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 US specialty board was established in 1917, and today, there are dozens, of specializations and so called super-specializations. Super specialists operate within a very narrow field of medicine generally, already within a 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.
Is this trend crossing over to the real estate industry? The answer is yes! In the 2003 National Association of Realtors® member profile report, the study found that 20 percent of Realtors® hold a designation, and of those that hold designations, they on average make $32,000 a year more than their counter parts who have not invested in higher education. Many of these agents are specialists.
As a specialist in any niche of the market, a real estate professional must offer special, unique value to their clients. Agents that label themselves a specialist without any formal advanced training, run the risk of putting their clients in jeopardy, and violating their fiduciary duties. On the other hand, agents who use their specialization to help their clients may find, they are chosen more often over their competition. Why? Let's take a look:
Four Key Reasons Consumers Choose a Specialist:
- The Knowledge Base
Specialists by definition, possess specialized information about their field that will benefit their clients. As more information becomes available, it is the specialist's job to stay abreast of the most timely, accurate data available to protect their client's interests.
An agent's ability to know their market, and product, is one of the most important deciding factors in the choosing of a real estate professional, according to the most recent findings in the 2004 Profile of Home Buyers and Sellers (19 percent of sellers, and 24 percent for buyers).
- Experience and Reputation
What is the number one reason, why a client chooses a real estate agent? According to the latest survey of buyers and sellers in the nation, the agent's reputation (54 percent) is the deciding factor in most seller clients' minds. Reputation also ranked first in buyers minds as well (42 percent).
Why do you choose a professional service provider? In many cases, the reason points back to the experience and reputation of the firm, or person with whom you are dealing. Cultivating the reputation of professionalism is critical to the success of any real estate specialist. Testimonials can be powerful tool in any market, and a terrific way to show your excellent reputation!
- Referrals
Perhaps the most powerful reason for a consumer to choose a specialist is a personal referral. The number one way that both buyers and sellers come into contact with their agent, is through the use of a personal referral -- 44 percent of buyers, and 38 percent of sellers. Cultivating key relationships is a crucial aspect to building a referral based business.
- Value-Added Services
Home buyers and sellers today, expect the best. They also expect specialized services tailored to their needs. This is a powerful motivator when deciding which agent to represent them in a real estate transaction.
Consider the explosive growth of Starbucks coffee as an example of this conspicuous consumption mindset. Starbucks understands that the key to managing their customers experience has little to do with the price of the coffee, and everything to do with the managing of the customer experience. They do this by building value in other ways, by creating value points. One question to ask yourself is this: What value points do I offer to my customers and clients?
It's obvious that today's sophisticated buyers and sellers expect more from their real estate professionals than ever before. To meet this new standard, it may be wise to explore the various specializations, and, yes, super-specializations available within the real estate market. A great place to start, is to review the list of councils, and organizations that are now offering specialized education across the country.
