One of the best practices for starting a new business in a flooded market is to specialize in a niche. Real estate is no different - Some of the most successful agents have found their footing in niche real estate markets. Here are some options when you're ready to specialize
Go to college for eight years and then spend another three to seven years in training and you’ll be a licensed physician, earning, on average, $195,000 per year.
Use those training years to learn a medical specialty, however, and you can expect an extra $100,000 (on average) per year for your efforts. Some specialists, however, make far more. Invasive cardiologists, for instance, earn an average of $525,000 a year.
Invasive cardiology is a niche, by the way. So is orthopedic surgery, gynecology, urology and gastroenterology, among others.
Many professions offer profitable niche markets. Lawyers, for instance, can practice real estate law, health care law and others, all bringing in significantly more income than the generalist.
The real estate industry is no different, except that those employed in it are stubbornly attached to the generalist label. The fear of losing even one deal keeps them from specializing in niche real estate markets, making crazy money and separating themselves from the pack.
Last year, McKissock.com released the results of a survey showing the most profitable niche real estate markets. Some are obvious, some may surprise you. We’ve also thrown in a few of our own – because agents we know who specialize in them are crushing it.
“The median gross income of Realtors® was $41,800,” in 2018, according to the NAR. More experienced agents and specialists naturally make more. But use this median number to gauge the profitability of different niches that interest you.
First, let’s take a look at the McKissock survey results:
Sound pretty boring, don’t they? Check out 5 more niche real estate markets that we think you may be interested in.
The baby boomer or “senior” niche (a great many boomers despise the label “senior,” by the way) is one that you can depend on to grow over the next few decades.
Boomers, by the way, were born between 1946 and 1964, so they’re between the ages of 55 and 73 in 2019.
The beauty (and the fortune) in this niche is that a large number of boomer real estate consumers who are selling their homes are also in the market to buy another.
The challenges you will face when marketing to this segment are numerous, yet easy to overcome.
First, it’s a huge cohort. To get an idea of how different the olders are from the youngers, check out what they listened to on the radio.
Older boomers grew up listening to Elvis, Roy Orbison and Bobby Vinton. Those in the middle of the generation couldn’t get enough of the Beatles, the Doors and Aretha. Younger boomers craved the sounds of the Eagles, Donna Summer and the Bee Gees.
That 73-year old that you’re helping to downsize? Keep in mind that she may have been barefoot and stoned at Woodstock.
Learn more about working with baby boomers right here on Easy Agent Pro.
We were rather surprised that this one didn’t show up on McKissock’s list because it’s one of the most lucrative niche real estate markets.
The luxury market is not easy to break into, however, and you may have to work long and hard to reach the top.
But, once you make it, you won’t need to produce the volume of sales that other agents do. In fact, on Real Trends/Wall Street Journal’s “1000 List” the two individual agents (not part of a team) in the Top 10 sold fewer than 127 homes in a year.
Get tips on how to get your foot in the luxury home market door, here.
The NAR finds that 11 million adults in this country identify as lesbian, gay or bi-sexual. This group makes up 4 percent of homebuyers and sellers, but is expected to grow as millennials and members of Gen Z enter the market in larger numbers.
The homes that your LGBTQ clients will buy tend to be smaller and older than those that heterosexuals purchase. But the homes tend to be in or very near urban centers, which, price-wise at least, may make the commission checks comparable to those realized when working with buyers of rural and suburban larger, newer homes.
The profitability of this niche market, however, lies mainly in the fact that not many agents are willing to build their practice solely around this demographic and the LGBTQ community is clamoring for specialists.
While it helps to be gay when working with the LGBTQ community, it’s not a requirement. Having a deep understanding of the lifestyle and the challenges they face is critical.
For instance, the LGBTQ community, as a whole, tend to be better-educated with higher discretionary income than the heterosexual community.
They are also more “informed socially and politically,” according to a study published in the Journal of Homosexuality (Dr. M. Wayne DeLozier PhD & Jason Rodrigue MBA).
Finally, the gay community is also notable for their dedication to career and family – something to keep in mind when considering blog and newsletter topics.
Since discrimination in housing has been in the news lately, it is something that is of concern for LGBTQ real estate consumers when considering buying a home, whether for the first time or second.
Vow to become their real estate advocate and you’ll not only be supplying the community something sorely needed, but you’ll build a socially responsible and lucrative business as well.
For tips, check out the National Association of Gay & Lesbian Real Estate Professionals blog and podcasts.
As a new real estate agent, you have a clean slate. On it, write a lucrative future by specializing in niche real estate markets.
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