If there was one thing that I salvaged from my brokerage career pre-2008, it was my reputation in the industry as an expert in new construction primarily in Lincoln Park, Lakeview, and other northern neighborhoods of Chicago. I spent most of my time between 2001 and 2007 studying the zoning of these neighborhoods, and I became so knowledgeable about them that I could tell you pretty specifically what you could build on a particular sized lot, on a particular street, and what the market was clamoring for at the moment is terms of finish level, et cetera. As development started to come back in 2010, my special expertise proved useful to my developers.
I think it’s vital to your long term success in real estate brokerage to be “known” for something.
Be the person who is the go-to expert on zoning in a specific neighborhood; be the person who has all of the answers about owning waterfront property; be the person who knows every single deal done in a specific high-rise for the last decade. “______________ sells a lot of real estate in ______________ (building, neighborhood, product type, price point)."
Since we focus on relationships, we do need to be generalists and be able to work a variety of different product types and locations. But it is important and valuable to put time, effort and resources into building a NICHE that will be the bedrock of your business for the long term.
Fair warning: building a NICHE is a farming method that requires you to commit to consistent effort over the long term… minimum of 1 year but most likely longer. To build a really solid foundation, we’re talking 3 to 5 years. In fact, you could start “farming” a location and it might take 6 to 9 months before you see any results. The results will start slowly, then they'll build, then they'll multiply.
Here's an example of what this could look like for you.
- You send postcards to a building for 6 months.
- Someone in the building gives your name to a renter looking to rent. During the process, they realize it is better to just buy in the building.
- The unit type they want is not available in the market so you send out handwritten notes to that tier looking for a unit owner that might want to sell.
- A unit owner comes forward who is relocating out of state. They say they are putting their unit on the market shortly in the spring but are willing to show it.
- The buyer sees it and wants to put in an offer. The deal gets put together with a 4.5% commission for an off market transaction.
- Seller is happy. Buyer is happy.
- Seller refers you another seller 6 months later. Buyer, over the next 3 years, refers you 3 other people in the building because you stayed in touch.
- Four years later, you are an expert in the building, know the tiers, know the door staff and property manager. All the while, you’ve been consistently dripping marketing to the building.
- Your reputation of being a professional and an expert in the building make you THE real estate broker of choice because of your track record.
These steps might sound really easy, but this is an actual case study of one of our brokers who has created exactly this scenario. The base of this broker’s business is in a particular building but he/she sells all over the north side of the city as well.
My suggestion is that you look at building a NICHE as a “side hustle." Treat it like a completely separate business in the beginning. Invest in it. Build a goal around it financially that does not address an immediate financial need. For example, "I am going to pay off my mortgage in 7 years instead of 15 with the commissions I make off of this building. I am willing to be patient and do it the right way knowing that if I stay at it, I will be successful.”
Building a NICHE has a tremendous ROI potential. It's difficult only because it does take patience and consistent effort. Your NICHE can be all kinds of things... a specific building or neighborhood... a specific talent or expertise... a specific product type in a specific price point... a specific demographic.
Identify your “super power,” invest in it, water it, be patient, become an expert, be consistent and repeat.
Eight years after teaching my first class on how to build a real estate brokerage business, my reputation - my own NICHE - is now that of being a COACH. I still have my responsibilities of managing a brokerage, but my SIDE HUSTLE is high performance coaching. I used exactly the same formula I described above.
You can do it too. Get started on strengthening your business by building a niche reputation. Go identify your “super power,” invest in it, water it, be patient, become an expert, be consistent and repeat.
