Aliso Viejo, CA December 5, 2008  Are there any advantages to specializing in a certain area of the real estate market, or is it better to be a general practitioner? This is a question that certainly faced another professional organization a few years back - doctors. Over the past several decades specialization has been the growing trend in medical schools across the country. The first U.S. specialty board was established in 1917 and today there are dozens of specializations and so called super specializations.  Super specialists operate with a very narrow field of medicine generally within an already defined niche. Why?

 

·          They can focus their attention on a highly specialized area.

·          They can invest in training and education within their niche.

·          They can quickly diagnose and help their patients.

·          They can increase the odds of success with their knowledge. 

 

In the business world the technique of identifying a particular target group and aiming your business directly at them is known as narrow casting or point casting. It’s the process of picking a particular market and aiming your time, energy and effort at developing that market as your specialization - your niche.

 

In his book Lateral Marketing author Philip Kotler takes the concept one step further by encouraging business owners to avoid tackling already occupied market segments in favor of creating newly perceived positions within the market. He explains “Vertical marketing is the process of slicing up existing markets.  In contrast lateral marketing means that you focus on one area of the market that is either not occupied, or at least not owned by a competitor.”

 

What about the luxury home market?

 

Even with so many opportunities within the luxury home market many agents question whether specializing in a certain area of the real estate market is a wise decision.  Yet, according to the Luxury Home Council - Membership Survey of Luxury Housing Trends – agents who earned the Accredited Luxury Home Specialist (ALHS) designation had an average closed sales volume of just over $7 million dollars or nearly three times the sales volume of a typical real estate agent in the United States.  It is a viable market niche that is attracting more, dedicated high end agents – even in today’s tough market.

 

Is it a niche for you? Legendary business consultant and author Peter Drucker identified key questions to ponder: 

 

1.       What business are you really in?

2.       What are your core competencies? What do you best – better than anyone else?

3.       Where do you see your business in one, five, ten or even twenty years?

4.       If prospects don’t list or buy a luxury home through you who will they most likely turn to and why?

5.       Are you committed to step in and take on the competition?

High Net Worth Individuals (HNWI) are highly educated, self made millionaires. By and large they are new money households who have high expectations and will demand to work with market leaders. Because of this luxury home specialists understand that to serve leaders they must themselves be leaders – just like a specialist in any other real estate niche:

 

·          Be a leader 100% of the time

·          Show up and be focused

·          Set goals and execute around priorities

·          Control your emotions  

·          Create and follow systems

·          Change rapidly when needed

·          Surround yourself with leaders

 

To learn more about the luxury home niche and how to become a market specialist the Accredited Luxury Home Specialist (ALHS) course from the Seller Agency Council is a good place to begin.  To learn more about this online course just visit http://www.realtyuonline.com/alhscourse/splash_page.htm