Finding niche opportunities can be a lucrative marketing strategy for both new and experienced real estate agents. By actively choosing to specialise in a particular market, you will sharpen your knowledge of that property type and create more opportunities to build on your strengths. Servicing a niche can also increase your perceived value as you become the ‘go-to agent’ for a certain group of people.
A niche real estate sector can be defined in a number of ways. It could come down to values held by the seller or target buyer, demographic characteristics such as age or income, or property features such as size and location.
If you know who your potential buyers are and what’s important to them, you can frame your ads and conversations in a way that matches their needs.
Finding a niche based on values
Success in real estate hinges on your ability to deal with people, so it makes sense to think about who those people are and what makes them tick.
An emotional seller, or long-term owner, may feel strongly about finding an agent and buyer that share their values. These values could be anything from self-sustainability to living in a tight-knit community.
As you know, buying a home is a highly emotional decision. In the immortal words of Darryl Kerrigan in the classic Aussie film, The Castle, “It’s not a house, it’s a home.” If a potential buyer shares some of your vendor’s beliefs about what’s important, they’re more likely to appreciate any homely touches the current owners have made.
Look at demographics
A demographic niche can be determined by a number of factors such as income, education, occupation, age, family size, ethnicity, or gender. However, everyone aged 40-60 is not quite a niche. Dig deeper and use a set of demographic characteristics in correspondence with values.
Demographics can often tie-in with motivation for moving. A growing family could be the perfect buyer for a downsizing couple because they’re valuing space at different ends of the spectrum.
If you’re bilingual, you could consider working with customers who speak English as a second language. They may have additional needs you can cater for, such as translation. Or, if you’re working as a buyer’s agent, your client might have culturally specific requirements and preferences that you can cater for.
Define your location
Inner city or rural? Waterfront or mountain views? Some agents build their entire personal brand around the area they service. To successfully hold a niche in a small area, you’ll need local expertise and a good understanding of the community in which the properties sit.
Just like demographics, a location is often associated with other characteristics and should fit within a comprehensive understanding of your market.
How to pick a real estate niche
Brainstorm some real estate niche ideas. You could look back at properties you’ve sold in the past, analyse current listings on the market, or imagine who your ultimate vendor would be. Now, look down the list and see if there is one that naturally aligns with your values.
Ask yourself these questions:
How much do I want to make?
How big is this niche?
Who’s already servicing it? Is there room for me in this market?
Do I have the resources required?
Does it match my skills and strengths as an agent?
With your niche marketing strategy in mind, you can begin targeting your efforts to meet that niche.