Are you wearing yourself out with too big of a target market?
I speak to a lot of agents that are covering big territories. There’s a strong temptation to target too big of a market. I discovered pretty quickly that this is a failing strategy. To be a top real estate agent in my target market area, I’ve chosen not to drive to neighboring towns or even certain subdivisions if they’re too large. I take this very seriously and I strictly stay within a specific target market area that I’ve carved out and consider myself an expert in. Why do I do that? There are multiple things that can go wrong if you haven’t niched down to a particular target market area.
Why a Broad Market is a Failing Strategy
Below are four main things that I’ve found that can go wrong if you have too broad of a target market. I’ll explain why…
- Not being able to manage your time strategically
- Not being able to serve my clients at the highest level
- Being a generalist rather than a specialist
- A poor work/life balance
Not Being Able to Manage Your Time Strategically
If you have to drive an hour each way just to get to a showing or take a look at a prospective property, you’re not using your time wisely. There are a lot of times when I need to accompany a showing. To figure out how to get the lights on the shades up the music on, or to fix any number of issues that can go wrong. This is time-consuming even when the property is only a few minutes away. Add in multiple showings in one weekend and you’re setting yourself up for failure if there spread out across a wide area.
Not Being Able to Serve Your Clients at the Highest Level
If your client needs you to check on the status of repairs that are being done, you may not be able to do so in a timely manner that will satisfy your clients. I have a client that is a second homeowner out of town and they have some work that’s being done in the home. They’ve asked me to go check on the status of the work that’s being done, and I’m happy to jump over and do so. If I had to drive an hour round trip just to check on that house, think of how much that adds up. I may not be able to meet their expectations if they have to wait for me to check it out.
Being a Generalist Rather Than a Specialist
If you’re not able to answer specific questions about each market that you’re serving off cuff, you’re not going to be able to market yourself as a specialist. If you have 10, 20, 30, 40, 50 subdivisions or neighborhoods, HOAs, and school districts, big geographic areas, are you really a specialist in those markets? And if somebody said, “Hey, can you tell me the difference between this neighborhood and that neighborhood?” Would you know the answer right away and be able to speak confidently about it?
A Poor Work/Life Balance
If you’re targeting a large market and trying to serve everyone, you’ll be spreading yourself too thin. To achieve freedom in your life to get to do the things that you want to do for yourself and your family, you need to prioritize and specialize. Only then can you truly live the dream.
How Niching Down Can be the Answer to Your Problems
If you take the time to step back and focus on a target market area, you’ll save yourself time and give yourself the freedom both professionally and personally to live the life that you dream of. So, let’s talk about how you can go about niching down.
5 Steps to Narrowing Down Your Niche Target Market
- Pull data from your last 12 months of transactions and create a report showing the location and the median price points.
- Figure out the luxury homes that are selling for above the medium range
- Get out a map and start circling those areas
- Research the MLS to see how many transactions there have been in that area and identify if they have enough volume for your goals.
- Start doing research and become a specialist in those markets
It can be scary to slash your perceived market. Many agents are fearful that they’re going to miss out on transactions by doing so. The reality is that you’ll get more business when you’re perceived as an expert specializing in a certain area. You’ve gone deep and that will show. Spend more time being a specialist and stop wasting time trying to be a generalist serving everyone and spreading yourself too thin. And besides, you want to stand out from other agents, not blend in.
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