If you’re an agent that’s looking to improve your sales results or if you’re someone that’s looking to get into real estate here’s some important facts you need to consider:
Niche Markets outperform greater metro areas.
This point is easy to make in any metro market, let’s take a look at the Bay Area in California for example.
You have Atherton, California in zip code 94027 which is in fact one of the most expensive zip codes in the country as documented by Morgan Brennan for FORBES.
However, this extremely affluent neighborhood with multiple houses on the market above in the 10 million dollar rage is a staggering contrast to what’s happening in nearby San Jose California.
In San Jose the average sales price is about $580k according to Trulia which itself is quite impressive compared to the national average but it’s actually just average for California standards.
Meanwhile, in Atherton the lowest house for sale in 94027 that I could find was offered for over $2.3 million dollars and the most expensive was $33 million dollars.
Location location location.
Think about it like this. If you sold one million dollar house in Atherton you would earn more than you would selling two averaged priced homes in San Jose.
People don’t trust jacks of all trades
They just don’t.
Think about it. Don’t you trust someone who specializes in one specific area like ROOFING for example more than a carpenter who says, “Yep, I do it all”.
Would you hire the guy who installed your windows to install your new hardwood floors?
Experience has taught us that it’s better to trust someone who spends the majority of their time and effort focusing on one area.
Real estate is very much the same.
If you spent all your time and energy focusing on a high performing market like Atherton, California eventually you will land a listing.
Then you would have a chance to earn the commission of a lifetime.
However, if you went the route of the typical real estate agent you may end up burned out and quitting the industry as you continue to chase the next sale all over town.
Now it’s over to you.
What’s your take on specialization is it better to be a jack of all trades and a master of none or do you think it’s more valuable to specialize?