The Pros and Cons of Specialization in a Real Estate Career

by Scott Levitt at :www.freehelpforrealestateagents.com

The Pros and Cons of Specialization
Are you marketing yourself as a specialist?

Sometimes when you say “I do it all,” people hear, “I do none of it well.” You might be a real Renaissance woman (or man) when it comes to real estate, but often creating and maintaining an edge in your market depends upon some degree of specialization. How often have you seen the following attached to other agents’ signatures?
Distressed Property Expert
Luxury Condo Expert
Military Family Expert
Short Sale Expert
Relocation Expert
Vacation Property Expert
There is a certain allure to specialization– after all, if you’re thinking of selling your $2.5 million high-rise condo in San Francisco, wouldn’t you feel a little more confident hiring an agent who has moved thirty comparable units in the past six months?
Specialization has its pros and cons, of course. Some pros and cons include:
Pros:
Specialization makes a good story in listing presentations. (“I’ve spent the past five years helping people negotiate tricky short sales.”)
Specialization makes word-of-mouth easier for like-minded referrals (“Oh, our agent Jim specializes in corporate relocations.”)
Specialization is useful when specializing really provides an advantage (Think: What is tricky or unique about your specialization? What mistakes do non-specialists make that you won’t make?)
Cons:
Specialization can put you at risk of missing out on deals (i.e. a distressed property expert has a hard time landing luxury condo sellers)
Specializing “behind the curve” can put you at a disadvantage when market changes (i.e. it can be tough to be in moving big family homes when your market is flooded with empty nesters)
To specialize, you must truly specialize– i.e. you have to practice what you preach and have a good track record within your specialty. You can’t talk the talk without walking the walk.
Sometimes “specialist” is too strong a label, especially when you’re getting your footing in a particular segment you think might be a future specialty.
One alternative to “expert” or “specialist” is an “emphasis” on a particular sector. Emphasis is much less limiting and is good language to keep your doors open on your way to specialization.
For example:
Specialist: “Barbara specializes in the marketing and sale of mountain properties (both land and homes).”
Using emphasis to soften the term “specialist”: “Barbara has helped over 200 families across North Carolina sell their homes, with an emphasis on marketing mountain properties.”
You can also use “emphasis” to make a specialization more… well, specialized. For example:
“Mary specializes in empty nesters looking to downsize, with an emphasis on baby boomers who anticipate home accessibility issues.”
In Mary’s example, not only is she attuned to the needs of people downsizing, but she also understands that many of these buyers are conscious of future health issues around mobility and accessibility.
Specialization can increase demand for your services and differentiate you from your colleagues, but be careful about how you market yourself and your talents when it comes to specializing. Look at your track record and see if you find patterns. Do you have enough expertise? Should you specialize just because you can?
For long-term sustainability, don’t just slap on a specialty as a marketing tagline… think carefully first.