Before the Internet, real estate agent often specialized in one type of real estate property. However, with the advent of online marketing, real estate agents need to be up-to-date and knowledgeable about many different property types on the market so they can show to their clients.
At first, starting out as a real estate agent can be intimidating with so many different niches. New brokers should aim to market their services towards more than one niche. Some agents even publicize in markets aimed at Millennials or Baby Boomers to widen their market.
If you’re going to school or just beginning your career as a real estate agent, there are three popular types of real estate property you should invest your knowledge in:
The most obvious type of real estate to sell, new and experienced agents work with residential properties. However, as a real estate agent you can specialize in certain types of homes including houses, apartments, townhomes, or condos. If you specialize in a couple different types of housing, you could do fairly well in terms of personal income. You may even choose to advertise within a certain niche. Some real estate agents like to work solely within the luxury real estate niche while others prefer to work with affordable or more inexpensive housing units. In either case, you should choose the make that interests you the most.
Early 2017 is a great time to buy a home because mortgage rates are still relatively low. If you’re a newly-minted real estate agent, remember to keep your eye on mortgage rates so you can help your clients understand when is the best time to purchase.
Interested in within commercial real estate? It may prove to be a smart move. Commercial real estate includes vacant land intended for commercial use or an existing commercial building(s).
Commercial valuation is more complicated than residential valuation. In this case, you need to take into account the income value of the property, its historic revenue/significance, cash flow, and many more details.
There are many factors that go into commercial real estate valuation. It’s best to start out with residential real estate first and then work your way up to commercial real estate that includes multi-family and apartment units within commercial buildings because lenders, buyers, and sellers use different valuation methods for these types of construction. If you want to start off with a good source of income, specialize in sub-niches like malls or shopping centers.
3. Vacant Land
Vacant properties usually have large sizes and price tags. Oftentimes, there are corresponding commissions attached with the property. In up and coming areas, vacant properties can be lucrative for agents. As the area become more populated, you will likely have to travel further from you base. In some areas, vacant lots have higher commission percentages, but it’s becoming less frequent in the real estate community because land is more expensive. Some agents like selling vacant land better because it is much simpler since there are no floor plans, insurance issues, or structure inspections to oversee.
If you’re interested in vacant land, you could specialize in farm or ranch properties.
Becoming a real estate is an exciting prospect. As you navigate the diverse market, remember to connect with your audience through community blogging and building an online presence. In doing so, you’ll become more familiar with your market and connected with your clients. Good luck on your journey as a real estate agent!