When it doubt.......Niche it out.

I have developed a strong geographic niche over the past 37 years however I am willing to drift out of it on occassion for the right property and the right person.

You Guys are so correct. Im the same way sometimes. Like Ashely said, "It is hard to turn away business." I try to focus on multifamily properties under 5 units. Sometimes I get offers for other business, so it can be hard not accepting them. My goal this year is to narrow my nitch. So far so good.

We started that way working a niche in neighborhoods nobody else wanted.  Grew from there.

Brian, it's interesting to see your post this morning after reading about Seth Godin's upcoming webinar about niche business in the KCMBlog. It makes sense to me!

Word to the wise - BE CAREFUL.   A great deal depends on where you are.  Some markets around here you can still get away with niche marketing.  However, those markets have been working very hard to keep competition OUT.  To the point where their local agent, local agnet. LOCAL AGENT!!! mantra is wearing very thin.  These are hot spots in our county market where homes sell like hotcakes for premium prices and the ONLY thing the agent appears to be bringing to the table is that they live in that village or town. My bet is that these agents are going to be in serious trouble down the road because they don't bring much of anything to the table and they can't hold back the hungry hoards of agents living just outside theirr community that see fruit ripe for the picking. Its not gonna last. 

All of that has broken down in the three big cities that surround our area as well as the larger towns.   Try doing that in White Plains NY...It won't work. Period.  I grew up in White Plains and have connections galore, but so many brokerages and agents have descended like locusts on White Plains, that the days of working in that one city are gone.  Agents who used to make a great living by keeping a small but deep footprint in those communities have been forced way out of their comfort zones geographically.  If you live and work in one of those cities or towns, you have to expand your footprint or their simply won't be enough business. 

Niche marketing can work, but not in every place and you have to analyze the market carefully before you spend hard-earned money and shoe leather on them. 

Hi Brian...I wish all of the agents that come from 1.5 to 2 hours away to sell a piece of property here at Lake Anna would read this post.  Chances are they would agree hypothetically but it seems once they have someone ask them to show them half million dollar homes or higher they suddenly become experts on Lake Anna.  Often this is a place they have never set eyes on.

As an agent that moved here from Northern Virginia I quickly realized that I had a learning curve.  At least I was in an office surrounded by agents with experience that helped me out.

The agents that work Lake Anna are knowledgeable (for the most part) about the properties here and this is our niche.  Most of us do not wander off to what we think are greener pastures that are unknown to us.

It's not only important to have a niche and learn everything you can about it but it is also important to recognize when you are venturing into areas where you are ill equipped.

Thanks for the post.

Kate

It all depends on your desires and expertise.  I sell a lot of different homes in different counties and it is from the high end to the low end.  If I had not, my business would have been greatly curtailed.  Now with the market getting better, i agree that some specialization might work better and stay closer to home base.  The switch is on.  With lower inventories it is back to farming and walking the neighborhoods.

I decided to specialize in Puerto  Vallarta Mexico marketing to baby boomers and retirees and have never looked back. While things were in the toilet up north, boomers were looking to the future and their retirement in a tropical paradise and by the way don't believe all the negative stuff you hear about in the media. Most of it is grandstanding to keep all these boomers and their money at home.

Niche marketing has always been here. We used the word farming at onetime but that was niche marketing. Being able to identify with the buyers & sellers of a certain persuasion is always an asset in marketing myself.

I think it really does depend on your market. There might be a ton of other agents focusing on the same niche.

Hi Brian,

Getting to know a market and building your brand there is VERY important.  I coach my agents to establish a niche market close to home for farming and be available in a broader market for assisting buyers.  Clients are more sophistcated than ever, and sad to say but sometimes know more about markets than the clients they represent.

Best of GREAT success to you this year!

I agree, and I encourage new agents to choose a niche as soon as they figure out what they love best. However, small town agents don't always have that luxury - there simply aren't enough buyers and sellers in one niche to sustain a career.

Brian,

For the most part I think you're right.  There are definitely agents who are niche agents.  Although I think may successful agents have more than one niche.

Niches are great as you can establish yourself as the expert.  Key to it is actually BEING the expert. ;)

Every business owner is in it for the money, aren't they? That said it depends on who and where your target market is located. Being an expert is easy, convincing consumers that you are an expert is a challenge, so your niches to riches is dependent on your communication skills and experience, doesn't it?

I believe that selecting your opportunities is essential to being successful, because whether a property is $100k or $1m, the process to close is the same, yet the income earned is substantial, so it depends on your confidence to perform or execute and your comfort level or lifestyle. 

My favorite NICHE would be the RICH NICHE. In reality, we have to have several niches in order to survive and stay ahead.

Everyone has a niche area that they are good at. However, if you specialize in only one thing, you will limit yourself when the market in that niche is at a low. I for one, work the new construction and land development arena. After the market fell in 2008, I broadened to working bank REO properties. I know some REO agents who totally dominated the market during those years, but now, the market shifted again, and REO properties are down drastically.

Whether you specialize in acreage or new construction, or luxury homes, there will always be the bread & butter business. That would be regular resale homes and buyers. Almost every one of us has sold one of these at one time or another, and those can be what sustains you when your niche area is not doing so well.

I am in favor of having several "niches".  You just have to put out the effort and expense to stay a player in each one.   That keeps you from being too narrow in your approach to business and still helps you create an identity and reputation that will generate business. Take your pick: Country Club communities, Luxury estates, Equestrian properties, favorite local commumities, empty nesters, first time buyers, new construction,or even by occupation - doctors, dentists, lawyers, teachers, firemen, police officers.....on and on.  Just be persistent, patient and provide superior service.