How A Niche Market Can Make You Rich
Specializing in a niche market has made many real estate agents rich. It’s always been my opinion that one of the beautiful things about a career in real estate is the many different opportunities there are to make money. Once you get your real estate license and learn the basics about how the industry really works, you can carve out a niche market and from there the sky is truly the limit.
Why do I say get rich in the niche? Because when you specialize in a given area you become the expert in that area. And you want to market yourself as the local expert in that market. When clients are looking to put their hard earned money in a particular property, they want to work with the real estate agent that knows that product inside and out. So let’s look at some niche markets in real estate that can make you rich. Keep in mind this is just a short list. There are endless possibilities that you can pursue by taking one of these niche markets and narrowing it down even further.
First Time Home Buyers
This is a fun group to work with. They are excited about buying their first home and they put a great deal of trust in you, their agent. They are also usually nervous buyers too, so you need to be able to put them at ease. Do a great job with your first time home buyers and you will get referrals from them.
Luxury Homes
This is the one that seems very attractive to agents because of a couple of things. First, you get to look at some gorgeous properties. Second, the paycheck is much bigger so you don’t have to sell as many homes to make a good living. But keep in mind the pool of clients is smaller so you need to make sure you can capture this market.
Commercial Property
This segment of the market is a whole different animal. It takes longer to close transactions but the payoff is usually very big. Make sure you can ride the ups and downs of the income wave. Emotion is pretty much taken out of the equation with commercial sales. It comes down to dollars and cents. Make sure you have a good handle on how financials work if you decide to specialize in this niche.
New Home Construction
If I was to start my career all over, this is probably the niche I would target. The benefit of the new construction niche is that the sales consultant in the model home takes care of most of the paperwork. Sweet! But you still need to know your stuff and you need to be able to convey to your client that you are his or her advocate. And you need to know when you can negotiate that builder price. To be successful in this niche you need to have a good relationship with a lot of local builders and you need to know the communities inside and out.
Farm and Ranch
There is a lot of opportunity in the Farm and Ranch market here in Texas. But you really need to know your stuff if you are going to sell property in this one. The property being sold in Farm and Ranch is usually wide open spaces without the traditional survey. So know what you are selling. You also need to make sure that if you are representing a buyer, that the property will suit the needs of your buyer. Is water available? If not, can you put a water well on the property? What about easements and right of way to the property? My advice to newer agents, or even seasoned agents, that are looking to enter into the Farm and Ranch business, is to team up with an agent that has sold in this market for many years and is willing to mentor you.
Condos and Townhomes
This is another great niche market for those of you who live in or near large cities and towns. The contract is a bit different for condos from the 1-4 Family contract, but it’s not difficult to learn. (For townhomes the contract is the same as single family.) If you specialize in this area you will need to know the market because your buyer client will be interested in several communities. Condos and townhomes will have association fees that can be quite expensive. Know what they cover and make sure your client knows the monthly fee so they can figure that into the budget.
Vacation Properties
Depending on what area of the state you live in, vacation properties can be a great niche to target. Geographic areas in Texas that would lend itself to having ample inventory of property would be:
- Coastal areas such as Galveston and South Padre Island
- San Antonio
- Texas Hill Country
- Lake Travis and Canyon Lake
Similar to vacation properties would be areas around large universities that allow AirBNB rentals.
Investors
Last but by no means least is the niche market of Investors. This can be a loyal group if you do a great job for them. For investors it comes down to ROI (Return on Investment). And that just means that they want properties where they can make money through cash flow and asset appreciation. Investors typically look to build a portfolio of properties and that can result in multiple transactions.
Hopefully this list has sparked some ideas for you moving forward. Real estate is never dull as long as you keep expanding your knowledge and find an area that really interests you. Don’t settle for just what comes your way. Set out on a mission to create the business of your dreams.