When looking for new business, do you work a specific target market, or do you simply look anywhere and everywhere? Whether you’re a seasoned agent or you are new to the real estate industry, selecting the right target market is an important step towards building a successful business.
Every good plan starts with research, and choosing your target market shouldn’t be any different. If you’re unsure about the niche markets within real estate, spend some time researching the options and determining how others have found success by narrowing down their market. The biggest mistake you can make is thinking that everyone can be your client. After all, the “generalist” is dying and the “specialist” is going to be the future of Real Estate. Picking the right market to target is going to be the future of your business which means you will want to choose wisely.
If you already have a couple years under your belt, study your list of past clients and determine where most of your business came from. Find out who you got the most satisfaction out of helping and sort them into groups based on potential for future business. The results may surprise you and that is where you should start focusing more of your efforts in.
If you do not yet have a target market, there are some important factors you need to consider. Before you automatically choose the neighbourhood you live in or grew up in, consider these points:
- High Turnover – It’s very important that the area you target has a high turnover rate. That is to say that there should be a lot of homes that are bought and sold each year. You may be an expert in a specific area but if people rarely move in that area you won’t get much business!
- Check the Competition – Once you’ve identified some areas with high turnover you want to identify what your competition is within that market. Is there a particular agent(s) that dominate the area already? Sometimes its better to be the big fish in a little pond instead of getting into a big pond and being the little fish.
- Who is your target audience – Learn who the consumers are in your target market. What are the demographics? Once you learn who they are you can start crafting a strategy to reach them directly in a way that interests them and will generate responses. If you are targeting an older demographic then paper mail outs may have a higher reach than if you are targeting a younger more tech savvy audience who will just sort their mail over the recycling bin.
- Research and Develop the Expertise – Once you’ve chosen a target market you need to start researching and developing your expertise in that area. Go and see listings every day. Research past sales and what amenities are in the area. You need to have an encyclopedic-like level of knowledge about the area. You will gain consumers trust a lot faster if you truly know everything about an area.
- Don’t Give Up! – Farming a specific area takes time to pay off. It’s not usual for it to take 1-2 years until you start seeing consistent results. Many make the mistake of giving up after 4-6 months and no immediate results. It takes time to build trust and credibility as the area expert.
While I’ve mostly talked about geographical areas as a target market, you do not have to make your target market geographical. You can target first time buyers and first time sellers, divorcees, relocations, luxury market, recreational buyers, seniors, millennials, a specific hobby type (ie. Hockey players), and so much more. You can make a highly specific target market and become the go-to expert in that area.
Having a target market, whether you are a new agent or an experienced one, is very important.
What’s your target market? Share it with us!