Many housing experts continue to speculate about the future of homebuying and home selling as the calendar turns to 2023. The market experienced a record-breaking year in 2021 when homes were sold within hours of listing. However, mortgage rates have risen, and the market dramatically dropped in 2022.
Although it can be hard to predict the future of the real estate, one of the best ways for agents to protect themselves against dramatic fluctuations in the market is by finding a niche. It’s time to specialize in a specific type of property or buyer.
Although there are no guarantees, agents can find a niche to help them gain expertise that they can use to make a better career.ย
There Are Several Real Estate Avenues To Pursue
1. Vacation homes and rentals
The National Multifamily Housing Council reported that 43 million households in the United States are renters and 36% live in apartments. This niche, along with the vacation rental market, includes traditional single-family homes and multifamily apartments.
- Room rentals
- Apartments with full-service
- Housing for students
2. Luxurious homes
Selling high-end homes in the highest tax bracket can be very lucrative, but it can also prove challenging. People with the most wealth often have the most detailed wish lists. You’ll need patience, knowledge, and resources to succeed in this luxury market.
Noting that luxury home sales are as uncertain as other types of homes is essential. The sale of the most expensive homes dropped more than 38% by the end of 2022 — the most significant drop in history.
3. Flipped properties
Property flippers have specific needs. They want to make as much money as possible and get the best price for their property to put the profits into another property. This niche is an excellent opportunity for real estate agents to earn steady work by helping buyers find distressed properties and sell them consistently.
4. First-time homebuyers
A first-time homebuyer is a niche you will love if you are comfortable explaining basic real estate transaction principles and handholding. Real estate agents are needed to help millennials, the largest age group in America, navigate their first home purchase.
5. Unique architectural homes
Do you love Gothic details? Pine for a well-maintained Craftsman bungalow. Do you prefer to explore the halls of an antique Victorian? These homes are unique and need to be sold by someone who can find buyers who share the same appreciation. You will need to ensure that there are enough homes in your area to practice the type of architecture you want to specialize in.
6. Specific ZIP codes
The ZIP code 90210 symbolized all things lavish and delectable in California during the 1990s. It demonstrated the power of five numbers in dictating a person’s economic and lifestyle status. It is the same today.ย
However, your niche does not have to be for the rich. Consider:
- 14618: Rochester, New York
- 37604: Johnson City, Tennessee
- 02760 North Attleboro (Massachusetts)
These booming markets saw homes sold in 10 days or less in 2022. Creating a custom comparative market analysis with our nationwide MLS may aid you in your search.
7. Historic homes
While some buyers may fantasize about owning a historic house, it is not always possible. These homes are often protected by codes prohibiting certain exterior and interior modifications.
But some purists would love to stop time at their homes. They need a natural agent to help them navigate the details of buying this type of property. MyState MLS can pull historical data well-over 20 years prior to the present!
8. Type of buyer
Another lucrative niche is to specialize in a particular type of buyer. Agents may want to target wealthy investors or buyers of private property, commercial real estate or investment property loans.
Buyers who require creative financing options, such as owner financing or rent-to-own financing, are another possible niche. This can help people with bad credit to afford a home.
9. Foreclosures
After a loan default or sale, the lender takes over real estate-owned properties and foreclosures. The bank aims to recover as much as possible once it has taken ownership.
Although this can be a challenging niche in real estate, once you are familiar with the market and the property values in the area, you can reap the benefits of your efforts.
It is best to start in this niche by working with a company that understands real estate and has had experience selling and buying it.
10. Situational
Situational real property transactions are not included in “normal” sales. These could consist of short sales, relocation or the sale of an inherited house.
These transactions can be susceptible in some cases and require you to understand tax codes and real estate law. Your services will be highly sought once you have gained experience in these areas.
11. Communities
Some communities prefer one agent to represent all homes in their community. This means you would work with sellers and buyers to complete transactions within a particular development.
This niche has two subspecialties: retirement communities and gated communities. Each will attract a buyer looking for an exclusive set of amenities and willing to pay a homeowner’s fee to preserve a certain level of security and aesthetics.
12. Outdoor amenities
You might be interested in a niche if you enjoy the outdoors, hiking, or spending long hours on the water. The following are some of the areas that might interest outdoor-related realtors:
- Lakefront homes
- Mountain homes
- Oceanfront property
- Farms
- Vacant land
These homes may have different property taxes, zoning, and development rules. It is essential to understand each outdoor feature before you choose to concentrate on it.
