Grow Organically

A niche market can do wonders for an agent’s bottom line, and being able to find the niche that speaks to you can make work more enjoyable

By Andrew Conner

A solid niche can be a boon to a real estate agent’s bottom line.

It helps establish expertise and can provide access to a new market full of potential clients. However, finding success within a niche isn’t a simple task. For agents successful in a particular niche, they explain the key is to find something you are already passionate about or engaged in, and use that as your guide.

“When you’re thinking about a niche, I think there are two ways to look at it: product and people,” says Jean Groesbeck, CRS, managing broker at The Groesbeck Group in the Pacific Northwest. Groesbeck explains that she has two niches that she works in: luxury homes and dog lovers. “I am a boater and have a lot of friends who share the hobby, and they started asking me for help with real estate needs. Since boats tend to be more expensive toys, these clients were more affluent, and that is how I wound up in luxury listings.”

Similarly, her other niche of dog lovers came organically: “I’m an avid dog and animal lover, and I am naturally attracted to people who have that same passion. I do dog agility sports and therapy work with dogs,” she explains. “In those situations, I end up meeting more dog people, and I add value as an agent because of my experience with dogs. If I look at a house, it’s instinctual for me to look and think what kind of house this is for a dog. For example, is there a great level lawn for agility training?”

To find similar niches for yourself, Groesbeck encourages reviewing your enjoyable and successful transactions: “Look at the transactions where you enjoyed working with the people and where your client had a great outcome, and then figure out that common denominator,” she says. “Was it parents of your kids’ friends? Your hiking group. Identifying a niche first and going after strangers is the hard way. I think it’s a lot harder than just following your heart and having your market niche match who you are.”

Start small

Tim Kinzie, CRS, founder of Montlor Luxury Realty in Cary, North Carolina, recommends following your passion when it comes to finding a niche that works for you. “I think you have to lead with passion; you can’t take the clinical approach,” he says. “Even if you identify an underserved market for some product type, if you don’t love that product type, then you’re going to hit a wall.”

Kinzie suggests starting small—and, depending on your niche, even staying small. “When I started as a real estate agent 10 years ago, I thought, ‘What is the industry currently missing?’” he says. “From the start, I recognized that trying to duplicate what larger corporations had already built was a fool’s errand—you can’t out-Walmart Walmart, so to speak—so I decided to specialize in a more innovative concept right off the bat.”

Kinzie’s interest was in technology and the internet, so he aimed for the market he expected would most likely see the value in and embrace real estate technology: millennials. “I knew homebuyers were already conducting searches online on their own, so I started as a cloud-based broker,” says Kinzie. “Even before I had the resources to create cloud-based software, I was branding and taking pride in the fact that our company was ahead of the curve regarding remote business infrastructure, for example. I knew it wasn’t perfect, but it was unique—I wasn’t trying to get 10% or 20% share of an already saturated market. I wanted to corner something new and found that you can make legitimately life-changing money within a very specialized market segment.”

Starting small also helped Eric Gardner, CRS, REALTOR^® with RE/MAX Alliance in Virginia Beach, Virginia. As a recently retired 30-year veteran Navy Captain, Gardner knew from the start of his real estate career in 2016 that he wanted to be involved with military buyers and sellers.

“I spent a good part of my first year doing rentals and trying to find my way, figuring out the industry and learning and getting designations,” says Gardner. “I knew just based on who I was working with and wanting to maintain a contact with military members that this would be my focus. I started working with young, enlisted clients, finding houses for them and helping them utilize their VA loan. I felt comfortable as a retired Captain working with young Sailors—when I had a couple of sales for two single female Seamen (E-3) who were both under 23, I thought that was the coolest thing in the world to assist them.”

However, even when starting small, it’s important to think ahead. “You really have to think about how your niche will grow with you,” says Kinzie. “Think about the scope of your life: One of the advantages of being a real estate agent is it’s not a ball and chain. I’ve built teams all over the country because we solve a niche problem that is constantly reappearing. You also have to think about the limitations. For example, I’m not a big fan of geographic specializations, because from the outset, you’ve already put a cap on your growth.”

Get educated

Beyond finding your passion and following it, learning the ins and outs of your niche and separating yourself from the competition through expertise will help improve the odds. Gardner pointed to the classes he took and designations he received through organizations like RRC as helpful in establishing a baseline of knowledge. He also participates in the Veterans Real Estate Benefits (VREB) Network, providing a Veteran Membership Reward to each veteran and active military client—over $175,000 since 2017. After he gained more experience with military members as clients, he got involved with the national nonprofit Veterans Association of Real Estate Professionals (VAREP) and is President of his local chapter.

“Having that VAREP chapter here in Hampton Roads is part of building that niche, and taking care of those who chose to serve,” says Gardner. “We do what we can to educate military homebuyers about the strength of the product that is the VA loan. We do lunch and learns—virtual lunch and learns as well now—and offer classes. We just received approval to teach a military veteran housing certification class on the VA loan that is geared toward agents and lenders.”

Both Groesbeck and Kinzie agree with Gardner about the importance of education. Groesbeck explains that getting and staying educated on your niche should also come organically. “You have to really love the aspects of your niche,” she says.

“I think a lot of agents take a class or get a designation but don’t continue to educate themselves. If you’re not reading the articles, listening to podcasts or signing up for newsletters, that is a red flag. I absorb as much information as I possibly can because I love it. It will help your service and you’ll be able to understand and explain things like subtle differences in pricing or value.”

Kinzie adds that when you’re starting in a new niche, it’s the perfect time to educate yourself. However, be sure you’re working for the right reasons. “I think anyone getting into the business these days needs to think about what value they are adding to the industry,” says Kinzie. “In the beginning, you have to think of yourself as a knowledge resource. Be helpful and build relationships, and then use everything you’ve learned to build your brand and your niche. Take advantage of the fact that you’re green—no one sees you coming. When you start succeeding, people will take notice.”

Ultimately, the key to finding a successful niche already exists within every agent. Following your passions will organically lead you to building a brand and relationships that help set you apart from the competition. As you build more connections and increase your expertise, you’ll naturally carve out your new niche.

Dominate a niche today! Check out the new webinar, Niches Equals Riches, on November 4, 2021. Register at CRS.com/catalogsearch.

Photo: iStock.com/Gugai