Are you a real estate agent looking to make a splash in the industry? The key might just be finding your niche. In a field as vast and varied as real estate, specializing in a particular area can set you apart from the competition and open the doors to new opportunities.
Whether you’re a seasoned pro or currently in real estate school, honing in on a niche can be a game-changer for your career. Read on to explore some of the top real estate niches to consider and discover why they might be the perfect fit for you.
What Real Estate Niches Can I Specialize In?
The most successful real estate agents typically aren’t jacks of all trades. They have a specialty or a niche. When you become an expert in a specific area, you’re better positioned to serve clients seeking your specific knowledge – and have a valuable tool for marketing your services.
Here are some niches to consider in 2024.
1. Green or eco-friendly properties
Consider specializing in eco-friendly properties as a real estate agent. To enter this niche, learn all about the LEED certification process.
LEED is a global standard for energy-efficient buildings. A building must have a specific number of points to be LEED-certified. Those points are based on building design and construction, building operations and maintenance – and other factors.
Real estate agents educated in this process and other eco-friendly methods have an advantage over others.
2. Investment Properties
Investment properties can be a gold mine for both you and your clients. According to the most recent Colibri Real Estate salary guide, the average income of agents specializing in this niche is $80,650.
Specializing in this niche means helping investors identify and acquire properties that promise substantial returns over time.
3. Foreign investment
Real estate agents who pay attention to foreign markets and can leverage their dollars to invest in timely properties overseas earn a similar amount, though slightly more, than agents who find success investing domestically. If you have contacts in and knowledge of other parts of the world, you can leverage this into a real estate niche.
4. Relocation
Relocation can be lucrative for real estate agents because clients who are relocating typically buy and sell executive-level homes.
5. Commercial properties
Commercial real estate can be highly lucrative. In fact, the average salary of a commercial real estate agent (according to the latest data gathered by Colibri Real Estate) is $193,644.
You don’t need additional certifications or licenses to become a commercial real estate agent. However, more training is beneficial. If you are interested in this field, find a mentor in this niche and take continuing education courses focused on commercial real estate.
6. Multi-family properties
Some real estate agents focus on multi-family properties, meaning they help clients buy or sell duplexes, four-plexes, or small apartment buildings. (Buildings with more than four units are typically considered commercial properties.)
7. Property management
If you enjoy working with tenants and property owners, property management could be your calling. The demand for professional property management is on the rise, and this niche offers a reliable income source. In fact, according to the Colibri salary guide, property managers earn an average of $73,609.
8. Luxury real estate
If you’re drawn to the glamorous side of real estate, specializing in luxury properties might be your ticket. Dealing with high-end clients and exquisite properties can be challenging and financially gratifying. Luxury real estate agents earn an average salary of $143,333.
Colibri Real Estate’s sister school, The Institute for Luxury Home Marketing, can help you earn a specialized certification in this niche. In addition, you’ll receive access to unlimited, free continuing education courses through McKissock Learning to stay up to date with your compliance requirements.
9. Residential properties
Of course, we must include the bread and butter of the real estate industry – residential real estate. Residential properties are always in demand, whether you’re working with first-time homebuyers or seasoned sellers. This niche offers a broad scope for growth.
Residential real estate agents earn $80,769, which is significantly higher than the average annual salary in the U.S.
10. Condos
Condo living appeals to a broad spectrum of buyers. With the right approach, you can tap into a lucrative market, offering clients a convenient and often more affordable alternative to traditional homeownership.
It’s worth noting that this niche reported the highest annual income, according to Colibri’s salary study. Real estate agents focusing on condo transactions reported an average income of $280,000.
Which Real Estate Niche Earns the Most Money?
If you work in an area with many condos, consider focusing on this lucrative niche. According to the latest data, agents who focus on commercial real estate and luxury properties also do well.
However, don’t overlook the commissions you can make by being your area’s most knowledgeable residential real estate agent.
Finding Your Niches in Real Estate
How do you find the right real estate niche for you? Here are some tips on how to narrow your business’ focus.
Analyze local demographics
One way to find your real estate specialty is to research demographic trends. For example, there may be a surge of Baby Boomers or Millennials in your area, which presents a perfect opportunity to develop a niche.
You should also pay particular attention to underserved groups in the real estate market, such as the U.S. Hispanic population. Similar to other ethnic demographics, this group includes several subgroups, such as Latinos, Cuban-Americans, Dominicans, and others. Therefore, you should be cautious about alienating these subgroups when working with larger market segments.
Pinpoint your passion
Why not turn your personal passion into your real estate niche? Think about what you love about real estate. Do you love historic homes? Rehabs? Or modern, energy-efficient construction? What do you know really well? What part of your job do you always enjoy discussing with others? And what designations or certifications have you received that set you apart from other real estate professionals?
Whatever area of the real estate profession comes to mind when answering these questions is likely where you will find your niche.
Identify your favorite client category
Identifying the type of client that best matches your skillset is a very effective strategy for finding your real estate niche. For example, some agents only work with sellers, while on the other hand, there are buyer agents who do not list at all. Whatever the case, the happier you are with a specific client category, the more successful you will be at providing them with their needed services.
Tap your existing networks
It’s essential to consider the other organizations you belong to when defining your real estate niche. For example, are you involved in school, church, youth, or community groups? If you are, it’s likely that you can use your involvement in these organizations to your advantage.
Creating relationships with those in your community is a great way to develop your niche. It also provides you with the opportunity to market yourself and your skills as a real estate professional.
Earn a professional designation in a specific real estate niche
Once you’ve determined your real estate niche, one of the best ways to explore it is by earning a specific designation. Examples of designations include:
- C.F.S. – Certified Financing Specialist®: recognized for their expertise in the latest trends in home and property financing.
- C.P.S. – Certified Property Management Specialist®: recognized for their expertise in comprehensive, efficient property management systems.
- C.S.S. – Certified Seniors Specialist®: recognized for their expertise in serving customers in the age 55+ demographic.
- C.T.S. – Certified Technology Specialist®: recognized for their expertise in leveraging technology in real estate brokerage.
- C.L.H.M.S. – Certified Luxury Home Marketing Specialist™: recognized for their expertise in marketing luxury or upper-tier homes.
Find Your Niche with Colibri’s Continuing Education Offerings
Prepare for working in your niche by signing up for continuing education courses through Colibri Real Estate. Our continuing education courses will help you renew your license and prepare you for your area of specialization.
Colibri Real Estate offers hundreds of state-approved courses with flexible learning options. And with over 25 years in the industry, you know that the advice you get from Colibri Real Estate’s instructors will be top-notch!
Sources:
- Belle Wong, J.D. “Average Salary by State in 2024.” Forbes, November 8, 2023. https://www.forbes.com/advisor/business/average-salary-by-state/.
- LEED Certification Process Overview. Accessed February 13, 2024. https://support.usgbc.org/hc/en-us/articles/4404407074323-LEED-certification-process-overview.
