April 29, 2010

Is It Better to Be a Jack of All Trades or Master of One? - Part I

This is Part I of a two-part series.  Part I will address specializing (focusing on a niche).  Part II will address generalizing (trying to sell to anything with a pulse).

The Specialist
Developing a niche means defining your market according to certain criteria and then targeting your marketing efforts accordingly.  It can be an effective and lucrative strategy. [Sidebar: if you decide to specialize be sure to comply with Fair Housing Laws].

Real estate professionals who focus on a niche believe "niches bring riches."  For example, I know of a realtor who's also a real estate investor.  Before he started investing he was eager to know everything there was to know so he read a lot of books and joined a bunch of local real estate investment groups. He attended the meetings regularly, networked with people, and even participated in online forums. He learned a lot and in a short period of time he built solid relationships. Eventually, he got a few deals and before he knew it he was getting lots of referrals and raking in the Benjamins! Now, most of his clients are real estate investors. He believes focusing on investors enabled him to streamline his marketing efforts and build an expertise.

He focused on investors, but there are tons of niches you can choose.  Here's just a few:

1. Type of Property
a. Commercial

• Retail
• Office
• Apartment/Multifamily
• Mobile Homes
• Mixed-Use
• Industrial 

b.Resort/Vacation Homes
c.Condominiums
d.Luxury homes
e.Fixer-uppers
f.New construction
g.Lakeview/Waterfront
h.Timeshares
i.Historical
j.Farms
k.Houseboats
l.Mountain
m.Estates

 2.Type of Buyer
a.First-time homebuyers
b.Baby boomers
c.Seniors
d.Relocaters
e.Public servants (teachers, police, firefighters)
f.Military families
g.Rich and shameless

3.Type of Seller
a.FSBOs
b.Short sales
c.Foreclosures
d.REOs
e.Expired listings

4.Geographical Location/Specific Neighborhood

5.H.I.P. (Hobbies, Interests, and Passions)
a.Car enthusiasts
b.Pet lovers
c.Bikers
d.Golfers
e.Volunteers
f.Bellydancers
g.And so on and so on . . .

6.Partners and Other People's Clients

a.Attorneys
b.CPAs
c.Medical Professionals
d.Appraisers
e.Contractors
f.Title companies

Being a specialist has its advantages:

1.May have more in-depth knowledge because your time and energy is focused on the niche. Easier to become an expert.
2.May gain a competitive advantage because of your expertise.
3.May be more cost effective to market to a niche because you're not trying to catch every fish in the sea, just the hungry fish who want exactly what you're selling.
4.May be able to charge higher fees.

And disadvantages:

1.In a down economy, may not have enough business to provide a steady stream of income if the niche is no longer "hot."
2.May have to turn clients away if you don't have enough expertise in areas outside your specialty.

Specialists believe the advantages outweigh the disadvantages because as a practical matter, they say, you can't be all things to all people. But generalists say, "Balderdash!" They can do it all.

Stop by next week to find out why being a Jack of All Trades may be the way to go.

Until next time.

Be well.

Posted by: shana@lakeviewtitle.com