Agent Essentials

Real Estate Agent Blog

 Finding Your Niche: Alabama’s Vacation Housing Market
January 17, 2022

Finding Your Niche: Alabama’s Vacation Housing Market

by The CE Shop Team

Alabama’s Vacation Home Market Is Growing

Entering a new year always feels like a much-needed fresh start, and finding a new niche market to enter can rejuvenate your career while expanding your real estate business.

For example, vacation or secondary homes provide a great niche market for new and experienced real estate agents alike. Vacation home sales skyrocketed during the COVID-19 pandemic, increasing by 16% year-over-year in 2020 according to a report from the National Association of REALTORS®

“One near-certain aspect of the post-pandemic economy, when it comes, is the flexible work schedule,” Lawrence Yun, NAR’s Chief Economist, told The Escape Home. “It is very hard to envision five days a week in the office. Therefore, vacation home sales will continue to move higher, this year, next year, and for the foreseeable future.”

In Alabama, this trend has held strong as the state’s vacation home market boomed this past year, particularly in small towns and rural areas. 

Alabama’s Vacation Home Market 

Median Price Per Home Map

The Heart of Dixie has been ranked as one of the top vacation home markets in 2021, thanks to its affordability and low property taxes. 

Where Do People Pay the Most in Property Taxes?

Alabama is home to some of the country’s top lake-home destinations and coastal retreats in the Gulf Shores, and interest in these markets has risen significantly in recent years. 

As Americans seek an escape from their homes and remote work continues to provide more flexibility than ever before, vacation home sales are projected to continue rising over the next few years. If you’re interested in entering this niche market, check out these tips for getting started.

Earn Your Real Estate License in Alabama

If you're already licensed in Alabama, great! But if you're not, you'll need to hold a real estate license in the state to conduct real estate business here. Some of your education may apply, but there are state-specific requirements and information you’ll need to meet.

Alabama’s real estate license reciprocity status is full, meaning that the state will allow you to transfer your real estate license from any state in the country upon the completion of the state-specific portion of the real estate exam for Alabama. If you have any questions on real estate license reciprocity, check out our comprehensive guide here. If you're interested in having a custom education package built to support your multi-state business needs, please reach out to our Customer Support team.

Pick a Vacation Market You Know (or Are Willing to Learn!)

Location, location, location remains a tried-and-true principle within the real estate industry, and in a niche market like vacation homes, it’s more crucial than ever before. Alabama offers a variety of locations for vacation homes, so be sure to define the market you wish to enter. There’s no shame in starting with one market, seeing how it’s working, and expanding to other markets down the road, but don’t feel like you need to conquer all of Alabama in one fell swoop. To help you narrow your search and kick off your new niche, here are the top vacation home markets in Alabama:

  • Dauphin Island’s median home value: $410,745
  • Gulf Shores’ median home value: $358,237
  • Guntersville’s median home value: $213,519
  • Fairhope’s- median home value: $395,828

Vacation Home Market to Watch Alabama

Dial-In Your Marketing Strategy

Once you’ve figured out which vacation home market you want to enter, honing your marketing strategy will help to spread awareness of your business and can help buyers find their ultimate vacation paradise.

The best way to build your marketing strategy is to know your audience and what kind of vacation home they desire. Are they luxury homeowners adding another property to their portfolio? Do they want to find a vacation home in a touristy area like the Gulf Shores that they can rent out throughout the year? Or do they simply want a paradise retreat near Guntersville that will allow them to disconnect and relax?

Knowing what your audience is looking for in a vacation home will help you determine the best way to market your services, which will allow you to spend your time and money in the channels that will generate the most leads for your business. Instead of trying every lead generation tool, focus on four prospecting pillars based on your audience and location: 

1. Referrals - This source of leads should be a permanent part of your business that can feed you leads primarily by word of mouth.
2. Paid leads - Paying for leads doesn’t have to be costly and can turn into referrals over time, making the price per lead even less expensive. 
3. Open houses - Hosting an open house whether in person or virtually, is a great way to increase your listing’s visibility, and offers an opportunity for agents to answer questions.
4. Probates - Alabama’s probate process is simple. If there is a written will that names the heir to the property, it’s a done deal. However, in the case there is no will and no heirs to claim the property, then there are companies that sell listings of real estate in probate. You can also check county records to find these properties since they’re open to the public. 

Once you’ve established these pillars in your business, focus on identifying who your audience is and how you can market to them.

  • For the buyer who wants to earn extra money by renting out their vacation home, consider securing a billboard near an airport or another highly-trafficked part of town. 
  • For the buyer looking to disconnect and relax, try online ads or targeted social media ads aimed at those searching for smaller coastal or lakeside retreats. 
  • The best way to market to luxury buyers is to get connected within the market and network with other luxury real estate agents. You could get creative and place business cards or brochures at wealthy hot spots in town such as a country club, highly-rated restaurant, or high-end car dealership. 

Stay Connected and Keep Your Clients Informed

It’s more than likely your clients will not live in the market in which you’re showing them listings, making it all the more important for you to keep them informed about what’s happening with home prices and local news that might impact the market. Adding a CRM into your arsenal of tools is a great way to keep your clients organized so you can better connect with them over time. Exchange contact information, enter it (along with any relevant notes) into your CRM, and assure your clients that you will connect with them regularly. 

To that end, consider how you can stay top-of-mind as they daydream about their vacation home. Perhaps you could start a newsletter that keeps clients up to date on local news and market shifts. Texting is also a great way to stay connected without bothering a client with calls and voicemails. Sending links to listings or even a quick text to check in and gauge interest is an effective way to stay connected with clients. Just remember to balance being present with being annoying; no one likes to be bothered day-in and day-out. Establish communication expectations with each client, note their preferences in your CRM, and then reach out as agreed upon. 

Beyond sending a text, calling, or emailing, being available is the key to keeping clients and eventually making a sale. The life of a real estate agent can extend beyond typical business hours. As industry veterans know, client questions can pop up at all hours of the day. 

Be prepared to answer questions at any time to show them your commitment and market insight, and your clients will be singing “Sweet Home Alabama” in no time.  

Ready to Build Your Southern Empire With Real Estate Courses From The CE Shop?

Enroll in our Pre-Licensing program now to get your career started and begin connecting your neighbors with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything real estate-related in the South? Join the Southern Real Estate Facebook Group!