If you’re anything like most Realtors, you probably felt like your career started by being thrown to the wolves.
You busted your butt preparing for your licensing test, then when you earned the title “Realtor,” you realized that you still had to figure out how this all works in the real world.
I know that’s how I felt.
What often happens at this point is that new Realtors are left to fend for themselves. They have to figure out how and where to find clients, and once they do, how to get them under contract and adequately represent them.
And we all know that without taking clients through the closing, we don’t get paid. That leads to desperation, which leads to trying to be all things to all people. They’re basically trying to throw enough at the wall for something to stick.
Except it doesn’t work that way.
When you try to be “everything,” you make it almost impossible for prospective clients to see your value. And if they don’t see your value, they will seek out an agent who can present clear value.
That’s why it’s essential to choose a well-defined niche — something you can specialize in that will set you apart from your competitors as the authority on that subset of real estate. Doing this also helps you run your business more efficiently and reduce your stress, which goes a long way toward becoming more successful.
Most Realtors don’t realize this, especially at first. So, in this article, I want to outline three reasons you need a well-defined niche so that you can become a more prosperous and happier agent.
I learned early in my career that we can’t be all things to all people. But many agents ignore this, and it hurts them financially. That’s because it makes their prospecting and marketing efforts less effective and more costly.
When you focus on a well-defined niche, you become known as the authority for that thing. This authority status leads to greater trust, which makes it faster and easier to land new clients. It also helps you to create more opportunities, which could include things like:
- Speaking engagements
- Media features
- Career advancement
- Partnership deals
This is the path I took, and that’s why I know exactly how powerful it can be. When I first got involved in the real estate industry, I was in charge of evicting homeowners who had been foreclosed on and evaluating these properties.
I saw the fear, stress and frustration homeowners faced when facing financial hardship and knew there had to be a better way. I also saw the lack of education these homeowners had to avoid foreclosure.
When I became a Realtor, I knew I wanted to change the homeowner’s experience throughout the short-sale process. I wanted to transform it into a positive one that serves as a springboard into the next chapter of their life.
And I knew that to do that, I’d have to specialize in short sales. That focus on a well-defined niche has served me well.
I’ve become known as The Short Sale Queen by focusing on a particularly challenging part of real estate that most Realtors want to avoid at all costs and most do not understand.
As a result, we receive referrals for short sales from Realtors all across the country, and I regularly get opportunities to be in the media. Doing so creates a stream of leads and tons of exposure.
And it’s almost always easier to turn these leads into clients because of the status that comes with being the recognized authority on short sales. All because I built my brand around a well-defined niche.
It’s crucial to select a well-defined niche that’s still large enough to be worthwhile. Some possible niches could be:
- Short sales
- Fly-in communities
- First-time homebuyers
- New home sales
- Vacation rentals
This list could go on and on, but I think you get the idea. Pick a niche that suits you, focus solely on that, and over time, you will become the recognized authority in that niche.
More efficient operations
If you’re anything like most people, you can probably remember a time when you were really in the zone.
And if you think back to exactly what you were doing at that time, you’ll likely remember that you were intensely focused. You weren’t trying to do a hundred other things. And it was that intense focus that led to the efficiency.
That same concept applies to your business. When you focus on a well-defined niche, you’re able to systemize your workflow more effectively. Doing this is critical because it allows you to deliver better results for your clients consistently.
It also helps you to improve profitability, speed, and scalability. That’s a decisive advantage. It’s also one that many of your competitors will be too lazy to capitalize on, which makes it even more powerful for you.
Imagine if you weren’t very good at singing. (If you’re anything like me, you don’t have to imagine that part.) Now imagine how you’d feel if you had to get on stage to sing in front of a crowd. It would probably stress you out. I know it would for me.
But what if we changed the scenario? What if you were fantastic at singing? Now how would you feel about getting on stage to sing in front of a crowd? You would probably feel a lot better about it, right?
The same thing happens when you focus on a well-defined niche.
That’s because when you focus on the same type of work every day, you become a master at it. The little nuances that would trip the average Realtor become second nature to you. That creates a level of certainty. And that certainty reduces your stress levels.
We all know how important it is to reduce stress. We understand its impact on our health. But what most people don’t realize is that elevated stress levels also hurt us professionally. You lose focus and don’t think as quickly or clearly when you’re overly stressed.
On the other hand, you’ll be more focused when you’re not stressed. You’ll also think faster and more clearly, enabling you to spot opportunities and problems others might miss, negotiate more effectively and adapt more smoothly.