Is It Better to Specialize As an Agent or Have a Broad Knowledge in the Real Estate Market?

Have you ever heard the phrase “jack of all trades, master of none?” That can be applied to the decision of whether to specialize in a particular real estate field or do a little bit of everything. Sometimes when you tell people you do it all, they automatically think “yes, but does he do everything well?” In this article we look at the pros and cons of specializing in a particular field in the world of real estate.Some of the special niches in the real estate market are: short sale expert, relocation expert and luxury property expert. Other types can include military family, vacation property and distressed property; each field of which you could become an expert in. There is kind of an aura involved in the idea of specializing in a real estate field. The biggest enticement is that most people who are selling property do want to have somebody that is an expert in their kind of property. We will look at a few pros of specializing first.The first pro is that most people have a good argument for hiring them when they can tell you they DO excel in selling your type of property. They can tell you all of their stories when selling similar properties in the past. Likewise, they are more likely to be able to get work as a result of people referring them to other people; therefore, they have a great reputation.Another pro is that this particular agent is more likely to know what is unique about your kind of property; AND is better able to convey that to prospective buyers. If there is anything tricky about the sale of your home, they know how to explain that to someone. They are also better able to tell you about any mistakes they will avoid making as a result of observing non-specialist real estate agents sell property.There are also some CONS about a real estate broker who specializes in a particular field; such as the inability to adapt when the market changes. Let’s say you specialize in selling luxury condos but now the market is changing to favor distressed condos. You may not be able to persevere if you insist on only specializing in luxury condos. Plus you and your clients could miss out on some really good deals. Continuing forward with this kind of scenario could cause you to develop a BAD reputation and ultimately put you out of business.A good rule of thumb is to avoid using the word “specialist” in your title and subsequent advertising. Instead say you “emphasize a specific sector of the real estate market.” This is far less limiting and leaves room for you to change directions when the market changes. You are much more likely to succeed for years to come doing this.