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How to Choose Your Target Market and Find Your Niche

Posted by Suzanne Drace on October 26, 2016 at 1:36 PM

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Most real estate agents are overwhelmed with opportunities to advertise and promote their personal brands to the communities they serve, but deciding exactly where to pinpoint those efforts is not always as easy as you might think.

There are more than a dozen different factors that can contribute to whether or not a specific segment of your community is a good fit for your skills and experience.

Knowing where to focus your energy when it comes to local marketing can save you thousands of dollars and hours of your time.

But how do you know which target market is right for you?

Let’s take a closer look at the five most important factors.

find-your-niche.jpgLocation, Location, Location

Everyone knows that location is the name of the game in the real estate industry. But what exactly does location mean in your community? What about the individual neighborhoods in your community?

The communities near where you live make sense to focus on for a number of reasons. For one thing, you likely know more people in these areas. People like to work with people they know.

You also know what makes these communities tick because you live there. You have your finger on the pulse of what’s for sale, what’s new to the market, and so on because you’re around it every day.

If everything in your community revolves around a local college, you might want to consider targeting investors who are interested in buying and selling rentals for students.

If there are any large companies in your area, you may want to focus on the communities their employees tend to gravitate towards, and work to build relationships with their HR departments so that you will be top of mind when they bring new employees and executives to town.

Those are just a few ideas surrounding “Location”, but I’m sure you could think of more depending on your particular market.

Turnover Rate

As a real estate agent, you only make money when something actually sells. That means you don’t want to waste your time in an area where things sit on the market for long periods of time.

Once you get your focus down to a few niches that might work in your chosen location, check the turnover rate data to determine which of those targets sell the fastest.

Local Competition

You should also consider what the other agents in your area are focusing on. If no one out there is even bothering to target the niche or market area you are considering, that could be a huge red flag.

But you should also be cautious of niches where the competition is so thick that you could get lost in the shuffle among all of the other competing agents.

Skills & Experience

In order to add a personal touch to the area of local real estate that you choose to focus on, take some time to think about how you might be able to add a personal touch to clients you work with in that area.

Take the groups of people you interact with on a regular basis at local activities, softball leagues, and church groups and see what they all have in common in terms of their real estate holdings. This can lead you in a great direction where you can capitalize on existing relationships.

Profitability

The last thing you are going to want to consider before jumping into the process of marketing to a specific niche is to make sure that the market you are considering is actually going to be profitable.

Take all of those things we have talked about like location, turnover rate, competition, and your personal experience and run some numbers to determine if you are actually going to be able to make any money focusing on a particular market.

Every area is going to be different in the number and type of opportunities available to local real estate agents. But if you are willing to put in a little work up front, you should be able to identify a few profitable niches buried in just about any market.

Topics: Agent Resources

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