What's Your Niche Market

By
Education & Training with The Lones Group, Inc.

The Lones Group, Inc.

What's Your Niche Market

Today, I wanted to talk about niche markets. A niche market is defined as a smaller part of a larger market with its own defined area of specialization.

The perfect example of a niche market in real estate is waterfront property. I happen to live on a lake and I have learned a thing or two about lake front living that I had no idea about before I became a lakefront property owner. I've now been here for over 14 years and in that entire time period I would say I have probably received maybe half a dozen pieces of really good marketing information from a real estate agent stating that she knew a little bit about lakefront properties.

However, the interesting thing, is that she stopped sending out her mailings. I have no idea why she stopped but I was starting to really enjoy the good quality content she was sending. What is fascinating to me is just how everything in life seems to be about timing and if I were thinking about moving now or in a year or so she would no longer be top of mind because she stopped. Naturally if I were getting regular mailers from an agent who said they were a lakefront real estate expert I would call that person but not now because all contact from her has ceased. So that person, the one person that was in contact with me now is not. And I always tell people that the key to success in real estate is about staying in touch with people and delivering a consistent message.

So what is your niche market, do you have one? What are you good at, what is your area of specialty or interest? Whether you are waterfront expert or an equestrian expert, having something that you know more about than anyone else is really, really important and compelling to potential clients as there is nothing like knowledge and confidence to attract people to your business.

When choosing a niche market, you must examine the market for opportunities. For example, there are a lot of opportunities right now in many markets with absentee owners. Absentee owners do not live in the property and often live a few hours or a few states away. Absentee owners often sell their existing properties and upgrade to bigger investments which is a great way for them to maximize their investments. It is also a fabulous way for any agent to help these sellers both sell and buy. This is a great opportunity.

There are so many niche markets in real estate. The problem many agents face is that they are generalists and often find it hard to get new leads. And while being a generalist is good because you have a broader base of potential clients who might be interested in working with you, it does not mean they will. You have a much better chance of having someone call you if you are an expert or a specialist in the type of real estate they are interested in buying or selling.

Imagine you are a lakefront real estate expert and you consistently market to me because I live on the lake that you specialize in. If you prove to me through your mailers that you knew a thing or two about shoreline issues and living on a lake versus there is a pretty good chance I will call you when I go to sell my property.

What I love about niche markets is that they provide a fantastic opportunity to showcase an agent's area of expertise. When I think about niche markets, I think about surgeons and doctors. You do not go to your family doctor when you need knee surgery, you go to a specialist. In any business, there are those people who are generalist and those that are specialists. I really encourage you to think about finding an area of specialty so you can leverage your knowledge in that area. Once you have chosen your niche market you then need to share your knowledge to those potential buyers and sellers out there that are in the market to do something within your niche.

It is never too late to create a niche market. I have agents that have been in the business for twenty-five years who have come to me and said, "you know, I just want to do something different. I want to take it to the next level." I will often say "have you ever thought about creating a niche market?"

I really encourage you to think about it, to research it. There are so many niche markets out there that I do not have enough time on this week's zebra report to list them all. I really encourage you to think about where you have lived, think about things that you are interested in, things you have special knowledge about. Perhaps you have always wanted to be a luxury agent or an equestrian specialist, why not do that now.

Thank you for joining this week's zebra report and I look forward to talking to you next week. Don't forget, niche markets are how a lot of agents get rich.

 

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings nearly three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

The Lones Group, Inc.
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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Lise Howe 05/25/2020 06:01 AM
  2. Roy Kelley 06/02/2020 01:00 AM
Topic:
Real Estate Best Practices
Tags:
direct mail
real estate coach
farming
niche marketing
branding
niche
specializing
building wealth
real estate
denise lones
the lones group
geofarm
zebra report
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Rainmaker
538,620
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

I so agree with you, Denise Lones .  You don't have to only handle those in your niche market.  For example, I've decided to focus my marketing on Pebble Beach, a very upscale market of multi million dollar homes. The result is that I get calls from those who aspire to living there, but may have to settle for neighboring communities/towns. And I can still help them there.

May 21, 2020 12:06 PM #1
Rainer
574,172
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Like they say "Riches are in Niches"

You have a much better chance of having someone call you if you are an expert or a specialist in the type of real estate they are interested in buying or selling.

May 22, 2020 04:04 AM #2
Rainmaker
702,765
Peter Mohylsky. The Santa Rosa Beach Expert
PrimeSouth Properties - Santa Rosa Beach, FL
THE BEACH IS OPEN

Consistent content and contact is very important to staying top of mind in any bodies life

May 22, 2020 04:09 AM #3
Rainmaker
382,039
Jeffrey Richman
Immediate Home Solutions - Waxhaw, NC
Creative Real Estate Specialist

Being in a niche and getting known for its specialization is certainly what you want.

May 22, 2020 04:18 AM #4
Rainmaker
3,155,587
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

My niche was new construction, then 2008 came and it dried up, so my niche became bank owned homes. When things go good again, there was not enough new homes being built to just sell new homes. So now my niche is great service, i sell new homes, old homes, bank owned homes, but the key is service. In a world of discounts, it makes good service really stand out

May 22, 2020 06:05 AM #5
Rainmaker
93,789
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
Relocation to NW AZ with elbow room & more freedom

Niche market is aligned to your ideal customer. Great points Denise Lones 

May 22, 2020 07:47 AM #6
Rainmaker
443,524
Catherine Ulrey
Keller Williams Capital City - Salem, OR
Equestrian and Acreage Property Specialist

My niche is equestrian and country homes.  I can tell you that having the niche in the last real estate crash saved my bacon!

May 22, 2020 10:18 AM #7
Rainer
367,527
Raymond Denton
Homesmart / Evergreen Realty - Irvine, CA
Veteran Friendly Realtor®

I have two niches, Denise.  One is geographical and the other is subject oriented.  I farm a community in Mission Viejo, Casta del Sol, and Veterans.  Casta del Sol is a 55+ gated neighborhood, so, in addition to having to learn all the models, I have to know everything unique about the community and also State and Federal guidelines for 55+ communities.  With Veteran's, I need to know how the VA Guaranteed Loan program works better then most Loan Officer's, so I could create the RPA as per VA's guidelines.  It took me two months of studying VA's lending guidelines before I felt comfortable with the special home loan program, and I still review them, everyday.  You'd be surprised how many Realtors and Loan Officer's provide Veteran's with incorrect information about how to use their benefit to buy a home.

May 22, 2020 12:02 PM #8
Rainmaker
2,844,546
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Coming back to revisit this one just out of curiosity And some of the answers are definitely interesting!

May 22, 2020 10:54 PM #9
Rainer
26,226
Realty Pack
Realty Pack - Bel Air, CA
Real Estate Blog

Hello, Denise Lones. Thank you for the great article. I agree it's really important to stay in touch with your past clients. 

May 23, 2020 04:09 AM #10
Rainmaker
1,819,654
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Congratulations on your well deserved feature- I am trying to develop a niche so this is a timely piece to read

May 23, 2020 04:41 AM #11
Rainmaker
3,339,561
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Denise I have had two niche markets for the past 23 years in the greater Los Angeles area. One of course is vacant land a very special niche and the other international buyers and sellers. Both require  patience of a Saint:)Endre

May 23, 2020 11:37 AM #12
Rainer
160,431
Adam Feinberg
ANCHOR ASSOCIATES - Manhattan, NY
NYC Condo, Co-op, and Townhouse specialist

While it's great to have niche specialities- make sure you also have some diversification built in for risk management. While my niche is Upper Manhattan, my practice spans all of Manhattan. I don't know how Covid 19 will change consumer preferences. Consumers may choose to spurn neighborhoods that require subway usage to get to work. Covid 19 might be the ultimate example of tail risk, but never underestimate how one change, one event, one whatever can change your entire business.

May 23, 2020 11:51 AM #13
Rainmaker
1,905,057
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

This is also why so many fail in Real Estate. The attempt to operate as a Generalist 

May 23, 2020 01:13 PM #14
Rainmaker
628,349
John Marshall - FORE!
LoKation Real Estate - Cherry Hills Village, CO
Specializing in Golf Course Properties

This is great stuff and I have been a big believer in niche markets for 20+ years, the greatest thing about niche markets are you get to choose your niche, which means you get to select who you want to work with, you get to attract the type of clients you really want to work with.

The leaders in any industry, not just medical fields all specialize - I have a motto  -  "A good salesperson will dance to their customers music, but a great salesperson will write the music that attracts the partners they wish to dance with!"

May 24, 2020 07:37 AM #15
Rainmaker
5,764,554
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Congratulations on your feature recognition.

Thank you very much for sharing your experience and your advice.

May 25, 2020 06:07 AM #16
Rainmaker
2,133,667
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Denise Lones - this post is spot on and worthy of a feature.  It is always better to specialize.  Less is more.

May 25, 2020 10:10 AM #17
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Denise Lones

CSP, MIRM, CDEI - Real Estate Coaching & Branding
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