6 Profitable Real Estate Niches — And Why You Should Choose One Today
Carving out your own niche can be valuable in any business, but for real estate agents, it can be particularly beneficial. Not only do real estate niches shrink your competition, but they also allow you to become a true expert in your field.
Think about it this way: The real estate business is a pretty big industry. No agent — no matter how much time they have on their hands — can know it all. But if you zero in on a particular niche market? That makes it much easier to really know your stuff — not to mention demonstrate that expertise to a potential client. The better you know a smaller market, the better you can use real estate niche ideas to your advantage.
If you haven’t chosen a niche yet, it’s not too late.
Here are a few real estate niches you might consider focusing on
1. Luxury properties.
Zeroing in on luxury real estate is obviously a good option. With higher price points come higher commissions, right?
Just remember that most high-end buyers in the real estate industry want high-end service to go with those big price tags, so be ready to put in the work. Expect to devote a lot of time to your luxury clients and always be responsive.
Since many luxury buyers are purchasing from afar (it may be their second home or maybe they’re away for work), you will often need to do the legwork, too — touring homes, visiting properties, etc. — and report back. You’ll be their eyes and ears, as they say.
2. First-time homebuyers.
If you pride yourself on your ability to guide, explain, and advise, then working with first-time buyers is a great niche marketing route to explore. These buyers require a lot of hand-holding from their real estate agent and will need plenty of guidance both during the house hunt and on the financial side.
Working with first-timers can also bring you a lot of personal satisfaction. Seeing young families put down roots and make such a big move in their lives can be quite gratifying — and not many people get to say that about their careers.
3. Real estate investors.
In the world of real estate niches, this can be a great one to focus on solely due to the repeat business you get. Most real estate investors — whether they focus on owning a rental property, fix-and-flips, multifamily homes, or more — typically won’t stop at one. They may buy two, three, even 10 properties a year, so if you’re able to impress them and add value to the equation? That’s serious business over the course of your career (and theirs).
Just make sure you have a good grasp on your local market, the competition from other local real estate professionals, as well as the ins and outs of investment property deals, including how to buy at auction or a sheriff’s sale, what financing looks like, and how to deal with liens and other title issues (which often come up in these purchases).
4. Vacation homes.
If you’re located in a coastal market, near the mountains, or somewhere with lots of tourism, vacation homes can be a good niche market to set your sights on. You can even help buyers purchase properties they intend to rent occasionally on Airbnb or VRBO when they’re not in use.
Just study up on the best beaches and local hotspots, and gear up for a lot of distant buyers. Like those luxury clients, many will be buying from afar, so you may have to do a lot of the heavy lifting.
Relocating buyers need a lot of help. They’re often buying from very far-off locations, and to make things worse, they’ve only got a certain amount of time to get it done. This is where a good real estate agent can really make a difference. You can vet properties, make recommendations for local utility providers and movers, and even go the full nine yards and attend their closing appointment on their behalf (if you have power of attorney, of course).
6. Military buyers.
Military homebuyers are in a similar boat as relocators. Not only are they moving far distances, but they only have so long to do it, too. In many cases, they might be using a VA home loan as well, which complicates things even further.
If you have one or several military bases in your area this is one of those real estate niches that can really pay off. Make sure you understand the ins and outs of VA financing first (as well as what properties qualify).
One final note about real estate niches
Specializing in a single niche can be great for your career, but it’s not the only way to take your business to the next level. Check out our real estate agent resources for more guidance.