Top Niches for Real Estate Agents

How To Choose Your Real Estate Niche 

Once you earn your real estate license, you have a plethora of opportunities available to you to make your real estate business your own. Many new agents may not know that the industry offers the possibility to branch out into different avenues within real estate.  

You may be wondering why a real estate agent may want to take up a niche or specialty. Besides acquiring new knowledge that can help you in your standard real estate, learning a new specialty may help grow your business and keep your pipeline full for the duration of your career. 

But before you jump into a niche, take inventory of who you are individually and as a real estate professional to determine which specialization will suit you. Ask yourself questions such as: 

Which types of clients do you enjoy working with the most? 

Do you have an interest in fixer-uppers or homes that are often overlooked? 

What types of homes do you enjoy showing and selling?  

Although some niches may require you to obtain other certifications or undergo more education, it is still a worthwhile pursuit to explore the range of options available to you. Let’s look at some of the most popular estate niches for you to consider. 

Real Estate Investing  

Connecting with real estate investors could prove a profitable avenue for your real estate business. One of the benefits of working with real estate investors is that they are usually constantly looking for properties to flip. Whereas a client who is seeking a single-family home may only seek to purchase a property once every several years, real estate investors have a set of projects that are ongoing involving multiple properties. Real estate investors also have niches in terms of the types of properties they are interested in purchasing.  

Some investors specialize in multi-family properties, duplexes, and triplexes. There are some who have based their business solely around mobile homes or mobile home parks. There are also many investors who own several vacation rentals. As a real estate agent looking to find your niche, it is important to acquire knowledge about the prevailing topics among the real estate investment circles. 

Try to make connections on social media sites such as LinkedIn or join one of the many real estate investment groups on Facebook to meet prospective clients and get a feel for how the real estate investment business really works. 

For Sale By Owner Properties 

For Sale By Owner (FSBO) properties are a good niche to explore because they are rife with opportunities for leads. Many property owners do not want to work with a real estate company when they sell their property for several reasons.  

By trying to connect with these owners and demonstrating how you can help them take the grunt work out of selling their property. For example, you could formulate a market analysis and show the seller that your knowledge can be a benefit to the process. 

Vacation Rentals 

If you are based in an area that is known as a tourist or vacation destination, you may want to consider making vacation rentals your niche. Owners of these properties are typically more focused on the financial benefits such as rental income and tax implications than things such as designs or school zones. Thus, to enter this specialty, you’ll need to pursue further certification, namely a Resort and Second-Home Property Specialist designation offered by NAR.  

Luxury Homes 

The luxury home market has become quite popular, in part, because of reality television programs highlighting superstar real estate agents and brokers boasting huge commissions for closing single deals. However, if the luxury market interests you enough to make it your single focus, there are a couple of things you must consider before diving into it. 

First, the luxury market is extremely limited. Most of the homes on the market are not luxury homes which means that mastering this niche will be complicated. Secondly, the luxury market is already full of real estate agents and brokers that have been a part of that specialty for years and have cornered the luxury market in their area. Although real estate can be competitive, it’s up to you to decide if you want to try to break into that field. 

If you do, you’ll need to come up with a way to connect with those in your area who are more affluent. You can do this by joining civic organizations or social clubs where higher-earning individuals typically gather. Charitable organizations are also an effective way to meet people who may need assistance with either buying or selling a luxury property. You may also consider trying to co-list with an agent who has more experience in the luxury market.  

The upshot to getting into this specialty is that the ability to effectively network will be the dominant factor in your ability to break into and be successful in the luxury market. Additionally, NAR offers the Certified International Property Specialist designation that many luxury real estate agents acquire. The Certified Luxury Home Marketing Specialist designation is also something that many luxury professionals pursue.  

Flipped Properties 

If you’re a real estate agent with a penchant for design or even a background in construction, you may have considered also flipping properties or working closely with those who do so. It could be a good second career and your knowledge of real estate would be a benefit when it comes to bidding on distressed properties. Again, networking comes in handy when pursuing this specialty. You’ll want to connect with contractors, electricians, plumbers, and other skilled tradespeople. The CE Shop’s podcast on flipping houses is a good place to start if this is a niche you’re considering.  

Regional Specialty 

As a real estate agent, you’ll want to be well acquainted with the areas in which you work. Over time, you’ll learn the demographics of the areas and you may find that it helps you carve out a niche. For example, if you notice that certain areas are undergoing a lot of development and you prefer representing clients who are looking for new builds, you may decide to dedicate your business to serving that locale.  

Unique Properties 

If you’re fascinated by historical landmarks or other architecturally significant properties, building your business around these types of homes may be a promising idea for you. Although they may not have the glitz of new builds or glamour of luxury properties, there are buyers who are highly interested in historical or period homes. You can make yourself an expert on midcentury style homes, pre-fabricated homes from a bygone era, historical landmarks, mill houses, and other unique properties. With such a specialized knowledge, you can frame your marketing efforts around clients who are seeking such properties. 

Rural Properties 

Major development is happening in a lot of big cities and some buyers are seeking to escape urban sprawl and move into more rural areas. From estates to farms, rural areas are a great specialty to explore. If this sounds like something you’d be interested in, take the time to learn about the more intricate details of rural living such as septic tanks and plumbing considerations, mail delivery, codes and regulations revolving around livestock, and other prominent issues regarding rural or non-incorporated areas. 

First-Time Homebuyers 

First-time homebuyers are a great niche market. Usually, these prospective buyers are full of questions about the mortgage process, inspections, and pricing. They are also full of anecdotes from others about how their homebuying experience went wrong and may be slightly nervous about the process. As the real estate agent, they trust you for proper guidance and this can help build relationships that offer a perpetual return. To prepare for this specialty, learn about the different first-time homebuying programs that are available nationally and regionally. 

Senior Homebuyers 

Although many people picture senior citizens as people who have bought and settled into the home of their choice, they are still a significant demographic in terms of buying and selling real estate. In fact, the senior demographic is so significant that NAR has a special designation, the SRES, that lets prospective clients know that you have the knowledge and education to serve their needs. You’ll also need to be prepared for the inherent generational differences between Millennials and Baby Boomers. For example, senior clients may be more inclined to converse over the phone than text or do everything online. It may be an adjustment for you, but it could prove well worth it.  

Single Homebuyers 

This niche is tricky because it can run against fair housing laws set by the Department of Housing and Urban Development you're not careful. However, as single women are the second largest group of homebuyers behind married couples, crafting your business to accommodate this significant client base is wise. You’ll benefit from determining the psychographics of this population so that you can develop a marketing plan that will attract their attention.  

You may decide to enter a niche, or you may opt against choosing a specialty. Either way, what will cause you to stand out more than anything is your reputation as a trustworthy real estate agent. Acquiring the knowledge you need to be an expert for the clientele you serve will carry you a long way in growing your business.