While 70 percent of Realtors compete for the same residential listings, you could be the only agent in your market who truly understands the emotional complexities of the niche you serve, America Foy writes.
I reentered residential real estate around Year 8. My early career was in commercial and institutional real estate and also included the Great Recession and learning about my first niche: short-sale listings.
I became a Certified Distressed Property Agent (CDPE) and learned how to “do” short-sale listings; that’s all there were at the time. I got my first listing, and eight months later, the sale was successful. That first $3,000 commission wasn’t just a check; it was a lesson.
Hard lessons
The short-sale nightmare taught me a brutal but valuable lesson: When the entire market is collapsing, the only survivors are those who understand a specific, complicated problem better than anyone else.
While other agents were drowning in conventional deals that wouldn’t close, my short-sale listings, with their labyrinthine lender approvals and endless paperwork, were closing. I wasn’t smarter; I was just specialized. I had become the “go-to” for a transaction everyone else feared, and that tiny, terrified niche kept my business alive.
So niche
That experience framed my entire approach. A niche isn’t just a marketing tactic; it’s a strategy. While 70 percent of Realtors compete for residential listings, you could be the only agent in your market who truly understands the emotional complexities of divorce real estate, the legal nuances of probate, or the specific financing hurdles for VA buyers.
These aren’t smaller markets — they’re territories where your expertise, not your ad spend, wins the business. A client navigating a divorce doesn’t want a generic agent; they need a specialist who can coordinate with attorneys and manage high-stakes emotions.
For example, I once helped an executor manage a probate sale where family disputes threatened to derail the process; my familiarity with appraisal practices, court deadlines and family dynamics was what the attorney needed. The deal went smoothly because we immediately ordered a probate appraisal that managed family expectations and helped to avoid costly delays.
New frontiers
Let’s be clear: every lasting niche is born from financial stress. My short-sale expertise wasn’t a strategic choice — it was survival. I was hungry, and those were the only clients walking through the door.
That desperation becomes your graduate program in real estate. You stop being picky and start being a problem-solver for people that everyone else has turned away. The probate cases, the divorce settlements, the VA buyers with complex financing — they all share one thing: a transaction that’s too messy or complicated for agents who can afford to be choosy.
My niche market picks for 2026
The August 2024 NAR settlement created a niche cornucopia; the overwhelmingly negative consequences have created problems everywhere, and problems = niche.
Parenthetically, there has been one positive consequence from the settlement: the end of the tire kicker.
My top picks for niche markets in 2026 are FHA 203(k) buyers, veteran buyers and — believe it or not — first-time homebuyers.
Yes, first-time buyers.
They weren’t supposed to be a niche. They were the mainstream, the backbone of the housing market. The NAR settlement requiring buyers to pay their agents, high interest rates, lack of affordable homes and economic factors have turned first-time buyers into specialized niches.
First‑time buyers now account for just 21 percent of primary‑residence home purchases, according to NAR’s 2025 Profile of Home Buyers and Sellers — a new record low since the association began tracking the data in 1981 and a steep drop from roughly 40 percent before 2008. These numbers underscore how affordability and inventory constraints have pushed many would‑be new owners to the sidelines.
If there are about 4.1 million existing homes and you apply the current 21 percent first‑time buyer share, you’re looking at roughly 860,000 first‑time buyers a year — about 0.6 first‑time buyers for every one of the nearly 1.5 million Realtors in the country.
My quiet mentor (the person in my office who didn’t know she was my mentor, Anian Tunney) told me once that “real estate is a war of attrition” and to just keep showing up because it’s your job now. Part of that job when we’re new is working with the clients that comfortable agents pass up.
Don’t underestimate the small commissions — they build the foundation for a sustainable career and teach you the problem-solving skills that lead to bigger wins. My advice to you: “$3,000 is $3,000.”
The bottom line
Real estate is a difficult and confusing and chaotic job. Most of us are not on TV chasing the biggest listings or the flashiest deals. It’s about finding where your expertise matters most and owning that space.
Today’s market rewards patience, specialization and a willingness to solve problems others avoid. The $3,000 commissions — once seen as small — are the building blocks of lasting success. Embrace your niche, show up consistently, and watch how the clients who need you most become the clients who sustain you.
