Do You Need a Niche in Real Estate?

I love the question, "What's stopping you?" Sometimes we already have a niche developing right in front of us and just haven't recognized it yet.

I’ve tried my hand at just about everything over the past (almost) 20 years. I know some people don’t think that’s the best approach, but I went with whatever opportunities came my way early on and just kept going. Now, thanks to that experience, I can offer solid advice on a wide range of real estate topics.

Hi Paula= you have to find what works for you where you are. Liz and Bill Spear early on found their niche with patio homes and it has worked. Some farm an area, ofen where they live, and have great success.  

Paula, you are a perfect example, sometimes YOU don't have to identify a niche, it identifies YOU.   I thought I wanted to do lofts and condos downtown, but parking became a disaster, and moved to relocation and acreage properties.  That worked out very well.

Good morning, Paula... my niche is "working by referral." I farm my data base like mad and as a result 90% of my business has been repeat and referral for more years than I can count. Within my niche, I do everything... first time buyers, listings, relocations, luxury, etc. I like the variety.

I could have used a niche, haha.  Throughout my career, I merely took what came my way.  My career seems to be winding down quickly, though, so it's probably too late for me to have a niche, haha.  I love the niche that you have, especially since I love seeing things kept beautiful or made beautiful again.

Good evening Paula,

Sometimes a niche finds us as it did for you! There are so many niches out there to be discovered.

Fascinating history, Dr. Paula! I think the best niches are always born out of actual passion and personal experience, not a textbook or guru's formula. Moving that 100-year-old farmhouse? I can't even imagine! Great advice here.

I've filled many needs in my career; I've specialized in foreclosures when they were prevalent, the miliary and corporate relocation was my thing. It has evolved into being the Neighborhood Expert in my own community, and assisting Seniors with their specialized needs. Find the need and fill the niche!

I have a few different niches- though not all are created equal. One niche has become more of a thorn in my side so a lot depends on the what you hope to achieve. 

When I first entered this business- I knew I wanted to focus most of my business on certain neighborhoods. A couple of these neighborhoods included HDFC Co-op's. These are income restricted co-op apartments. I became an expert in this type of building. My issue was not with the buyers or the seller's but rather the co-op boards themselves. Some of these co-op boards can reject 75%-80% of buyers. Given how lengthy and difficult the co-op application process is- combined with policies that are not public- working with buyers in his market requires a much more significant time commitment- often for lower sale prices. So not only did I need to figure out in advance what the income restriction was, whether they accepted family gift money for the purchase and up to what level (i.e. 100% gift of the purchase price vs. 10% allowed), the flip tax (which could easily be 30% of profits when an owner sells) and how it was applied, whether sublets would be permitted at any point, etc - but only then to have other blockades in place- i.e. the board won't release due diligence information, etc.

Having expertise in this niche has resulted in management at my brokerage advising agents to speak to me before taking on HDFC related business. I am happy to have these conversations- but I no longer work with these buildings directly anymore as they are just an energy vampire. 

There are some rare exceptions as I met with an owner in one of these buildings not too long ago from a building that happens to fall in this category- but acts like a traditional co-op that happens to have an income restriction (formula based- the buyer could make up to around $800k/year) - and I expect the apartment to sell for somewhere in the $1.8m-$1.9m range.