“The riches are in the niches,” or at least that’s what most marketers will tell you. No matter how you pronounce the word “niches,” there’s no doubt that one of the easiest steps to finding real estate buyers for your investing properties comes down to understanding the power of niche marketing.
The reason niche marketing is so powerful when it comes to finding buyers is that identifiable niches help sharpen your marketing and help your communications stand out in a crowded marketplace. Most people are looking for solutions uniquely tailored for them, and that speak to their needs in a customized manner. Finding cash buyers for real estate is often about creating a “market-to-message” match that’s congruent and relevant.
The trick we investors have is one of focus: Which niches will help us build that all-important real estate buyers list? And how do we ensure our niche marketing doesn’t feel too generic as we embark on our quest to build a buyers list?
Here are four ways to utilize niche marketing to increase your chances of finding real estate buyers and positively affect your bottom line.
Boost Your Chances Of Finding Real Estate Buyers
Probably the most commonly-used form for niche marketing, from a real estate investor perspective, is that of segmenting buyers by location. One of the biggest mistakes investors make is to lump all buyers from one town or city into one large group.
But as most people know, even within the smallest of town or city, there are key differences between areas — in terms of price, inventory and vibe — and understanding how to market to these different areas (and the buyers who prefer them) can go a long way toward making your marketing more effective and cheaper.
So, what kinds of different location niches should you focus on? Key ones include:
- County/Town/City: Though niching down, based on location, is just the first step, it’s an important first step. Be sure to distinguish county from town, as they often have very different living experiences.
- Neighborhoods: Urban districts or suburban communities? Try to break whatever town or city into identifiable neighborhoods that buyers will understand.
- Streets: We all know not every single street in a neighborhood is created equal. Breaking your marketing out by street not only shows would-be buyers you’re laser-focused but also creditable.
2. Property type
Not everybody is looking for the same kind of property. As an investor it’s important you realize there are many different types of real estate out there, not just single-family detached homes. The savvy redeveloper knows by earmarking their marketing toward particular property types they’ll enjoy a much-stronger rapport with their buyer list.
This means having marketing materials that distinguish between the many property types which include:
- Single-family detached home: By far the most popular property type. Focus your marketing toward young families and kid-friendly activities, and include material about schools and neighborhood safety.
- Condos and co-ops: This is mostly for that urban dweller in your database, so your marketing in this area should focus on night-life and transportation.
- Luxury properties: Though the number of sales in this sector tend to be low, the profits tend to be high. That’s why it’s worth tailoring your marketing toward the 1% who can afford these purchases, and want to see additional above-the-line benefits and features beyond the usual.
3. Buyer Type
One of the easiest and most effective ways to organize your leads is by buyer type. This may require research on your part, to understand the desires and needs of each particular niche. But if you’re able to do that — creating customer avatars is a perfect way to do this — then you’ll be able to use language and emotional buzzwords that make your marketing stand out.
Some of the key buyer types to think about include:
- First-time buyers: One of the most cautious, yet impressionable, buyer groups available. Your marketing toward this niche should focus on education and reinforcing the benefits of home ownership.
- Wholesale buyers: Got a ton of wholesale inventory you’re looking to off-load? Create a dedicated sub-buyer list that caters to fellow investors looking for a new property.
- Relocation buyers: Whether it’s reaching out to international buyers or folks simply moving cross-country for a new job, this niche has a ton of side considerations — that have little to do with actually buying a house. By adding things like moving guides or resource lists you might carve out a following with this type of buyer.
- HUD/military buyers: Many buying groups have access to government-subsidized financing. By understanding how that process works, and making it easy for the buyer to understand what’s involved, you can become a valuable resource to a whole, new slew of buyer archetypes.
4. Age Group
This might be the most overlooked (and under-utilized) form of niche marketing for most investors. Which is a shame, since adjusting your marketing based on the age of the buyer can be a powerful way to establish rapport and convert more of your leads.
Though demographic age distinctions can be overly-simplistic, here are three key age groups to gear your niche marketing around:
- Millennials: This demographic group isn’t just the biggest slice of the homebuying pie, they also represent a huge potential long-term source of revenue. Features such as sustainability and energy-efficiency are important to this group, and don’t forget that having an expansive digital footprint is key to reaching Millennials where they are, not just where you want them to be.
- Generation X: Success in marketing to Gen X buyers comes down to understanding where they are currently. Are they first-time homebuyers who’ve been renting for years and are ready to take the property plunge? Or are they looking to upgrade to a bigger house to accommodate the kids? Focusing on fiscal benefits, and tax savings, is a great way to reach this group raised on grunge.
- Baby boomers: Marketing to Baby Boomers is about understanding the two compelling motivations for this group: comfort and financial security. Whether they’re looking to down-size into something more affordable and manageable, or want a location closer to the grand kids, this demographic sector is as interested in what happens after they buy a property, than what happens during the buying process.
Fishing where the fish are
There are many benefits to finding real estate buyers with niche marketing. Perhaps the biggest of all is how you can create marketing messages that make buyers feel like you understand what it’s like to “walk in their shoes.” And if it’s true, as the old axiom says, that we “do business with people we trust” then niche marketing might be the quickest (and most effective) way to cut through the clutter and lay the groundwork for a fruitful, trustworthy relationship with property buyers.