If the idea of expanding your real estate business has crossed your mind recently, you may be juggling questions of when, where, why and how that expansion should happen.

 

The answers involve soul searching, research, prioritizing and goal-setting.

 

First things first: Are you ready?

 

 

Agents and brokers who already operate a strong, high-efficiency business model in their primary market will more easily be able to replicate and tailor their business to a new market. This is true whether the new markets are in a different geographical area or a new category of the primary market.

 

While exploring the idea of expansion and researching which market(s) to pursue, it’s important to continually evaluate your existing business. The agent or team whose existing business operates with well-established systems and processes is more likely to succeed at expanding into new markets. 

 

The legacy business must continue to maintain and build up on the reputation and the high level of service it is known for.

 

Having strong systems, processes and staff in place will ensure that clients, partners and team members continue to thrive while you explore new market potential. These include:

 

• A well-defined brand and brand awareness in your primary market

• Trusted staff and consultants, including a trusted personal and/or administrative assistant; transaction coordinator(s); listing coordinator(s); and marketing, staging and home repair professionals

• Relationships and experience collaborating with real estate agencies, partners, lenders, builders and buyers in target expansion markets

• Systems for: Marketing automation; lead generation; integrated digital advertising, email marketing; client communication; website development; professional photography and videography; staging; social media; partner and referral relations 

 

Next: Which expansion market makes the most sense for you to chase? New markets can be either geographical or categorical. Some may be both.

Start with the logical markets for you.

 

 

Geographical Markets

 

Do you have family members and friends who live in or are moving to another part of the state? Perhaps you own a vacation home in another state where you plan to retire in five, 10 or 20 years. Or it might be that your sellers are moving to new cities or states that intrigue you.

 

New geographical markets may include:

 

• ZIP codes and counties that surround your existing footprint

• Additional states

• Becoming a referral agent to other geographical or categorical markets

 

It might be time to nurture relationships with agencies in these new geographical areas. Some states reciprocate with California licensees. Starting in those states can be a good way to test the idea of geographical expansion.

 

In others states, earning your license and joining a specific MLS in affiliation with a brokerage may be the most logical move.

 

 

Categorial Markets

 

Alternatively, have you recently invested in flipping homes or purchasing rental properties? Or perhaps your adult children are giving you a new perspective on first-time home buyers and you want to work with listings that first-time buyers can afford.

 

Some new categorial markets may include:

 

• Buyer/seller price points (luxury, first-time buyers, etc.)

• Investors (residential or commercial)

• New-construction sales and referrals (builders)

• Commercial sales or property management

• Relocation transactions (corporate or luxury markets)

• Specialized buyer types (55+, VA, USDA, FHA, etc.)

Follow this blog for upcoming posts detailing steps to take to build a successful business in additional markets.