Real Estate Niche and Niche Marketing are frowned upon by some. In these cases, it is viewed as a counterintuitive practice depriving them of a larger chunk of their target market. After all, why would anyone voluntarily decide not to work with certain groups of people and limit the target audience to a very specific and defined audience? Doesn’t a smaller audience equal fewer deals? Not necessarily.
Niche Marketing wouldn’t have lasted for so long, had it not been effective, not only in real estate but in all fields of business. The fact is the practice is quite lucrative. In this article, we will explain what niche marketing is, why you should have it in your marketing efforts, and how you can define and develop your niche target to prosper as a realtor.
What is Meant by Niche Marketing?
Niche marketing is the idea that the market can be divided into different groups of people who share a set of very specific and clearly defined needs. The idea further pinpoints that different groups of people have different needs. Those who buy a house for the first time have a completely different story to tell from those who are considering moving to a bigger place to make room for a newborn.
Niche marketing requires realtors to create the marketing plan, messaging, and services around the specific needs of a very clear and defined audience. Mass marketing is trying to cover everyone and has nothing to do with niche marketing. In niche marketing agents try to narrow down their target market as much as possible.
Why Should Realtors Focus on Niche Marketing?
When you target everyone and do not have a defined and clearly specific target market, you are like just every other realtor. You are Jack of all trades and master of none.
The same principle goes in business. People trust realtors who specialize in their specific needs. This in return results in high quality leads with higher conversion rates. It can be a real game-changer for agents who are having a hard time running their business. Imagine leads coming right through your door without you chasing them.
How to Pick a Real Estate Niche
Now that we agree real estate niche marketing works, let’s see how it can be done the right way. First things first, let’s get this straight: it won’t happen overnight and there are no shortcuts. Picking a niche takes time and requires extensive research.
Given the above descriptions for niche marketing, one might assume the niche research to be a brutal task. This isn’t true, although niche research requires you to be focused and do your homework. You might get lucky and pick the right one but a better process is to consider the following when choosing a niche:
Do you like working with this niche?
Love what you do or do what you love. Doesn’t matter which way you read this, whoever said this was right. Motivation plays a pivotal role in personal drive. If you do not love your niche, you might be able to push yourself around for a while before you burn out. Picking a niche for the sake of assumed profit without caring for it, will provide a short-lived window of profitability. You will eventually get tired of them.
How is This Niche Doing in Terms of Size? Is it Growing?
It makes sense to invest in a group of people who are increasing in size. You are repurposing your marketing efforts to do more business not less. Go for a niche that is facing a rising trend in terms of population or the one that is stable.
Would you make it as a “go-to” agent for this niche?
Being ambitious can be a beneficial aspect of determination agents can have in business. But aiming too high can also do you harm more than good. While picking a niche, agents should consider their abilities and specialties which will help them help others. Always imagine yourself in that niche and see if you are the perfect fit for the needs of that specific group of people.
Can you handle the Competition?
You have found the perfect niche with a growing audience, that fits your specialty and it happens to be your favorite field of business. You are all set, right? Almost. There is one more thing to consider though. The competition. You are not the only agent in the world and there are many others who are as determined as you.
Study your competition and see how they are doing. Are they well-known by others and have they proved themselves as the go-to real estate person? Can you beat them? Or would it require a long and tedious course of trying to get your foot in the door? If odds are against you, you might consider choosing a different niche.
We get it: you need fast results. Maybe that’s even why you are searching online and have come to be reading this article. Unfortunately, like most things in life, this one too needs time and patience. In the beginning, most likely, you will hit the jackpot and as time passes you will start to lose hope. Patience is virtue though.
How patience should you be then? It is a relative concept and different people have different ideas. However, a month or two won’t do. An average of 6 months is needed to see the desired results. Your niche market needs time to verify that you are real and can be trusted. And when that happens it will be worth it
Criteria for Finding Your Perfect Niche
There are two terms frequently used in marketing and business: Red Ocean and Blue Ocean. The red ocean refers to a market overwhelmed with competition. Where there are many people offering the same services and products. It is clear that prospering in such a market will be pretty difficult as you will be just another agent added to the queue waiting for your share of business.
On the other hand, there is the blue ocean. An untapped market where there is little competition. There are not enough products and services for people’s needs. Contrary to the red ocean, the blue one offers high chances of success.
Unfortunately, the real estate business is red. Very red in fact. There are a lot of agents doing the same thing and looking the same to the crowds (except a few who have made it). Niche specifications can help you find your bit of blue ocean.
The Perfect Client
Sit back and think. Imagine your ideal client. The one for whom you would be the perfect agent. Who would this SINGLE person be?
- Where does he live?
- How old is she/he?
- Is he/she single or married?
- How much money does he/she make?
- How educated is she/he?
- Is he/she employed?
- What are his/her values in life?
- What is he/she interested in?
1. Their Biggest Challenges
The idea behind real estate niche marketing is to pinpoint the exact needs and challenges of the target audience. Therefore, the second step would be identifying what your niche’s main concerns are in real estate. Let’s say your real estate niche includes younger generations new to the buying process and without any idea what to do. Their concerns are quite different from those of senior couples who are considering downsizing.
2. Be the Savior
Now that you know who your perfect client is and what their main problems are, it is time to think of the ways you can help them. This is where you should shine the brightest. This step is not about how great you think you are. Nobody cares about that.
What matters here is how you can help the clients with their problems and what the outcome would be. That would make up your mission statement as well. How fast and easy can you help clients? Highlight that one.
Whatever you do, it must result in your client saying:
“WOW. Finally, someone who knows how to help me. She/he is the one!”
Don’t settle for anything less.
Real Estate Niche Ideas
To help you find your perfect niche we have compiled a list of ideas to consider as follows:
It pays to consider different groups of people. As mentioned earlier targeting everyone won’t work. How about targeting senior citizens who are not tech-savvy and won’t bother searching online for a new home? Single moms or dads who are busy taking care of their children and can’t afford fancy homes? Or newlyweds with a limited budget trying to buy their first home?
It pays better to be the expert of a small community rather than a big city. While narrowing your real estate niche down focus on the neighborhoods you know well. Areas where you are familiar with the market and the properties. Therefore, you will be a greater help to your clients.
3. Property Types
Just like specialty doctors, realtors can have their own specialty. You could be the expert realtor for condos. The one who knows everything about condos and provides the clients with the best service. The kind of service general realtors are unable to offer. This expertise will root from the experience and deep knowledge of the properties realtors have acquired through the years.
However, such markets can be fragile due to the ups and downs of the market, therefore it is advisable to have a backup real estate niche market like demographics and location in case things go bad.
4. Luxury Properties
You can be the expert of the luxury properties and attract those who are looking for some glamour and elegance. Targeting high net worth individuals may be harder as more realtors are inclined to do business with such a real estate niche due to the profitability, but you can make a great deal if you have knowledge alongside a few closed sales in luxury real estate.
5. Follow Your Passion
Think about who you would love to do business with. This way you are choosing your clients rather than them choosing you. You can also think about what kind of properties you love. How about commercial properties? Marketing what kind of property would make you feel better? Would trying to sell small homes for people with steady but lower incomes bring you inner satisfaction?
Real estate niche marketing works but it takes time and patience. You may not see the results you were hoping for, right off the bat (that’s why skeptics keep doubting) but with little tweaks based on what you have done, you can learn the ropes and start earning.