Farming a Geographic Area Works, Researchers Find
Researchers say its not clear exactly why local knowledge translates to faster sales for higher prices, but they suspect a neighborhood expert becomes proficient at pricing and marketing in a given neighborhood.
(Boonton, NJ, October 1, 2013) — For decades, the conventional wisdom in real estate has urged geographic specialization. Agents should concentrate on a few neighborhoods or subdivisions and farm them, the theory goes.
The conventional wisdom is correct, conclude three university professors who compared homes sold by agents who were neighborhood experts to homes sold by agents who only dabbled in an area.
Houses that are inside an agents geographic cluster sell appreciably faster and for a higher price, says Raymond Brastow of Longwood University in Virginia. Geographic specialization really does benefit the consumer.
A full report on the research appears in the October issue of Real Estate Broker's Insider.
About Real Estate Brokers Insider
Real Estate Broker's Insider provides residential real estate agency broker/owners with actionable news and information on managing their businesses for greater profitability.