Why Niching Makes Real Estate Marketing Easier and How To Do It Without Limiting Your Income

Why Niching Makes Real Estate Marketing Easier and How To Do It Without Limiting Your Income

What if I told you that there was a way you could spend less money on marketing, convert more shoppers into buyers, and make more money all at the same time?

Would you believe me?

Maybe you would and maybe you wouldn’t, but by the end of this article I think I can make you a believer. You see the secret to what I just described is Niching your audience. Or without the marketing jargon, focusing on a specific group of people so that you can market and serve them more effectively, making you the go-to Realtor® for people in that group to work with.

While marketing basics teach the fundamentals of product, promotion, price, and place—we are taking things a step further and diving into niche marketing. This blog post explores how to market real estate with niche marketing and how you can use it to leverage your marketing potential.

What is Niching?

Niche marketing, in general, is a highly targeted approach to advertising or reaching a target market. Rather than casting a wide net, when businesses apply a niche marketing strategy, they promote products and services to a smaller, more specific audience well-defined by certain characteristics.

For example, pet owners represent a niche market. You can break down niches into even smaller segments. Using pet owners as an example, another niche within a niche is dog owners.

In real estate, niche marketing is a marketing strategy that uses the niche marketing concept of targeting a smaller segment of people or a specialized market segment. The real estate market is broad, and many real estate professionals can get lost in the shuffle. Niche marketing is a way to differentiate yourself and attract a specific group of motivated clients.

When applying a niche marketing strategy, you can target people with unique preferences, needs, or challenges and position yourself as an expert in that area.

Real estate niches are defined by factors such as:

  • Property type
  • Demographics
  • Specialized services
  • Location

Examples of real estate niches include:

  • Luxury homes
  • Commercial property
  • Vacation rentals
  • And careers such as teachers, police officers, doctors, or other professionals

Niche marketing is a cost-effective, powerful way to develop and sustain your real estate business. As a highly targeted marketing approach, niche marketing allows you to spend efficiently to reach a specific audience.

Focusing on a niche market, you can direct your resources, time, and efforts to meet the needs of your target market. In addition, typically, niche marketing leads to higher conversion rates because it is explicitly designed for your buyers’ persona or target market.

Finding Your Niche

Now that you are interested in niche marketing as a real estate professional, the challenge is how to niche properly.

First, you need to find your niche. Starting with a self-assessment, taking inventory of your skills, interests, strengths, and areas of expertise as a person and real estate professional. Then analyze your local demographics and trends. After you understand your strengths and consider your local market take inventory of your local competition. Researching your competitors will reveal if an untapped niche market is waiting just for you!

Choose a Niche or Two

There is a common misconception about niches in that many people think you can only have one. While it’s true that having a niche is about hyper-focusing on a market, sometimes that market really isn’t big enough to fulfill our needs or use the resources we have for marketing. That’s why we suggest you should pick two or three niches depending on how much you can handle and the size of that niche in your area.

There are several ways to choose your niche. The best way is to think outside the box.

For example, real estate has three primary categories: residential, commercial, and industrial. Within those categories, there are endless possibilities for niching down and targeting a specific market.

Some real estate niche categories include:

  • Location
  • Demographic
  • Property type
  • Professions
  • And so many more

Within those niche categories, there are even more possibilities. For example, within the demographic niche, you can narrow your market down to military service members, veterans, investors, baby boomers, millennials, or professions like teachers, police officers, or doctors.

Find something you can offer that no one else can in that niche, then focus your marketing and networking efforts on where your audience is found online or in person.

3 Tips for Finding a Niche

Define your passion: Do you have a personal passion for rehabs, green homes, vacation rentals, historic homes, or investment opportunities? What part of real estate is your favorite thing? Do you have a real estate topic you can talk about for hours? Turn your passion into profit by using it as a clue for your niche.

Pinpoint a location: Focusing on a specific geographic location can lead to more referrals in a particular area.

Consider your past profession or life experience: Before being a real estate professional, were you in the military, a teacher, a business owner, or a medical professional? Whatever your professional or life experience was before you started your real estate business, you can use it to create a specific real estate niche. For example, catering to nurses, teachers, or police officers by offering a unique

The Benefits of Narrowing Your Focus and Finding a Niche

We’ve talked a lot about what a niche is, how to find one, and even some tips on making sure you pick the right one.

But you may be sitting there asking yourself “Okay, this is interesting but why should I niche”.

Well, I’m glad that you (figuratively) asked, because having a specific group of people that you serve and who know you and your work offers a ton of benefits. So, let’s go through a few of them now.

  1. Spend less on Marketing – The great thing about having a specific niche is that you know exactly where those people can be found. You don’t need to throw up a billboard and hope they see it, you can use the internet, flyers, and even mailers to get to the exact people you are looking for.
  2. Better messaging – It’s so much easier to create a message that speaks to someone when you’re trying to talk to a few people rather than everyone. The struggles that teachers go through when trying to buy a home are nothing like the struggles a brain surgeon goes through so why would we try to give them the same message?
  3. You become the Go-To Person – The great thing about working with someone in a specific group is that they likely have friends in that same group. And seeing how you were able to speak to them and serve them in a way that no other Realtor® could, when their friends ask who they should work with it’s you who’s going to pop in their head.
  4. Building Trust – You’ve shown that you know what you’re talking about and that you know the struggle they are going through. This kind of trust gets overlooked so often but it might be the best thing you get from a niche. Because with that kind of trust you’re no longer a salesperson trying to get them to buy, you’re now a trusted advisor who is there to help them get the home they want and deserve.
  5. Building a Brand – No one ever asks “why” someone bought an iPhone and people who bought an iPhone are likely to buy another and another never switching. If you build your brand that way too no-one will ever ask “why” they should work with you and those people who bought a house from you are likely to have you on speed dial when they’re ready to buy another.

So, Did I Convince You?

The truth is there are a ton of reasons why you should pick a niche or two, and as you grow there is nothing stopping you from taking on more. I could go on all day about the benefits, but I think I’ve touched the best points here.

If you’re interested in niching and would like a little help, I’d like to invite you to come check out the Preferred Partner Program at Next Door Programs®. We work with Teachers, Nurses, and other Public Servants offering them grants and down-payment assistance to buy the home of their dreams.

Not only have we already done the niching, built an amazing offer, and built the brand but through our Preferred Partner Program we let Realtors® just like you use our program to promote their own businesses.

Not only that, but we’ve created a community of thousands of Realtors®, an in-depth turn key marketing system for you to implement, and professionally designed marketing materials that come with membership.

If you’re interested, you can learn more about it here!