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Before specialising in a suburb, price point or property type, make sure the numbers support the business you are trying to build.
One of the most common questions I am asked is whether an agent should create a niche. Should you specialise in a particular suburb, focus on a certain price bracket or position yourself around a specific property type? It is a fair question, and in many cases specialisation can be a powerful strategy. The mistake agents make is choosing emotionally rather than strategically.
Before committing to any niche, you need to ensure you are picking a game you can realistically win. That starts with analysing the volume available within the marketplace you are considering. If you decide to focus on an area with 3000 homes, the first question is straightforward: how many transactions actually occur there each year?
If that suburb produces 300 sales annually, then you are working with a defined opportunity pool. From there, the numbers become clearer. If your goal is to achieve 50% market share, that equates to 150 sales per year. Even at 25% market share, you are looking at 75 transactions annually. That level of clarity is essential before structuring your business around a niche.
The same thinking applies if you choose to specialise in a price range or a specific property type. The formula does not change. You need to understand how much volume exists and what a realistic share of that volume looks like for your level of experience, brand presence and capacity. Without this analysis, agents risk selecting a niche that sounds attractive but cannot sustain the business model they are trying to build.
Market share is measurable, not theoretical. In tightly defined markets where an agent has operated for a long period and built strong relationships, it is possible to see 70% or even 80% market share. That outcome is the result of consistency, positioning and discipline over time, not luck.
What often happens is that agents pick an area because they like it, or because it feels prestigious, without assessing whether the transaction numbers align with their goals. A suburb with low turnover might seem appealing, but if only a small number of properties transact each year, the ceiling on your growth becomes obvious very quickly.
This is where strategic thinking becomes important. Real estate sales coaching frequently reinforces the need to work backwards from your income target and determine how many transactions are required to achieve it. Once you know that number, you can evaluate whether your chosen marketplace provides enough opportunity.
Choosing a niche can be highly effective, but only if the volume supports it. When the marketplace has sufficient turnover and you build meaningful market share, your business becomes more predictable and scalable. You can structure your prospecting, marketing and staffing around real data rather than assumptions.
The objective is not simply to specialise. It is to specialise in a segment where the numbers make sense. When you align volume, market share and your own capacity, you create a business model that is sustainable and capable of long term growth.
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