Discover Niche Real Estate Markets
As Gary and Jay write in The ONE Thing, sometimes the key to big results is to go small.
Niche markets are smaller, unique segments of a larger market. A niche real estate market may focus on a particular type of recreational property like hunting cabins, ski chalets, or lake houses. It can also address a type of need or community, such as specializing in rentals for college students or helping people through end-of-life property transitions. Really, when it comes to niche markets, there are as many kinds of opportunities as there are types of people and properties. These small market segments, when offered the right value, can be big opportunities.
Because we’re talking about highly responsive value offerings, let’s clarify the difference between a niche market and a MOFIR to avoid confusion.
A niche isn’t the same as a MOFIR. MOFIRs are value offerings that often ebb and flow to reflect the tides of the market. A true niche market is stable; the opportunity to serve this segment will be sustainable. The service that you provide will be a part of your evergreen business model.
Here’s a great example of someone who has built a large business by focusing on a seemingly smaller segment of her real estate market.
The Lady Of The Lake
Beverley Knight, an agent who serves Atlanta and the Lake Lanier region, is a master of the niche market. She specializes in lake houses and every aspect of her business is focused on appealing to the people in this market. Her listing signs? They have pictures of the docks for each property. This kind of detail adds extra value for her clients because of course anyone looking for a lake house wants to know what the access to the waterfront looks like. She takes that into consideration, providing the answer immediately. She explains, “People who drive by and can’t see through the trees will know because it is on the sign.”
If you think catering to a lakeside market might limit Beverley’s success – it hasn’t. Even though the small towns around the lake are very close-knit communities (they already have their lake houses and aren’t moving), she began advertising the properties to potential buyers in Atlanta. She bought lists of people who had registered boating licenses. At a time when people said it couldn’t be done, she built her agent website to allow people to do a lake-only property search.
By going big on going small, Beverley found amazing results for her business. If her story has you wondering how to find your own place the map, consider these next questions.
Find Your Niche
If you’re looking to build a niche business, there are a few things to consider as you look for your opportunity. Ask yourself these questions to get started:
1. What are you passionate about?
If you’re going to build your business around a particular thing, you should make sure that you like it! You will dive deep into figuring out the best way to bring value to this group and, naturally, spend a lot of time with them. If dealing with dust isn’t your thing, you’ll probably want to avoid walking around ranches all day. So, choose wisely. Plus, picking a niche that you enjoy will also help you bring personal expertise to your business, allowing even better value.
2. Does this niche pay? Almost any market can be further divided into smaller and smaller markets, so simply looking for a market within a market won’t lead to a big business opportunity. You need to identify one that contains the potential for profit.
Research is your friend here. What are the average price points for this market? Is it affected by seasonality? (Beverly’s niche peaks annually in July and then slows as the temperature drops). What investments would you need to make in order to begin targeting this market? Find out as much as you can.
3. Are there other businesses playing in this space?
Once you’ve identified a potential niche that you are passionate about serving and believe could be profitable, benchmark: who is your competition and how can you position your business more favorably?
Put your black hat on when you’re considering your competitors. If there aren’t businesses operating in this space already, does that simply mean it’s undiscovered or does it mean that you might need to reevaluate?
Niche markets can be the key to unlocking your next business opportunity. By getting to serve a targeted community or area, you’ll be able to offer unprecedented, personalized service.
What are the biggest opportunities for niches that you’re seeing in your market? What questions do you have about finding a niche market for your business? Let us know on our KellerINK Facebook page! And don’t forget to subscribe to out newsletter for more research and insights.