You might’ve heard this term before, but what does it really mean to have a niche in real estate?
To be in a niche in a particular area of real estate means that you are an expert, or you have a substantial amount of knowledge in that area, whether through education or transactional experience. A niche is a way to focus on a particular type of property or to serve a specific demographic group.
One benefit of defining a niche is that you become a master in that particular area. For example, selling duplexes and triplexes is a different type of transaction than selling the average house. Without the necessary expertise, you might struggle through this kind of transaction. And because you are less than familiar with selling duplexes and triplexes, you could also provide your customer less-than-stellar advice.
Will the deal end with added liability? Will you get sued? Unfortunately, neither of these scenarios is off the table.
Now imagine the same scenario but, this time, you are a real estate agent who is an expert with these types of sales in your market area. This allows you to breeze through the transaction with fewer struggles and snags because you know exactly what to look for and exactly what to expect.
Plus, if you are known for your expertise in a specific area of real estate, other agents might prefer to hand you a buyer within your demographic and take a referral fee instead. This is especially true if it is a type of property that they know nothing or very little about. This is just one example of how having a niche can increase your value and, subsequently, raise your income level.
Is it scary?
Some real estate professionals say it is a scary thought to pick and advertise a niche because they feel like they will lose business. I have found the exact opposite to be true. Having a niche actually raises your level of transactions, business, and expertise in the marketplace. Wouldn’t you rather work with a specialist than a generalist for your transaction?
For most people, the answer is yes. If you have a questionable mole, would you rather go to a doctor who is a generalist or one who specializes in skin issues? Going to the latter gives you a greater feeling of confidence because you know that this professional has the knowledge to identify whether the mole is precancerous or of no concern.
Proactive or Reactive?
If you’re not sure where to start, consider if you want to be reactive or proactive?
In other words, do you want to find your niche, or have your niche find you? Your niche may have already found you, even if you didn’t realize it. If your niche has not yet picked you, think about the areas of real estate that you enjoy most. If you are unsure, consider the areas you’d love most to learn about.
Maybe you currently offer services related to residential real estate, but you think you’d like to do commercial real estate instead. If you don’t already know how to conduct this type of transaction, seek to learn it. Take classes to expand your knowledge so you can make this your niche.
Perhaps you work in an area where industrial business is alive and well. You could increase your knowledge of buying and selling buildings used for the production or storage of goods. If you live in a farming community, take classes about the buying and selling of vacant land.
If you’d like more guidance on finding your niche, and overall increasing your real estate business, check out , The Standout Agent.
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Until next time…