After becoming a real estate agent, you might want to specialize. There are many different real estate niches to consider. Some pay far better than others, however.
Real estate agents can make a very nice annual income if they choose the right niche. Of course, you will also need to have the right skills as an agent to become successful.
If you’re considering specializing, it’s a good idea to know which real estate niches pay the most. Here’s a look at the top options to consider.
Top 10 Real Estate Niches for Higher Commissions
1. Luxury Properties
One of the most lucrative options, if not the most lucrative, is the luxury niche. Luxury homes sell for a much higher price, which means, higher commissions.
Homes above $1 million are on the rise, too. According to the National Association of REALTORS, luxury homes for sale surged to more than 240% in May 2021.
You can even become a Certified Luxury Home Marketing Specialist. With this certification, you will have the knowledge you need and the credentials to specialize in the luxury market.
Working with investors can be very lucrative. Real estate investors buy and sell properties regularly. While the commissions on each transaction may not be as high as other niches, you will likely have more transactions per year.
It’s also common for real estate agents working with investors to get into property management. The combination of the two can help ensure you have regular income coming in from rental properties you manage.
3. Use Social Media
This unique real estate niche takes some getting used to, but it can be very lucrative. You won’t be selling perfect, turnkey homes, but you will always have a steady flow of listings.
With the right connections and knowledge, a real estate agent can make a very nice living in this niche.
4. Single-Family Foreclosures
While it’s not the most glamorous of real estate niches, single-family homes can be incredibly lucrative. This is the most common type of property you will find and there are plenty of single-family homes that go on the market every year.
5. Vacation Properties
If you’re working in an area where people vacation often, you can do very well with vacation properties. These properties can be purchased to be used as a second home or as a vacation rental. Many retirees own multiple properties, along with others looking to vacation to the same area regularly.
6. First-Time Home Buyers
Another real estate niche that isn’t super glamorous, but can be very lucrative is working with first-time home buyers. If you take on first-time buyers and you help them find the right home, they will come back to you in the future.
This niche will take patience and you will need to understand the programs for these buyers. However, the referrals you can gain and the lifetime clients you can get might just make your future real estate career far easier.
7. Up-and-Coming Neigborhoods
A real estate niche doesn’t have to just be based on the type of home, buyer, or seller. You can specialize in a specific type of neighborhood, too.
Up-and-Coming neighborhoods can be very lucrative. If you can learn how to analyze the planning and zoning information for counties near you, it can lead you to the right neighborhood. When you discover an area that is about to become very popular, it can lead to lots of ongoing business.
8. Architectural Styles
Maybe you love a specific type of home style and you want to specialize in that specific type. You can choose your real estate niche based on architectural style, too. Some of the most common include:
- Historic homes
- Midcentury Modern
Any architectural style can be a niche, however.
9. Specific Types of Buyers or Sellers
Another way to choose your niche is to look at the type of buyer or the type of seller. You can specialize in many different areas, such as newlyweds, empty-nesters, military families, or young professionals.
10. Ranches and Farms
Another lucrative real estate niche to consider is ranches and farms. This type of niche will require you to understand how to work with buyers and sellers looking for more than just a home in a neighborhood. A ranch or farm will come with land and may come with equipment, animals, or additional buildings.
How to Pick Your Real Estate Niche
When it’s time to choose your real estate niche, it’s usually a mistake to choose based solely on money. Specializing means you will be working with a specific type of client, property, or in a specific type of neighborhood. You want to make sure you choose something you will enjoy.
Many niches offer certifications to help you learn more and gain the credentials you need. When you become certified, you can help clients in your specific niche much better.
While choosing one of the most profitable real estate niches above might lead to a higher income, it might not be the right choice for you. Not all agents have the patience to work with first-time buyers or the skills to market a luxury property. Finding the niche that suits you best will lead you to the most profitable real estate niche for you.