Agents searching for alternate opportunities within the real estate industry may find the current market bewildering.
In New York City, a city that has always been warm, 100 individuals departed for every 84 who arrived. Knowing what the future of the real estate market holds is not an easy thing to do.
We don’t possess the ability to look into the future, but based on the opinion of the majority of brokers we consulted, there exist six different areas of real estate that agents can leverage to capitalize on the historic market changes that are currently happening.
1. Corporate Relocations
2020 saw a considerable spike in remote working, causing numerous large companies to move from states they had dwelt in for lengthy periods of time to states with less legal requirements and cheaper housing. Examples include Oracle, Palantir, and Hewlett-Packard Enterprises abandoning California in the past year.
We believe that although the circumstances that caused these changes may be momentary, many more big firms will attempt to cut down their costs by relocating their base in the years to come.
It is thought that the rewards for maintaining a headquarters in an expensive city will become less advantageous over time in terms of their reputation.
Many larger businesses have set up ties with property brokers for employee movement, although a lot of them are not legally binding, and not all workers take advantage of them. Incorporating an area of expertise in corporate relocations into your company could lead to obtaining more leads and accomplishing more successful transactions.
Using LinkedIn as a form of prospecting is an amazing opportunity for real estate agents to explore the business of home relocation without having to make drastic alterations to the way they look for business.
Getting our material in front of those that make choices is a lot simpler and since the platform is built for professional interaction, it is easy to access individuals in companies which are moving people or their headquarters.
2. Rentals
There has been an increase of 17.8% in home prices compared to last year, yet the employment market is not doing well. Because of this, more people are looking to renting as a housing option, causing lease prices to go up.
An increasing number of “digital nomads” requires them to seek out housing choices that permit them to move around nationally and internationally. Rentals that are currently occupied could be an extremely profitable sector for real estate agents.
Agents who were involved in the promotion of high-end and exclusive rental properties could sometimes make large sums of money, in some cases as much as five figures, from a single rental agreement.
These results may not be the norm in all rental markets, but it does demonstrate that property managers can make a significant amount of money. There are two different approaches that can be utilized in smaller markets: 1. Increase volume, and 2. Get exclusive rental contracts with developers.
If you’re in an area where rental housing is in high demand, consider working with a real estate agency that offers only rental properties so that you don’t need to use Outside Listing Resources. If your state requires it, you should obtain a license in property management. Reach out to constructors and developers to begin.
Gaining proficiency in digital marketing is a great way to make your real estate management business stand out from the rest. Discover how to construct a WordPress site that can take care of rentals and present a complimentary one to a neighborhood programmer.
If you are looking to enter the sales field, begin teaching those around you about investing in property, with a focus of renting it out.
3. Vacation Communities
Agents have the opportunity to specialize in vacation homes in places like The Hamptons in New York, which we expect to be an emerging market in the upcoming years.
At the outset, a lot of these properties experienced a huge surge of new buyers in addition to skyrocketing prices in 2020. Additionally, due to the backlog of yearning for travel that has been accumulated during the pandemic, the vacation rental sector is likely to have a major boom.
If you have access to the list of properties located in a resort area through your local MLS, utilize an IDX website for promotion to possible customers.
The objective is to bring together listings from a vacation spot on a page on your site by using IDX gadgets, followed by driving both organic and paid traffic to that page.
This is the perfect opportunity to create an IDX website if you do not already have one. Find out how to construct an IDX real estate website utilizing this comprehensive guide.
4. Luxury Buyers and Listings
It is not a shock that the wealthy who had possession of these resources became even wealthier in 2020, given that economic slowdowns and inflation tend to result in increased asset prices.
Equity markets reached unprecedented peaks, with cryptocurrency gains even more spectacular. This was a significant factor in accelerating the cost increase of luxury residences.
If you live close to a high-end neighborhood, it is highly probable that the amount of properties available is incredibly scarce and most of the homes are being sold above the original listed price. The argument concerning when the luxury market will eventually settle down is ongoing, however at the present time, it is still highly successful.
It is not difficult to locate affluent customers who wish to engage in this market. You can promote yourself on Facebook or Google, connect with people, or join an upscale group.
It would be beneficial to refine your branding and advertising materials before beginning. Having a reliable and successful business reputation is even more essential for real estate representatives who are entering into the high-end market.
5. FSBO
Ryan Gorman, the CEO of Coldwell Banker, noted that even though some agents may be hesitant to work with FSBO since investors appear to be obtaining a lot of the stock, the actual proportion of the market accounted for by investors is still “extremely minor”.
It makes sense when you think about it. Even though the property market is thriving, it doesn’t mean that homeowners have acquired the skill of selling houses all of a sudden!
Therefore, while sharks attempt to locate homes to list, real estate agents can benefit immensely if they focus on selling homes that are being listed as For Sale By Owner.
It goes without saying that trying to sell a house as a private seller cannot be considered a simple task. Many homeowners have the conception that selling a residence is an effortless process due to the current market conditions. Discovering the solution is key when the truth finally dawns.
You can start by learning and practicing FSBO scripts. Chris provided a breakdown of his top seven scripts for For Sale By Owner (FSBO) and explained the reasons why they are successful.
6. Location
The main speciality of real estate is usually focused on geographic area, providing services and properties mainly in a specified area, such as a particular town, postcode or county. Real estate agents present themselves as having expert knowledge of a certain locality in order to get the best possible results from their efforts to obtain new customers.
By showing off your expertise on the regional market to potential customers and participating in activities in the area, you can create an image and better confidence.
Picking the appropriate locale to focus on is pivotal since too many agents in a certain region or too few will impede your potential. These types of areas are generally referred to as “farming regions.” Ideally, you should pick a spot not far from your present home that you have some familiarity with.
Once you’ve discovered the suitable spot, ascertain the proper apparatus to achieve specialist status. For instance, Offrs utilizes analytical forecasting to offer limited listing leads before anyone else knows about them.
The market data that is unbelievably precise assists you in targeting consumers and establishing connections with them before other real estate agents, allowing you to acquire more listings in the area you are aiming for. Begin taking advantage of Offrs to grow your status in one of the most lucrative areas of real estate.
7. Property Type
Another example of frequent classifications in real estate are the kinds of properties, since there is such a vast range.
Niching in specialized properties can assist you in gaining proficiency in the design, specifics, and worth of one-of-a-kind ownership classifications. As a result, you are a valuable asset to people who are either selling or buying these types of properties.
A few property types you could choose for a real estate niche include the following:
- Single-family homes: Free-standing residential structure that sits on its own land
- Multi-family homes: A single building with multiple units for more than one family living separately
- Condo (condominium): An individually owned residential unit in a building complex with like units
- Co-ops: Specific to New York, this is a type of property owned by a corporation made up of the owners within the co-op
- Commercial real estate: Consists of buildings used for commercial purposes, including office buildings, warehouses, retail buildings, and many others
- Historic homes: Homes over 50 years old and connected to a historical event, notable individual, or historical style, or which provide other types of historical information
If you have yet to figure out how to break into the real estate business, begin by taking a look at Zillow for available properties. By utilizing its search filters, determine the number of varied real estate types present in the specified ZIP code, city, or locality.
Take into account the amount of residences available to rent or buy in the present timeframe as well as review the quantity of dwellings sold during the past few months. Select a type of real estate that has a sufficient amount of available options to maintain a continuous flow of deals.
Real estate agents specializing in specific types of properties can make a lot of money, provided they pick the correct kind of property for their locality.
Research indicates that the majority of real estate transactions last year had been for single-family houses. This implies that it might not be as lucrative to purchase condominiums, flats, and townhouses in various parts of America.
The specific real estate niche that would be most advantageous for you to pursue will depend on where you’re located, your specific interests, and the skills you possess. Be certain that you take the time to study thoroughly before engaging in a fresh real estate speciality.
In case you do not have one, it is essential to draft a real estate business plan for yourself in order to set objectives and generate a plan for achieving these goals that is able to be executed.
8. Specific Types of Buyers
Earning a living as a buyer’s adviser could be very lucrative – 87% of purchasers in 2021 managed to get and buy their residence with the aid of a real estate agent.
A real estate agent’s role often includes working with purchasers, though it can be divided further into more precise areas. For example, buyer real estate niches may include the following:
- First-time homebuyers: Buyers looking to buy their first homes—this category made up 34% of all homebuyers in 2021.
- Luxury buyers: These are high net-worth individuals, many of whom already own multiple properties or upscale, luxury properties. By purchasing multiple residences, they are able to spend time in each home throughout the year.
- Investors: Investors specialize in buying and selling property, so while they’re receptive and attentive, they are also usually very savvy. Unlike homebuyers looking for a dream home or place to start a family, investors are usually seeking out properties with the potential to gain value quickly, with the goal of selling at a profit.
- Commercial and retail buyers: Commercial property buyers are often business owners (or their representatives) who are looking for space for their operations.
- Rent-to-own: The rent-to-own buyer isn’t ready to buy yet. They may not have sufficient financial means to make a down payment or may have a poor credit score, which limits their ability to get a mortgage. However, they want to invest in a property with the goal of ownership rather than simply renting a home without building any equity.
Knowing what each kind of customer needs will guide you when trying to generate leads, approach potential customers, and change leads into customers.
It’s beneficial to make up consumer avatars for various types of purchasers to comprehend precisely the different types of assets, spots, and services that they will need.
For example, newcomers to the housing market typically require more communication and supportive material to comprehend how purchasing a home works, in addition to some advice to evade when choosing their first house.
In contrast, real estate investors searching for a market niche are likely to pay closer attention to discovering an agent who can effectively evaluate investment properties, comprehend monetary equations, and secure top bargains.
Once you have started working with purchasers, focus on this specialized market for continued commerce or obtain assessments that will demonstrate your worth as a purchaser’s agent to obtain recommended business from your connections or former customers.
Conclusion
Having a real estate niche isn’t a requirement. Many successful real estate agents favor taking on multiple customers in various deals, therefore they have a number of services to provide.
If you want to increase your success as a real estate agent, gain an authoritative standing in your local area, and quickly build your prestige, the best plan is to specialize in a specific area of real estate.
