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 in real estate and all fields of business. The fact is the practice is quite lucrative. This article 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 groups of people with particular needs. The idea further pinpoints that other groups of people have different needs. Those who buy a house for the first time have a completely different story from those considering moving to a more prominent place to make room for a newborn.
Niche marketing requires realtors to create the marketing plan, messaging, and services around the specific needs of an apparent 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 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 specific target market, you are like every other realtor. You are a 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. Please read our real estate lead generation article to know more about leads.
How to Pick a Real Estate Niche
Now that we agree real estate niche marketing works, let’s see how it can be done correctly. 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.
A. Research
Given the above descriptions for niche marketing, one might assume that niche research is 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. It 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 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?
Investing in a group of people who are increasing in size makes sense. 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 one that is stable.
Would you make it 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 is 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; many others 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 the odds are against you, you might consider choosing a different niche.
B. Patience
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 a virtue, though.
How patient 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
Two terms frequently used in marketing and business Red Ocean and Blue Ocean. The red ocean refers to a market overwhelmed with competition. Where many people offer the same services and products, it is clear that prospering in such a market will be demanding as you will be just another agent added to the queue waiting for your share of the 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. Unlike the red ocean, the blue one offers a high chance of success.
Unfortunately, the real estate business is red. Very red. 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 who are new to buying without knowing what to do. Their concerns are quite different from those of senior couples considering downsizing.
2. Be the Savior
Now that you know your perfect client and their main problems, it is time to think of how 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:
1. Demographics
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 caring for their children and can’t afford fancy homes? Or are newlyweds with a limited budget trying to buy their first home?
2. Location
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 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 be rooted in 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 luxury properties and attract those looking for glamour and elegance. Targeting high-net-worth individuals may be more challenging as more realtors are inclined to do business with such a real estate niche due to the profitability. Still, you can make a great deal if you know 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 type of property would make you feel better? Would trying to sell tiny homes for people with steady but lower incomes bring you inner satisfaction?
Takeaway
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.