About Walworth County, WI

http://www.virginia.edu/uvatoday/newsRelease.php?id=7838

Released today was a great overview on foreclosures. The analysis shows that most of the home foreclosures have been concentrated in California, Florida, Nevada, Arizona and a small portion of metro areas in other states. Most notable was the quote that '66% of potential housing value losses in 2008 and subsequent years may be in California, with another 21 percent in Florida, Nevada and Arizona. for a total of 87 percent of national declines.

DO lick on the link for the full article and the impact of the Obama proposed foreclosure prevention program. Even more important is that potential homebuyers who are qualified should BUY NOW and lock into a 30 year fixed rate mortgage. WHY? Becuase there is talk that at the back end of this fallout we will face steep inflation. Locking in to a long-term rate will fix some of your living costs as a consumer. In periods of high inflation, rents, interests, and other costs only go up,up and up. Mortgage rates are low, inventory is good and housing is well priced.

In my post, "Are you Cutting off your Niche to Spite your Marketplace?" I wrote about why real estate professionals should choose a niche. In listening to the readership community of this blog I heard a need for clarification of the infamous 3 W's and H. My marketing mind is ready to serve so here we go.

Breaking Down Niche Economics: How, What, Where, and When

HOW?

Get back to basics. Study and research your market area. You need to understand what your marketplace is doing- What is selling? What's not? Who makes up your marketplace?

I recommend that you read and print this post by Myrtle Beach Real Estate agent Mirela Monte, "How Well Do You Know Your Market". It is a timeless post that captures the essence of what homework you should be doing everyday in order to understand your market.

Mirela wrote this post in October 2008 so you can adjust the time frames accordingly and put it to use, daily, weekly, monthly and quarterly.

Once you understand your market you will be able to analyze its trends and find your niche.

WHAT?

You've done your homework and research but are unsure if what you've determined could qualify as a niche. You might just be surprised at what a niche can be---take a look at these niche markets,

1. Fixer uppers
2. Lakeside property
3. Pet owners
4. Green living/Ecobroker
5. Neighborhood expert
6. School District expert
   
7. Vacant land/acreage
8. First time home buyers
9. Seasonal visitors
10. Equestrian property
11. Resort/vacation homes
12. Seniors
13. Luxury Homes
14. Condo buyers/sellers
15. FSBO's
16. Expireds
17. Short Sales- which can be subdivided into families, divorcees, young singles, investors, move-up families, home finding services and road to recovery services for short sale homeowners
    
18. REO's
19. New Construction
20. Relocation....which can be subdivided into International, Domestic, Young Urban Professionals
21. Families.....which can be subdivided into families with young children, families with teenagers, families with college children, families with elderly parents living with them, single parents
    
22. Empty Nesters
23. Investors...which can be subdivided into condos, single family homes, commercial,
    
24. Nudists
25. Military Families....which can be subdivided into army, navy, coast guard....which can also be subdivided into rentals, temporary housing, homebuying/selling, property management
26. Minorities- Asians, African Americans, Hispanics
27. Car Enthusiasts
28. Gay and Lesbian Community
29. Universities/alumnists
30. Houseboats
31. Oceanfront
32. Rental Assistance
33. Farms/Acreage
34. Timeshares
35. Mobile Homes
36. Historical Properties
37. Bed and Breakfasts
38. Property Management
39. Business Opportunities
40. Celebrities
41. Actors
42. Musicians
43. Sports Professionals
44. Service professionals- i.e. doctors/lawyers
    

How can you tell if the niche you have chosen is truly the golden nugget of your local real estate market? Ask yourself a few questions once you have decided on your metallic endeavor,

1. DEMAND-Is there a need for this niche?
2. PASSION- Do you have a desire to serve this niche?
3. FINANCIAL OPPORTUNITY- Can you make enough money from serving this niche?
4. SUPPLY (over/under)- Is this market currently flooded with service providers or are you an early adopter?
5. EXPENSE- Can you cost effectively market and sell to this niche?

Bingo...You hit the jackpot: If you answered yes to all 5 it's time to do some planning.

Answer Key

• If you answered yes to all but #1 you need to go back to your market research and studies because you missed something in your initial analysis if you answered no to this question.
• If you answered yes to all but #2 go back to the drawing board because if you don't like what you are doing you won't be attaining the quality of life you desire.
• If you answered yes to all but #3, maybe you need to supplement your income by adding another niche.
• If your answer to #4 is that your market is flooded you will need to differentiate in your service offering to have any chance of being effective.
• If you answered yes to all but #5 you will need to supplement your business with another source of income, either a part-time job or another niche, while you are building your first niche out.

WHERE?

Back to the basics again. You need to devise a strategic marketing plan. If you don't get help in constructing this then I'll give you a few DIY pointers:

1. Where does your niche go offline?
2. Where does your niche go online?
3. What businesses does your niche buy products and services from...where are they...how do you get in front of them?

Make a list, make a plan, and follow through.

WHEN?

If you are committed to running a business the time is now. If you enjoy throwing spaghetti against the wall to see if anything will stick, the time is never. Investing in a niche today is investing in money today, tomorrow and building for an exit strategy in the future. If you decide today to make that investment I say to you....

The biggest hurdle I see in the real estate marketplace today is the fear for real estate agents to commit to a niche market. A niche market can provide your business with a brand, a distinguished service offering, and a means to an exit strategy. The benefits are plentiful yet the perceived risks tend to haunt industry professionals.

A niche marketer picks up traffic from an underserved and needy marketplace-you know the economic fundamentals of supply and demand. Ready, willing, and able customers aren't hiding under rocks they are scouring the net and asking for referrals from their Sphere of Influence. The question is will you be top of mind?

If you are marketing yourself effectively as a niche you can bet you will be.

Are you still afraid to let go of those old and tired apron strings? You know, the ones that you were tied to when you first came into the business and you were trained to take everything just to make ends meet? The taste in the mouth of your unsuspecting clients might end up being bittersweet.

This weekend I was contacted online by a home buyer who is having a problem with his new construction real estate contract. The real estate agent who he is working with does not have the experience he needs with new construction homes yet he is already signed, sealed, and delivered on his offer to purchase and is running into some significant issues that need resolution. Now he is working through the grapevine of his real estate agent's friends to get the expertise he needs.

If you oversell yourself as a generalist you do yourself and your customer a disservice.

In a less robust economy YOU can and SHOULD turn to a niche market. Remember you want customers, not the looky-loos. You can FIND a niche in any size community and let's be honest, normally you will service more than one town.

Keep your general market knowledge in your back pocket but move beyond the undergrad philosophy. Step into a niche and become the master of your field. If you are still concerned about lack of business by making this move,

• Take on a minor to increase your opportunity.
• Include your knowledge on general areas of real estate and when prospects come to you make a referral.
• Expand and branch out by growing a team full of niche experts.

If you keep your mind open your advantage will become clear and understood.

Niche markets change. If the rate of homeowners delinquent on their payments in your area is 1 of 4, then short sales are not a niche but rather a general study that you need.

Don't get left twisting in the wind. First step out of the industry to get your mind freed up to think more clearly...see how the other half lives,

Freelance writer niche markets- Writing for the golden goose.

Why Niche Marketing is important online- The true anatomy of longtail success.

7 Steps to small business success- Look at Number 1 "Start Smart".

Do yourself a favor today and don't wait 60-90-120 days. Carpe Diem. The time is now to think about a niche. Do you want to stay a generalist to "keep food on the table today"?

Are you cutting off your niche to spite your marketplace?

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Niche Economics is a passion of Real Skillz marketing consulting. Call #262-203-5231 or email rebecca@realestateskillz.com to get your niche in tip top real estate marketing shape.

No matter what I try to reframe, I work in the resort community of Lake Geneva, Wisconsin. It is hard to get Buyers into the community to look at property when it is snowing and February. I keep thinking 'tell me it isn't so' but it is. Now, there are some folks back looking and it is either under 200K or over 4million. (No, not all my customers!) But I am tired of waiting to have people walk into the office....yes I advertise, but you know what I mean. So, I decided to bring the show into the Chicago area which is about 40-50 miles outside Lake Geneva. Our Buyers are all from the Chicago marketplace. I am holding an Open House at the Hampton Inn and Suites on Old Orchard Road in Skokie on February 26th, from 1-8 p.m. 'Lake Geneva Real Estate on the Road' I am ready to answer questions, print information, hand out listing information and be available to my Buyers, potential Buyers and my current clients with second homes. Social networking is about the discussion so tell me what you think or better yet send customers! I do work with referrals. And even better what you are doing to think outside the box. Thanks!