The Value of Choosing a Real Estate
Niche
JULY 30, 2021
It can mean the difference between a full client load and an empty calendar.
Although the advice to choose a niche as a real estate agent is quite common, many new professionals don’t do so. Whether it’s due to the fear of making the wrong decision, a lack of understanding of the market, or a lack of faith in the “why” behind the advice, very few realtors start off strong with a niche.
However overwhelming the choice may be, it’s well worth it. The importance and impact of strategically choosing — and marketing to — a specific real estate niche simply cannot be understated.
What is a Niche?
A niche is a subset of the market you will focus on in your business. Choosing a niche means defining the specific group of people or types of properties that you will zoom in on as a real estate professional.
Endless niche options exist for realtors because niches can be narrowed down based on the types of properties you focus on, on location, or on qualities of a subset of clients. For example, some realtors specialize in working with first-time homebuyers or clients who are actively serving in the military.
Others zoom in on luxury real estate, mountain homes, farms, or oceanfront properties. The options are endless, and there are no wrong answers; what matters is getting clear about what your specialty is and who you serve!
Why Choose a Niche?
Choosing a niche or specifying a niche is often called “niching down” and can feel counterintuitive at first. Anyone in professions meant to serve people, realtors included, naturally tend to believe that the best approach to their business is to help anyone and everyone. After all, why would you want to “rule out” any portion of the population that’s in search of a realtor?
In reality, instead of ruling people out, strategically choosing a niche means you draw the right people in. Choosing a niche helps you position yourself strategically and intentionally to potential clients — the right potential clients for you. When you get specific about who you serve and how to do so, you instantly stand out from the sea of qualified real estate agents in your area.
It can mean the difference between a full client
load and an empty calendar.
Although the advice to choose a niche as a real estate agent is quite common, many
new professionals don’t do so. Whether it’s due to the fear of making the wrong
decision, a lack of understanding of the market, or a lack of faith in the “why” behind
the advice, very few realtors start off strong with a niche.
However overwhelming the choice may be, it’s well worth it. The importance and impact
of strategically choosing — and marketing to — a specific real estate niche simply cannot
be understated.
What is a Niche?
A niche is a subset of the market you will focus on in your business. Choosing a niche
means defining the specific group of people or types of properties that you will zoom
in on as a real estate professional.
Endless niche options exist for realtors because niches can be narrowed down based
on the types of properties you focus on, on location, or on qualities of a subset of clients.
For example, some realtors specialize in working with first-time homebuyers or clients
who are actively serving in the military.
Others zoom in on luxury real estate, mountain homes, farms, or oceanfront properties.
The options are endless, and there are no wrong answers; what matters is getting clear
about what your specialty is and who you serve!
Why Choose a Niche?
Choosing a niche or specifying a niche is often called “niching down” and can feel
counterintuitive at first. Anyone in professions meant to serve people, realtors included,
naturally tend to believe that the best approach to their business is to help anyone and
everyone. After all, why would you want to “rule out” any portion of the population that’s
in search of a realtor?
In reality, instead of ruling people out, strategically choosing a niche means you draw the
right people in. Choosing a niche helps you position yourself strategically and intentionally
to potential clients — the right potential clients for you. When you get specific about who
you serve and how to do so, you instantly stand out from the sea of qualified real estate
agents in your area.
Database Marketing Strategies
The Importance of Your Website as a Realtor
Why is Your Database So Important?
Your database is your key to staying in touch with those who may do business with you or who are likely to give you referrals. If you don’t have a way of keeping in touch with them and engaging with them, they will likely forget about you and their business (or referrals) will go elsewhere.
While many agents think they can keep track of those they need to touch base with by retaining their business cards, writing them down in their planner or simply remembering who they are, most are not organized and disciplined enough to do so. They need to rely on a system that involves not only building their database, but also effectively using that database to develop marketing campaigns that can include email newsletters, text campaigns, phone calls, or social media marketing strategies.
Some real estate agents decide to split their databases into two distinct groups: a lead generation group that includes only those who the realtor is attempting to gain as clients, and a sphere of influence group that includes past clients, networking and referral partners, and others who are likely to pass their names on to others who need a real estate agent. While both of these types of databases are useful, most agents find they get more business from their sphere of influence group than their lead generation group — especially if they are not using a professional, unique lead gen system.
What Mistakes Do Agents Make When Building Their Database?
Many agents suffer from “shiny object syndrome” when it comes to building their database. Instead of playing the long game and focusing on ways to slowly build their database with solid leads and close spheres of influence, they jump on the latest and greatest marketing trend and shift their efforts to a strategy they think will make them some quick sales. Unfortunately, a change in algorithm or other occurrences out of your control can easily put an end to the effectiveness of trendy marketing techniques. When you focus on building a solid database, you’ll insulate your business from external changes and reap the benefits a few years down the line when your list pays dividends and your income skyrockets.
Other agents do a good job of building a strong database, but then fail to utilize it by not creating a robust marketing strategy connected to it. Compiling the names is only part of the battle. The more important component is developing a system that consistently engages those in your database to keep them up to date and interested in what you are currently doing. Your system also needs to have “triggers” to let you know when someone in your database is at a stage where they might make the decision to work with you or pass on a referral so you can follow up with a phone call or an in-person meeting.
The Wrong Messaging
Build and Market to Your Database
As a realtor, your database is your best friend. This is your list of past, current, and prospective clients as well as referral sources who can help grow your business. A basic rule of thumb is that an effective database consists of around 1000 names and contact information. Once you’ve built a solid database, you can market to your contacts through regular email newsletters, texts, or personal invitations to events or open houses. The marketing you do to your database should follow the same guidelines as your social media marketing: keep content informational and helpful rather than salesy. This keeps your contacts engaged with your brand and ensures they will continue to pay attention to what you have to say even when they are not actively looking to buy or sell real estate.
Harness the Power of Social Proof
The theory of social proof states that people are likely to conform and copy the actions of those in their peer group or those they view as experts or who are trustworthy. When it comes to real estate marketing, you can take advantage of social proof by featuring testimonials on your site and social media, soliciting online reviews from those you’ve done business with, and by establishing yourself as an authority on the local real estate market with helpful, informative content. When you harness the power of social proof, you essentially have others selling for you and no longer have to hustle or chase leads.
2. Links to Active Social Media Profiles
Having a strong social media presence shows your
potential clients that you are up to date, active in the
industry, and committed to connecting with those you
work with. To make it easy for your website visitors to
connect with you on social media, make sure you add
links to each of the platforms you are on.
2. Links to Active Social Media Profiles
Having a strong social media presence shows your
potential clients that you are up to date, active in the
industry, and committed to connecting with those you
work with. To make it easy for your website visitors to
connect with you on social media, make sure you add
links to each of the platforms you are on.
Database Marketing Strategies
The Right Messaging
Additionally, choosing a niche allows you to optimize your time and deep-dive into the
knowledge and skills needed to best serve your clients. There are countless nuances,
specialized documents, and small bits of information that are pertinent to any niche, and
trying to serve all niches equally well can quickly lead to burnout.
For example, realtors who specialize in helping military families can serve them best by
learning all there is to know about VA loans and the best local lenders. On the other hand,
if you’re a “generalist” and only take on one or two military clients each year, it’s likely that
you’ll end up doing research on VA loans on the fly without being able to do a true deep
dive. Choosing a niche frees up your time and energy while also allowing you to provide the
very best service to your clients.
While remaining general and marketing yourself as a great real estate agent can work to
bring in clients, you instantly cut through the noise when you position yourself as a specialist
for a particular type of transaction, home, or person. Many people know what they want
out of their real estate experience, so quickly identifying yourself as someone who can
provide that specific result will go a long way in filling your inbox with qualified leads.
Choosing a niche and producing online content focused on that niche will also boost your
SEO considerably, making it much easier for anyone searching the internet to discover
you. SEO for realtors can work as an ongoing source of leads and revenue without
much manual effort.
Once you’ve narrowed down your target market and begun producing content relevant to
them, your web content will rise to the top when prospects search the internet for the
solutions to their problems! As great as it feels to receive a referral or recommendation
from a former client, optimizing your web presence will prevent you from leaving money
on the table when clients without connections go to search for an agent.
Beyond that, niching brings some ease into your marketing and processes. It’s much easier
to create relevant content and provide value when you know who you’re talking to! You’ll
quickly establish yourself as an expert in your niche, even if you’re new to the real estate
profession.
Now that you understand that talking yourself and your accomplishments up on your site is the wrong messaging, let’s take a look at the content that works. Here are some tips on creating messaging that resonates with your target audience:
Content that is helpful. What are the issues your ideal client is dealing with? Are they attempting to buy and sell homes at the same time and need assistance with financing a down payment? Are they struggling to find a home they are interested in due to low inventory? Are they trying to decide if they should relocate or buy a second home now that they are empty-nesters? Identify the pain points in your target market, then address those points through blog posts that you then share on social media and in newsletters that go out to your database.
Content that establishes you as an expert. Those looking for help buying or selling property want to work with the best. To show that you are an expert in your local community and industry, develop content that revolves around neighborhood events, local real estate news, and other industry issues.
Content from experts and past clients. When you use the power of social proof to develop your website content, you let others do the selling for you. Social proof is the phenomenon where others copy the actions of people they see as peers or as trusted individuals. If they see your past clients talking about your high level of customer service in a video testimonial or read reviews from experts in the industry who have worked with you, they will be more likely to choose you as their realtor.
Content that stays ahead of the game. Your ideal client wants to know what’s going on in the industry as soon as possible. They also don’t want to read the same old content on your site that they’ve read on all your competitors’ sites. To address these needs, stay on the cutting edge of the industry and share information your visitors can’t get anywhere else.
Components of an Effective Lead
Generation System
How the Right Messaging Increases Conversions
Additionally, choosing a niche allows you to optimize your time and deep-dive into the knowledge and skills needed to best serve your clients. There are countless nuances, specialized documents, and small bits of information that are pertinent to any niche, and trying to serve all niches equally well can quickly lead to burnout.
For example, realtors who specialize in helping military families can serve them best by learning all there is to know about VA loans and the best local lenders. On the other hand, if you’re a “generalist” and only take on one or two military clients each year, it’s likely that you’ll end up doing research on VA loans on the fly without being able to do a true deep dive. Choosing a niche frees up your time and energy while also allowing you to provide the very best service to your clients.
While remaining general and marketing yourself as a great real estate agent can work to bring in clients, you instantly cut through the noise when you position yourself as a specialist for a particular type of transaction, home, or person. Many people know what they want out of their real estate experience, so quickly identifying yourself as someone who can provide that specific result will go a long way in filling your inbox with qualified leads.
Choosing a niche and producing online content focused on that niche will also boost your SEO considerably, making it much easier for anyone searching the internet to discover you. SEO for realtors can work as an ongoing source of leads and revenue without much manual effort.
Once you’ve narrowed down your target market and begun producing content relevant to them, your web content will rise to the top when prospects search the internet for the solutions to their problems! As great as it feels to receive a referral or recommendation from a former client, optimizing your web presence will prevent you from leaving money on the table when clients without connections go to search for an agent.
Beyond that, niching brings some ease into your marketing and processes. It’s much easier to create relevant content and provide value when you know who you’re talking to! You’ll quickly establish yourself as an expert in your niche, even if you’re new to the real estate profession.
How to Choose a Niche
First, it helps to take the pressure off by remembering that the niche you choose doesn’t have to be the end-all-be-all. It can change and shift over time, you can adapt as you grow and learn, and you can always pivot. Choosing a niche early and tweaking it later on always leads to better results than waiting to niche because of a fear of making the wrong decision.
How to Choose a Niche
First, it helps to take the pressure off by remembering that the niche you choose doesn’t have to be the end-all-be-all. It can change and shift over time, you can adapt as you grow and learn, and you can always pivot. Choosing a niche early and tweaking it later on always leads to better results than waiting to niche because of a fear of making the wrong decision.
To choose a niche, evaluate your preferences and strengths. Think about the clients you’ve helped
so far. Consider the reasons you decided to pursue a career in real estate. Who did you want to
help? Who do you imagine serving?
Many agents start by narrowing their specialty down to buyers or sellers, but that doesn’t
necessarily have to be part of your decision. If you do have a preference on which end of the
contract you’d like to stick to, determine that early on. Getting into the mindset of either buyers
or sellers can help you clarify what your marketing strategy needs to look like and evaluate other
aspects of the current real estate market from a strategic viewpoint.
Then, evaluate your local market and the demographics in your area. Are there lots of beachfront
properties where you live? A high demand for luxury homes? Multifamily housing? Taking stock
of the market requires research into what’s common in your area and what will be profitable for you.
In some areas, it makes more sense to niche down based on demographics. Using tools like
City Data can give you a great bird’s eye view to start with, especially if you’re new to the area
or are still getting to know the general population.
The best course might not be to choose to specialize in what there is a lot of, but rather what
section of the market is untapped or underserved. Do a few quick web searches with location-
specific keywords to find out if anyone in your area is already serving the niche you’re considering.
If you can’t find someone quickly, you’ve likely found a great gap to fill! If there are already a few
big names in that niche, consider how large that slice of the market is and whether you can still be
successful with a bit of competition.
Consider your own background and skills. Think about your current network and the experience
and connections you already have, and define your niche from there. For example, if you’ve
served in the military, you’ll have a leg up in earning the trust of veterans. If you’ve found your
love of the real estate world later in life, you could define your niche as “retirees” or “empty
nesters,” both of whom often find themselves ready to downsize or relocate. You might consider
focusing on employees who are being relocated by their companies and seek out partnerships
with large headquarters or office buildings or on people looking to purchase real estate as an
investment property instead of a primary residence.
Each of these options corresponds to different skills and personalities. Your required level of
income will play a role in your decision, as will your comfort level with varying types of marketing
and promotion. Use your connections, background, and true desires as your guide! Part of the
beauty of choosing a niche is picking exactly what you get to do. Make it something you enjoy!
Marketing to Your Niche
The main benefit of identifying your niche is to better understand and market to your target
audience and clients.
To choose a niche, evaluate your preferences and strengths. Think about the clients you’ve helped so far. Consider the reasons you decided to pursue a career in real estate. Who did you want to help? Who do you imagine serving?
Many agents start by narrowing their specialty down to buyers or sellers, but that doesn’t necessarily have to be part of your decision. If you do have a preference on which end of the contract you’d like to stick to, determine that early on. Getting into the mindset of either buyers or sellers can help you clarify what your marketing strategy needs to look like and evaluate other aspects of the current real estate market from a strategic viewpoint.
Then, evaluate your local market and the demographics in your area. Are there lots of beachfront properties where you live? A high demand for luxury homes? Multifamily housing? Taking stock of the market requires research into what’s common in your area and what will be profitable for you.
In some areas, it makes more sense to niche down based on demographics. Using tools like City Data can give you a great bird’s eye view to start with, especially if you’re new to the area or are still getting to know the general population.
The best course might not be to choose to specialize in what there is a lot of, but rather what section of the market is untapped or underserved. Do a few quick web searches with location-specific keywords to find out if anyone in your area is already serving the niche you’re considering. If you can’t find someone quickly, you’ve likely found a great gap to fill! If there are already a few big names in that niche, consider how large that slice of the market is and whether you can still be successful with a bit of competition.
Consider your own background and skills. Think about your current network and the experience and connections you already have, and define your niche from there. For example, if you’ve served in the military, you’ll have a leg up in earning the trust of veterans. If you’ve found your love of the real estate world later in life, you could define your niche as “retirees” or “empty nesters,” both of whom often find themselves ready to downsize or relocate. You might consider focusing on employees who are being relocated by their companies and seek out partnerships with large headquarters or office buildings or on people looking to purchase real estate as an investment property instead of a primary residence.
Each of these options corresponds to different skills and personalities. Your required level of income will play a role in your decision, as will your comfort level with varying types of marketing and promotion. Use your connections, background, and true desires as your guide! Part of the beauty of choosing a niche is picking exactly what you get to do. Make it something you enjoy!
Marketing to Your Niche
The main benefit of identifying your niche is to better understand and market to your target audience and clients.
To effectively market to your niche,
first get clear on who your ideal client
really is. Many professionals call this
your ideal client avatar. The more
specific you can get, the better —
that’s the whole point of the niche!
Some types of real estate niches will
give a head start on the client “avatar,”
but think beyond what you’ve already
defined.
For example, if you’ve defined your niche as “first-time homebuyers,” consider whether your
ideal client is moving from in-state or out of state, what their budget range might look like, and
how large of a home they might want to look for. Get a picture of them, as clear as possible,
in your mind. Defining this with specificity is the only way to ensure you’ll be able to market
effectively to your niche!
From there, brainstorm how you can provide value and solve problems for that ideal customer.
In the first-time homebuyer example, the value you provide might center around basic education
on real estate terms, debunking common myths, and outlining general processes. Marketing to a
very specific client avatar doesn’t mean you won’t ever take on clients who don’t fit that exact
description; it simply means you are getting your name in front of more people who do share
those qualities and whom you can help best.
The more content you put out there that helps your ideal client in particular, the more you will
establish yourself as the go-to professional to help that subset of clients! That means more leads,
more sales, and more referrals, all while zooming in on the exact real estate services you truly
enjoy providing.
When it comes to establishing your expertise, serving clients with excellence consistently, and
marketing yourself effectively, nothing beats the clarity and specificity of defining your niche.
Reach out to industry experts, like those at Luxury Presence!
For example, if you’ve defined your niche as “first-time homebuyers,” consider
whether your ideal client is moving from in-state or out of state, what their
budget range might look like, and how large of a home they might want to
look for. Get a picture of them, as clear as possible, in your mind. Defining
this with specificity is the only way to ensure you’ll be able to market
effectively to your niche!
From there, brainstorm how you can provide value and solve problems for
that ideal customer. In the first-time homebuyer example, the value you
provide might center around basic education on real estate terms, debunking
common myths, and outlining general processes. Marketing to a very specific
client avatar doesn’t mean you won’t ever take on clients who don’t fit that
exact description; it simply means you are getting your name in front of
more people who do share those qualities and whom you can help best.
The more content you put out there that helps your ideal client in particular,
the more you will establish yourself as the go-to professional to help that
subset of clients! That means more leads, more sales, and more referrals,
all while zooming in on the exact real estate services you truly enjoy providing.
When it comes to establishing your expertise, serving clients with excellence
consistently, and marketing yourself effectively, nothing beats the clarity and
specificity of defining your niche. Reach out to industry experts, like those at
Luxury Presence!
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