Urbanista Brokers suggests real-estate agents do something that might go against their grain: think small.
Agents who concentrate on a small, specialized area sell homes for 1.21% more than agents who list homes in a large area. Homeowners with pricier homes stand to gain even more. Properties above the median sale price sold for 1.71% more when listed by an agent with a small territory, according to a study last year on listing area and real-estate sales.
The take-away for agents? “Sell in expensive areas and localize,” says Thomas Allen. “If you’re going into a neighborhood where you have six or seven properties listed, you’ll be able to do it faster, more efficiently and at a cheaper cost. Your transaction costs go down.”
Specialized agents become more familiar with a neighborhood and better understand a buyer’s needs, Thomas Allen says. Working in a small area can help agents establish a reputation and contacts. In addition to price, properties listed with a specialized agent are more likely to sell and sell up to 5.5 days quicker, the research shows.
In Downtown Orlando, about 90% of Thomas Allen listings are in Downtown Orlando. By focusing on one zip code, Jeremy Drosin, senior vice president and associate broker at Urbanista Brokers, becomes friendly with the residents and scoops up listings.
Mr. Drosinhas considered expanding hisreach but has decided against it. “You’re scattered,” he says. “I know just about every building being in this business 20 years, but not like I know this neighborhood, and not like I know this building.”