Know Your Niche!Posted by Peter Narodny on Tuesday, July 3rd, 2012 at 2:33pm.
NICHE MARKETING FOR REAL ESTATE AGENTS
As a real estate agent you know that you market to a certain person in order to sell a home quickly. Every time you write a copy or home description you are trying to seduce as many people as possible to view the property details. Each home gives you the tools needed to appeal to the type of personality that would be happy in that home. Whether it is a hikers paradise with trails right out the front door, an equestrian property with a barn, or a luxury home on the water with amazing views, good marketing uses these tools to single out the buyers who would be most interested. To know the location and kind of community you are working in is essential to be successful. Working in Marin for over 35 years the Naordny’s have all but perfected their niche. Focusing on single-family residential homes in Marin they have created a successful strategy of online and print advertising. Working in such a special place and knowing their clientele has allowed them to thrive in such a competitive market. Being well connected and communicative with both buyers and sellers in Marin has given them the confidence to do their jobs with a straight forward and to the point attitude. They know what is available, for how much, where, and what kind of person or family would be interested in all the exact details.
To learn more about the kind of niches you should be prepared to handle or exploit, the following list describes a few specific niches that can often be overlooked.
1. Luxury Homes- A market requiring specialized skills and money.
The luxury home niche looks quite inviting, with the high home prices usually generating correspondingly high commissions to the agents. They do result in a higher per-transaction commission, but don't think that there aren't some trade-offs. Luxury homes require special marketing venues that generally require larger investment on the part of the listing brokerage. Overall, the percentage of net profit after marketing can be similar to lower priced homes. It's a great niche for some though.
2. Resort and Vacation Homes
If you're lucky enough to live in an area that appeals to vacationers and those looking for getaway properties, this can be a very successful niche market for you. With most of the prospects coming from outside the area, a good internet marketing strategy can position you as the area expert and cut down significantly on the competition. Providing usable information to out-of-area buyers will get you business, and at some point they'll likely be your sellers also.
3. More and more Singles are buying homes every year.
With almost 90 million unmarried and single Americans, this is a group you just cannot ignore. 55 Million households are headed by unmarried individuals. Women make up about 54% of this group according to the Census Bureau. Real estate professionals that can embrace the differing needs of these heads of households will surely find a wealth of opportunity.
4. Baby boomers, or Seniors are a huge market influence.
Different income considerations, as well as sometimes special housing requirements, make this group a great niche market. Determine their needs and develop marketing and services that are tailored to them. Look into the SRES® Designation (Seniors Real Estate Specialist) to position yourself as a specially trained professional serving the needs of this age group.
5. Condominium buyers and sellers offer a great niche opportunity.
Nationally, there has been a huge growth in the number of condominiums in the last decade. Particularly in resort and vacation communities, an enterprising real estate person can capitalize on this specialization.
In many cases, the owners use the condo only partially and wish to rent it out at other times. This provides another area in which you can be the expert helping them to select the most rentable properties. It can also lead to referrals to management firms or to your own business.
6. Helping first-time buyers is fulfilling and profitable.
First-time buyers are new to the entire process, with anxieties about financing, inspections and just about every facet of the transaction. They want and need our help. It's a great feeling helping them into their first home, and this niche market is a large one. Develop marketing and transaction information materials that will help them to understand the process and view you as the expert they need to carry them through it. They'll be a huge source of future repeat business and referrals.
7. Hispanics are a growing home-buying group.
The Census Bureau places Hispanics as the nation's largest minority group, with more than 42 million in the United States.With a median age of 27 years, this group is highly likely to comprise a large chunk of the first-time home buying market. Look at marketing venues that will attract this group and determine their needs and fill them.
8. For Sale By Owner Properties (FSBO's)
Don't discount the for sale by owner property as not worth your time. These sellers will, in many cases, find that they really don't have the ability to successfully market their home and decide to list with a real estate professional. Structure a marketing plan around helping these sellers to learn what they need to know to market their property and they will frequently see the complexity of the task and make a decision to list. If you've been their adviser, you'll likely get the business.
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