Should I specialize?
Many real estate agents want to keep their pool of potential customers as wide as possible. But specializing your business to a particular demographic or property type is not only a great way to stand out among your competitors but it also helps to define your identity as a real estate agent and create a ‘brand’, so to speak. Specializing isn’t necessary and many real estate agents lead successful careers for decades without focusing on a particular niche. But if you’re interested in exploring this career tactic, here are a few things to consider.
Specializing based on your skills set
Look back at your history of sales and identify the transactions that were the most successful. This could mean a particularly satisfied client, a quick sale or a better-than-expected price. Perhaps you’ve had a string of successes in condo resales or have a construction background that helps you assess the quality of fixer uppers. Your strengths may lie in a particular sector of the industry, which you can use to market yourself and encourage more clients interested in those types of transactions.
Specializing based on demographics
A successful client-agent relationship often stems from the agent’s ability to relate to the client, and vice versa. A 30-something agent can better understand the perspectives and life challenges of first-time millennial homebuyers. And likewise, downsizing empty nesters might better relate to a boomer-aged agent. If you speak a second language or have a unique cultural heritage, these are also great demographic specializations to consider.
Specializing based on your interests
Clients and fellow agents will be able to sense when you’re passionate and engaged in your work. If you’re having difficulty identifying a niche, consider if there were particular types of clients or properties that you enjoyed working with the most and why.
Specializing based on the market
If you’ve been getting more inquiries from a certain type of client or about a certain property type, this could be a sign that the market for that specialty is increasing. Specializing in a growing demographic or trend is good for business. But it’s likely that other agents are thinking the same thing, which could mean more competition.