17 Most Lucrative Real Estate Niches From the Pros

1. Homeowners Who Are Downsizing

Chuck Vosburgh, Licensed Realtor, NextHome Gulf to Bay

My wife Pat and I specialize in downsizing. That includes people who are moving to a smaller home because of changes in health, kids moving out, moving to assisted living, and also death and divorce. We have specialized skills in helping people determine if moving is feasible and in their best interest. If it is, we help plan for a smooth transition. We’re also experts at dealing with the emotional needs of these kind of sellers. Pat had 25 years’ experience as a social worker before she was a real estate agent and we both love helping people transition to the next chapter of their lives. We know that making the right move can add years to a person’s life and dramatically change their quality of life for the better.

2. Expired Listings

Jennifer Okhovat, Realtor®, Compass

My “niche” in real estate is expired listings or listings that were previously listed with another agent and that did not sell before. I got into the groove of this niche when I was a brand-new real estate agent, as prospecting for expired listings is one of the main avenues to find clients when an agent is new in the industry. I became passionate about finding out the reasons why properties didn’t sell, especially in a healthy market. I have now sold more than a dozen properties that were listed with agents before me — often at the same price with little to no activity. I market myself to sellers as being able to strategize a fresh way to reintroduce their property to buyers and repackage it to get it sold.

3. Real Estate Investors

Bruce Ailion, Realtor and Attorney, RE/MAXTown and Country

One niche I work is investors. I find these by advertising, word-of-mouth, and research. This is a natural market for me, I am not an emotional, touchy-feely agent. Investors want a direct, bottom line-oriented approach — no fluff, just the facts — which plays to my personality. Additionally, I am highly experienced and trained in this area. Having a master’s degree in real estate and being a licensed attorney demonstrates the analytical skills investors seek. I am an investor and have been for nearly 40 years and have a management company that has a history of property management and can take on management for an investor. It is a natural fit.

4. Vacation Rentals

Jim Prugh, Owner, Lindsborg Vacation Rentals

Several years ago, I discovered a small town in central Kansas, population about 3,500. After fixing up a few buildings downtown, I started some vacation rentals. I often received phone calls from individuals on temporary assignments of as little as a month and some up to a year. They didn’t relish the idea of staying in a motel for several months, so they were looking for an affordable alternative.

After a couple dozen inquiries, I realized there was a market for this segment of real estate development. My first corporate housing project (sometimes called “executive stay”) led to a second and then a third. The third property has five bedrooms so that it may also function as corporate co-housing that is very popular in San Francisco and New York City.

5. Current FSBOs

Diana Bourgeois, Staff Writer, Fit Small Business

Focusing on properties that are for sale by owner (FSBOs) may seem counterintuitive because you’re spending time and energy on homeowners who have already decided not to use a real estate agent. However, the approach often pays off when FSBO sellers get overwhelmed and ultimately decide to list their home with a professional. If there are enough FSBOs in your farm area to support a niche, call them directly or send brochures with tips and tricks for selling a home — when they’re ready to move to an agent, you’ll be their first call.

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6. Affordably Designed Flips

Courtney Poulos, Owner & Broker, ACME Real Estate

My company, ACME Real Estate, is the premier brokerage in Los Angeles for renovation resale. For nearly a decade, we have been setting the standard for how branded and non-branded flips in transforming neighborhoods are marketed, staged, and presented to the market. With a consistent architectural photography style, on-trend marketing, custom designed magazine-style flyers, and lifestyle-based social media, we present affordable design with an aspirational edge.

7. Up & Coming Neighborhoods

Ron Humes, VP of Operations, Post Modern Marketing

We all know that we could make a fortune if we had a crystal ball that told us what property values would do in the future. Well, with a little work, we can build our own crystal ball. By studying the proper data and signs, we can get an idea of a property’s value into the future.

Each city and county typically has planning and zoning divisions that present approved or proposed future land uses, create zoning maps, and have meetings to discuss and vote on future land usage plans. If analyzed properly, this data will indicate the direction of the property value moving into the future and the speed of that movement. A landfill might indicate a sharp drop in surrounding properties, while an upscale residential or commercial development can indicate a spike in value. Repeated signs of improvement or decline in areas should be noted and considered carefully. An area can change from a bad investment to a good or great investment over short or long periods of time or vice versa.

8. Small, Targeted Market Segments

Dan Lesniak, Founder, The Keri Shull Team

I use a process called Segmentation, Targeting, and Positioning (STP), which was the main strategy I used in my first year in real estate to sell over $22 million. You need to break the market up into various segments (geography, demographics, lifestyle, occupations), pick a target that has enough turnover and sales to be meaningful, but not so big you cannot make an impact, and then position yourself to that target segment as the person who can uniquely offer the most value. I chose a geographic niche of 200 condo units and expanded from there after initial success. You need to narrow your focus and dominate that niche.

9. Off-Market Properties

Alexander Romanov, Acquisitions, I Will Buy House

We are a real estate investment company and we focus on buying off-market properties in Seattle, Washington. In a hot market like Seattle, we need to focus on a niche in order to find good deals to purchase. Over the last few years, through trial and error, we discovered several niches that work well in our market.

The best performing niche for us has been the retiring homeowner population. These homeowners typically have lived in their properties for over 20 years and have built up substantial equity in their homes. Furthermore, retiring homeowners don’t want to deal with the hassles of a traditional sale, which involves fixing up the house, organizing and staging the property, scheduling open houses, etc. Therefore, our value proposition of an easy and straightforward cash sale is appealing for the retiring folks who want to sell quickly and move on with their lives. We stumbled on this niche by marketing to many different niches and then analyzing the ROI for each type of niche.

10. Specific Geographic Areas

Christopher Linsell, Staff Writer, The Close

Specializing your message to a particular audience is a great way to identify yourself as the expert in your area. If you want to get a leg up on your competition, start digging deeper into more subtle geographic niches and understand what sets these homeowners apart from others.

For instance, in the world of waterfront listings, not all lakes are created equal. Some may own a home on one lake because it’s the premier fishing spot in the entire state. Some may choose another lake because it’s perfect for water skiing and jet skis. These choices don’t just speak to lifestyle, they speak to where these homeowners are spending their time, their money, and their attention.

Don’t be satisfied with a niche like “waterfront.” The deeper you dig into the communities you want to market to, the more you will understand why the communities exist in the first place and the more effective your marketing will be.

Examples of geographic niches include:

• ZIP codes, cities, and counties
• Neighborhoods and subdivisions
• Waterfront and beachfront properties
• Financial and business districts
• Downtown areas or design districts
• School districts

Once you identify a geographic niche, tailor your marketing materials around the area by highlighting local amenities and targeting area residents. With ProspectsPLUS!, you can design and order postcards, direct mailer brochures, and door hangers to directly reach homeowners in your niche. Click here to get started with your custom marketing materials for geo-targeting.

11. Single Family Residences

David Roberson, Esq., Principal, Silicon Valley Property Management Group

Silicon Valley Property Management Group (SVPMG) manages 150+ client properties on the San Francisco Peninsula. We focus primarily on higher-end, single-family residences (SFRs) for several reasons. SFRs are typically easier to prepare and maintain as compared to a multiunit property or an apartment building. Higher-end rentals tend to attract a higher socio-economic status tenant, and because of that, we have less problems with rent payments, complaints about the properties, and overall cooperation with the rental situation. Finally, higher end SFRs are easier to rent because most typically they have significant curb appeal, are in higher-end neighborhoods, and are overall attractive propositions for tenants looking for a suburban residence. The confluence of these above reasons provides the rationale for our business model.

12. At-Home Closings

Kara Cook and Heather James, Co-Founders, Cook & James

Kara and I founded Cook & James in 2006 and innovated “at-home” closings because we saw a void in how lawyers conducted real estate closings at traditional firms. We saw what an inconvenience it was to have to take off work or drive across town, so we innovated something called “at-home,” which essentially means we will do the closing anywhere. We’ve figured out the closing technology essentials so all that is needed is a cellphone signal.

13. Referrals from Colleagues

Alyson Silverman, Team CEO, KW Calabasas

Agent to agent referrals are the best. They are loyal and usually from your friends. For my team, it was a natural progression since I travel several times a year to national Realtor conferences. Since my friends that I enjoy spending time with are also top producers, there is already a high level of trust and comradeship. And of course, you always want to help your friends. Breaking bread with colleagues is always a way to bond on a deeper level so I make sure I share my meals with like-minded people. You not only trade referrals, but a lot of trade secrets and tools! Since I personally love in-person networking as opposed to cold calling, this is right up my alley and very fun!

14. First-Time Home Buyers

April Macowicz, Team Lead & Broker Associate, The Mac Group

Working with first-time home buyers requires a lot of patience, excellent communication skills, and a thorough understanding of different programs and benefits to the buyer. This particular niche is not for every agent and definitely takes a lot of nurturing and understanding. However, it is extremely rewarding to see the excitement and to feel the sense of accomplishment from the home buyers when they receive their keys to their first home.

15. Architectural Niches

If you have a background in, or passion for, design, consider choosing real estate niches that highlight your interests and experience. For example, if your area has a large volume of midcentury modern homes, positioning yourself as an expert in midcentury design can help you get more listings and attract buyers who are also drawn to MCM homes. Similarly, positioning your brokerage close to a large historic district is a great way to create a niche in historic preservation or fixer uppers.

Depending on your area, architectural niches may include:

• Colonial
• Craftsman
• Modern
• Midcentury modern
• Fixer-uppers
• Historic homes

16. Specific Demographics

It’s well-understood that people are more likely to sell or buy a home at certain stages in their lives. Your local demographics and real estate market will dictate the most lucrative demographic niche, but there are some groups that are more likely to buy or sell a home. For example, if you live in a college town, consider focusing on the growing number of singles and millennials who are purchasing homes. If your business is based in a large financial district, target young professionals.

Potentially lucrative real estate niches based on demographics are:

• Divorcing couples
• Young professionals
• Singles
• Newlyweds
• Growing families
• Empty-nesters
• Military families

17. Unique Lifestyles

Many homebuyers base their real estate purchases on lifestyle preferences. Real estate agents can capitalize on these preferences by becoming an expert in popular types of communities. This can be as simple as focusing your listings on luxury homes, gated communities, or large, resort-like properties. Alternatively, you can stand out from other local agents by specializing in a more complex niche like fly-in communities, equine properties, or eco-friendly houses.

Lifestyle-specific real estate niches are:

• Luxury homes
• Eco-friendly and smart houses
• Fly-in communities
• Walkable neighborhoods
• Ranches and horse farms
• Resort and vacation properties