This will be the first of many posts on target marketing your real estate business.  Let’s start by identifying why a niche is important, what questions you should be asking yourself and how you can complete the corresponding research.

When the topic of target marketing comes up, most will agree it sounds like a great idea.  But I have a hunch that many real estate agents will not go the extra steps required.  Now obviously once you’ve identified a niche, you’ll still except business from other sources-especially given the current economic and housing turmoil.  But rather it will enable you to optimize your marketing efforts and bring a consistent message for a particular age group or lifestyle type.

Ask yourself who’s the perfect customer? Is it a first-time buyer or seasoned homeowner looking to buy their next home? Do you cater to young families? As you identify these demographics, look at your market to see if there’s a fit. Does your local market have more of a particular type of client? Does your skill set have more to offer a particular type of buyers or seller?

Researching Your Local Market Segments

Using the “Maps” section of Cyberhomes.com you can segment your local market.  For example, start by selecting “Maps” from the search dropdown, then enter the zip code you think generates most of your business.  Now on the Maps page, look to the left-hand side and you’ll see various demographic and market groupings.  Segment your market area by age group, lifestyle, type of neighbor or neighborhood characteristics.  As you review the maps, look for high concentrations of your target customer. Zoom in and out as needed; also click on any area to see the actual percentages. Repeat as needed for each market area.

Coming up next, we will uncover strategies for researching your closest competitors.