One of the most appealing factors of a career in real estate is the diversity of offerings. With so many markets, you could easily work with a variety of clients each month from all over your state, across the country and even internationally if you so choose. However, you may also decide to concentrate your efforts on a particular market, learning the nuances of the properties and customers that more diversified agents may miss.

This isn’t always something that’s an intentional career move. Over time, some agents are simply drawn to a particular niche that suits them, or they discover a passion for a certain area of the business. If focusing on a niche seems appealing to you, the first step may be to obtain a general understanding of the factors involved in the most common niche markets.

A tough market to break into

While not every real estate agent can have a TV show about selling homes in exotic locations, vacation homes represent a niche market that requires local expertise. If you happen to live near a resort or destination town, this may be just the market for you. Even if you are not in a vacation spot, your location likely has luxury homes that will attract affluent buyers and carry big commissions. However, it is not an easy niche to break into, and you may have to make a significant marketing investment.

You may also want to specialize in condominiums, for-sale-by-owner properties or short sales, each of which requires some special knowledge and skills to close the deal.

Be a people person

Instead of focusing on certain types of properties, you may want to think about narrowing your focus to potential customers, such as the following:

• First-time homeowners: Buyers with no experience will need someone who can patiently guide them through the complex transaction, appreciate their level of anxiety and never assume they already know what happens next.
• Singles: No longer is home ownership limited to married couples. About 55 million single Americans own their own homes.
• Seniors: Budget constraints and physical challenges are only two of the special considerations of this population of homebuyers.
• Hispanics: This growing minority group will need agents who understand their unique needs and can help them focus on their goals.

Your own geographic location may offer other choices for niche markets that are begging for someone with the expertise and knowledge to serve them. It may take you years to discover your strengths and passions in the real estate world, and the more you learn about your career, the more you can feed that passion.

Recent TV shows featuring real estate agents who sell multi-million-dollar listings in exotic locations have inspired many to become agents themselves. Others get into real estate because they enjoy the flexibility and unpredictability of the work. Still many more simply love the idea of helping people find the perfect property for their homes or businesses.

The inspirations for becoming an agent are unique to each person. While there are many reasons for becoming a real estate agent, there are also common reasons why so many agents fail. If you have goals in mind for your career as a real estate agent, you may want to consider the following questions.

Have you accurately assessed the market?

You are probably competing with dozens of other agents in your area, so it will be important that you know everything about your market. Who are your clients? What are they looking for? What are the trends? What is the economic climate in your area? Knowing the answers to these and other questions will help you make the most of your time with your clients.

How realistic are your expectations?

Your expectations are too high if you plan to sell a million-dollar listing right away or earn six figures in the first year or two. Despite what you may see on reality TV, most real estate agents earn about $60,000 a year minus the many expenses related to the job. Additionally, it is hard work. If you plan to rely on your friends and family for the bulk of your business, you may find the well running dry pretty quickly.

Are you financially prepared?

Did you quit your job to go into real estate? Hopefully you have put some money aside to get you through the first few years. It is not uncommon for new agents to work quite a while before earning their first commission, and you do not want to be struggling personally while trying to build your business.

Did you include marketing in your budget?

If you work for a broker, you may get a few leads. But you shouldn’t rely on those prospects alone if you hope to grow your reputation as a top seller. A marketing budget will allow you to find your own clients and build a base, and some agents find it is worth going into debt.

Are your clients overworking you?

Eager agents afraid of losing a sale may allow their clients to drag them from house to house week after week and still end up with no sale. This takes up time you could be spending with other clients and can be physically and emotionally exhausting. Instead, develop a list of questions that can help you tactfully narrow down choices for the client.

Are you ready to stay motivated?

Real estate is hard work, and you may find yourself growing weary even if you have had some successful transactions. One way to avoid burning out is to continually update your skills and remain informed on the latest trends and methods. Your continuing education as an agent will play an significant part in keeping you excited about the important role you play in helping others through the challenges of buying and selling real estate.

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