effort. Using the example of finding buyers or sellers for lakeside vacation homes, there may not be a large number of clients but each deal might be worth enough that specializing in this niche would still be desirable.
The next thing you have to ask yourself concerns your competition. Are there already enough firmly entrenched agents serving this market? If there is, you are probably better off finding another area to spend your time. It is difficult, if not impossible, to unseat the reigning champion in a particular market. You might relish the challenge but if you are serious about making money, find another area to specialize in.
The last item on our list is what the future looks like for the niche you are considering. This will probably be the hardest of the criteria listed here to make a judgement about but you must take it into consideration. If, for example, you believe a particular neighborhood of single-family homes close to the city center will have a resurgence in the future, this might be exactly the kind of area you should specialize in. Another assessment might be that the area has already seen its best days. If these single-family homes are slowly being replaced by light industry, then it will be best to find another area to spend your time and money.
The need to specialize is becoming more important everyday, and the niche you decide to concentrate on can either make or break your career. So, at a minimum, make sure you filter any area you are considering through the criteria listed here in your search to find the niche that is right for you.
Aldar Nagy is the author of several informational type websites. These include The Real Estate Marketing Blogger, which offers free marketing ideas and daily tips to agents to help you list more sellers, find more buyers, and increase your earnings through better customer service. Real Estate Marketing Blogger can be found at: http://www.realestatemarketingblogger.com
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