What does 'market segmentation' refer to in real estate?

Market segmentation in real estate refers to the division of a market into distinct groups of potential buyers who have different needs, preferences, or characteristics. This process allows real estate professionals to target their marketing efforts more effectively by understanding the specific desires and requirements of each group.

For instance, buyers might be segmented by demographics such as age, income level, family structure, or geographic location. By identifying these various segments, agents can tailor their marketing strategies to meet the specific needs of each group, ensuring a more efficient use of resources and enhancing the likelihood of successful transactions.

The other options do not reflect the concept of market segmentation accurately. Raising property values, determining selling prices, or employing broader marketing strategies does not inherently involve the analysis or categorization of different buyer groups, which is the essence of market segmentation. This focus on differentiating the target audience is crucial for effective real estate marketing and sales strategies.