Archive for September, 2008
Extreme Niching
Friday, September 26th, 2008OK, all you non-believers out there! There is yet more evidence that not only does selecting a niche market increase your success, but that the more extreme you go with it, the better off you are. I have been preaching this for years, yet there is a stubborn majority out there that refuses to listen. Or, there’s the even more guilty segment who do listen and fundamentally agree, but keep putting the decision off saying they are too busy to make changes now and other lame excuses.
My Niche Back Up Singer
Well, I’m tired of it – my voice is hoarse and my fingers numb from repetition. So, here ya go… read this article recently posted on Inman News by Lai Saetern: Real Estate Niches Stretch from Nudists to Celebs and the follow up, Real Estate Jobs with Dogs and Logs . Lai’s articles escort us to specialty niches in every corner of the country, ranging from nudists to celebrities to military to dogs (puts a new meaning on the
phrase “in the dog-house”, but hey – everyone needs a place to call home, right?). The point of the article is to describe the extraordinary successes the agents/brokers are enjoying in these highly specialized and somewhat unusual markets. Now, why would that be?
Oh, and by the way, two of the featured agents in these articles are students of mine. OK, that’s enough of a rest for me, back on my soapbox for my favorite subject…
REAL Men (and Women) DO Eat Quiche – AND Have a Niche
One of the number one reasons I hear people quip as a counter argument is “Well, that may work for some people, in a perfect world. It would never work in my area.” And another, “But if I limit my market, I’ll exclude so many people – think of all the business I’ll lose!”
Well firstly, the agents in these articles are REAL people operating under the same market conditions you are, not fictional fairytale characters in a in some distant land once upon a time (though if you think about it, some of those characters would make downright horrific clients!). And if it works in every region from Florida to New York to Texas to California to Maine, as Lai’s articles show it most certainly does, what makes you so special (or not?) that it won’t work in your neck of the woods?
And speaking of necks of woods, as you know, I travel all over the place giving my schpiel, and I have discovered that over 98% of audiences (representing over 10,000 agents per year) don’t niche! This leaves a huge opportunity open for those who do to eliminate most of the competition out there. Besides, you don’t actually have to select just one niche to specialize in! If you are reluctant to, in your perspective, “limit yourself”, you can specialize in more than one niche – as long as you have separate sites for each target market.
Finally, by wrapping a targeted service brand around a niche provides you with a handy dandy automatic, and lucrative, exit strategy when you are ready to move on.
So, please, do us all a favor, and stop with the lame excuses. Stand up with the really successful agents and get yourself a niche!
Short Sales as a Niche Short Sighted
Thursday, September 4th, 2008Sad to say, the number of people trying to short sell their home to avoid mortgage default or foreclosure increases daily. One may think a savvy real estate agent would look upon this situation as an opportunity to specialize in the short sell process, and garner a fair amount of business by doing so. However, let’s take a look at the bigger picture…
The Short View on Short Sells
Basically, a short sale is a desperate measure for desperate times – for all parties involved. The person selling their house is obviously in severe financial distress, and the lender is just looking for a way to cut their losses on a loan gone bad. The sales prices on short sold properties are well below market value, requires a terribly complicated process, and the time involved for the deal to be completed is painfully long. These factors combined have to make you wonder if the time you need to invest is worth the payoff. Trying to make up for it though sheer volume will simply add the headache of tracking and maintaining all these deals to the heartache inherent in the situation. In other words, it’s a lot of work and hassle for little return. Wouldn’t it be better worth your time to focus on a niche that would garner less work and greater return?
The Long View Ain’t So Pretty Either
The realities of the short view on short sales aside, let’s take a look at the longer term view. If you’re like most agents, a fairly decent percentage of business comes from either returning customers or referrals from happy clients. Well, people who are forced to short sell their homes are neither happy, nor are they likely to be buying a home again for a long time given the hit their credit will take.
Also, although all prognostications say we have yet to hit the bottom of this mortgage crisis, the fact remains that it is ultimately a short-lived situation. In a year or two, the market will level out again and a new normal will be established. Short sells will be a beast of the past instead of the everyday occurrence they are now. Where will that leave your niche, the specialty for which you are known? You’d be coming’ up short, my friend!
Primary vs. Secondary Niche
Now, all this is not to say you can’t glean some benefit from the current situation. After all, most the people who have been backed into the short sell corner genuinely need the assistance of an experienced professional broker or agent to help them through this difficult time too. There is no reason you should not be ready for the opportunity. If you see enough value in short sells in your particular area, go ahead and develop short sales as a niche – BUT, do it as a secondary niche to your primary target market. It would be a short-sighted mistake to rely on short sells as a long-term business strategy.





