I know you’ve heard me say this time and time again, but choosing a real estate niche is the game-changer that will help you grow to 7-figures.
But are you struggling with PROPERLY niching down?
Do you feel like no matter how hard you try, you just can’t seem to figure out how to niche down profitably?
Maybe you tried to follow common niching advice, but you find yourself no better than where you started…
Relying on referrals, posting on social media only to hear crickets, and wondering WHERE all the leads are hiding?
If this is sounding familiar, you’re probably making one of these six common mistakes that agents make when choosing a real estate niche.
We’ve seen these mistake time and time again when new agents join us in The Listings Lab.
Throughout the program, we help them course-correct – and once we reverse these errors, our members are able to clarify their messaging and start attracting quality leads.
So let’s get into the six most frequent niching mistakes that are preventing you from doubling your client base!
1. Thinking A Niche Is A ZIP Code
Let’s start with one of the top real estate niching pitfalls that continues to happen all the time…
Thinking a niche = a ZIP code.
Back in the day, this geo-farming model made sense.
We didn’t have the internet, so we were limited to manual marketing like door-knocking and handing out flyers.
But nowadays, we have this beautiful little tool called the Internet.
With digital marketing tools, we’re able to target people based on specific traits. We’re able to create online content that uses marketing psychology to target a very specific type of person.
And that type of marketing converts at a MUCH higher percentage than simply handing out business cards in your local area and HOPING one of them might turn into a real lead.
Targeting solely by geographical location is old-school.
By tying your niche to a geographical location, you’re just boxing yourself into a corner.
2. Thinking A Real Estate Niche Is A Property Type
Here’s where so many agents go wrong when choosing a real estate niche.
They choose a property type, like “luxury houses” or “condos” and think they’ve got a solid niche on their hands.
In reality, they’re only halfway there.
If you’re niche is “luxury” – that market could encapsulate 100 different types of clients. These days, luxury essentially just means, “people with money”.
Do you want to work with investors looking for luxury properties they can rent out as short-term rentals? Do you want to work with retirees who are looking to leave the city and buy a sprawling country mansion on a lot that spans acres?
The key is not to focus so much on the type of property, but the type of PERSON.
What are they looking to change with their property purchase, and what are they looking to accomplish?
3. Thinking You Need To Go After The Biggest/Most Common Niche Possible
Sure, you might think going after the biggest niche will give you a larger pool of potential clients.
But here’s your reality check: bigger isn’t always better.
Would you rather be a small fish in a big pond, or a big fish in a small pond? Stop trying to serve everyone, and start serving the right ones.
Some of our most successful members in The Listings Lab are the ones that decided to go ultra-narrow with their niche.
We’ve seen our members have success with niches such as:
- Corporate millennial women
And so many more.
Though, being so specialized might go against everything you’ve ever been taught—we need to get over it.
The narrower your focus, the more successful you’ll be.
4. Choosing A Niche You Don’t Resonate With
Here’s another way agents shoot themselves in the foot: choosing a niche they don’t resonate with.
Real estate is, at its core, a people business. If you’re not genuinely connected with the people you’re serving, you’ll constantly feel like you’re swimming against the current.
So if you’re a young millennial dog mom, maybe don’t choose retirees or empty-nesters as your ideal client avatar.
Ask yourself: who do I deeply understand? Who can I connect with effortlessly?
Choose a person going through a life transition that you have experience with. When you do that, everything about your offer is going to be that much more magnetic to your ideal clients.
You’ll attract them with your content because you KNOW how to speak to their struggles.
5. Trying to Choose Multiple Niches
One of the biggest mistakes I’ve seen people make is going after multiple niches at once.
You know the saying about being good at everything but great at nothing? It applies here as well.
Start with one niche and dominate it.
Once you’ve done that, you can move on to another.
Remember, the riches are in the niches.
From a marketing standpoint, the worst tagline you can use is “I’m here for all of your real estate needs.” That immediately gives a sense of desperation and lack of specialization.
It’s as if you’re saying, “I’ll take what I can get.”
The key to drawing someone in is with specific psychology-based messaging. This can only be done well if it’s directed to one demographic.
6. Not Getting Clear On The Problem You Solve
Here’s a dose of reality for you: Being in real estate doesn’t mean you’re just selling houses – you’re solving problems for clients.
If you don’t know what specific problem you’re solving, you’re kind of like a doctor who prescribes medicine without understanding your patient’s illness.
Think about it. If your clients knew how to solve their problems themselves, they wouldn’t need you.
Your role is to be the specialist who knows how to tackle their specific issue. Are you helping young families find their first homes? Are you assisting retirees in downsizing? Each niche has a specific problem, and you need to be the solution.
If you’ve been making some of these common mistakes, you might find yourself chasing after leads that never convert or wasting precious time on inefficient marketing strategies.
But by identifying the right real estate niche and avoiding these pitfalls, you can attract your ideal clients and secure a steady stream of leads who are eager to work with you as their agent.
If you want to become the go-to agent in your market and fill your calendar with appointments, download The Listings Lab Method Guide to learn more. No more wasting hours at open houses, no more cold calls, just an efficient, targeted strategy.