There are two prominent real estate niches – residential and commercial. When you choose a specific real estate niche, you establish yourself as a specialist in that real estate property asset type. Besides, if you want to establish yourself as a successful real estate agent in a big city, there is no alternative to choosing a particular real estate niche.
Real Estate Niches & Why You Should Have One
The primary purpose of choosing a real estate niche is to stand out from all your competition. When you're a specialist in a particular niche, you'll be able to add value to your customers.
Let's say you're an expert in commercial real estate. Now, if anyone wants to buy a commercial real estate property, they will search for experts in that property type. If you establish yourself as an expert in commercial real estate properties, they will come to you and employ your services.
2 Primary Real Estate Niches
Residential Real Estate Properties
Usually, when a real estate agent starts their career, they choose residential real estate property. One of the main reasons behind this is that the number of clients is vast. Besides, as a real estate agent, you can have subcategories to this niche into other niches. For example, condos, mobile homes, luxury homes, single-family homes, etc.
Again, some of these real estate niches have high commission potentials. For example, luxury homes are more expensive than normal homes. If you sell a luxury property, you will earn more money for the time you have spent with that client.
While choosing a residential property niche, consider your interest, client size, competition, income prospect, and cut percentage.
Commercial Real Estate Properties
If selling large real estate properties excites you, this real estate niche is for you. One of the biggest benefits of this real estate niche is that it has a high commission. For example, if you're selling a large real estate complex for 10 million, the total commission will be $200k-$300k in most instances.
However, the commercial real estate niche's size is smaller compared to residential real estate properties. But as I mentioned earlier, the most significant benefit of this niche is the money you get from each real estate property.
Like residential real estate properties, there are subcategories to this niche too. These are;apartment complexes, Hotels, Office spaces, and so on.
How to Select a Real Estate Niche?
As I mentioned above, the main purpose of choosing a real estate niche is to show your expertise in real estate. However, you'll have to keep in mind that if you narrow your niche, you'll lose some clients too. That's why you'll have to create a balance. Firstly, learn about different real estate niches. Besides, check all the income prospects and opportunities of a particular niche. Note all the information in a paper and compare them. After analyzing all, choose the real estate niche you like. However, while selecting a real estate niche, give your interests more preference than anything else.
