Neighborhood Expert vs Area Expert. Which is dominant?

Posted by Greg Eckler on Wednesday, August 17th, 2016 at 7:31pm.

I wanted to see how each Denver neighborhood broke down in agent transactions. Do a few agents have most of the sales or are the sales spread out over multiple agents?

As defined below, there are two types of agents: ones that focus and ones that diversify. Is one better? I think that will depend on the client and the situation. Is one more common? Let’s see from the data below.

Neighborhood Expert  There is value to being a neighborhood expert—to knowing a lot about one specific area and all the ins and outs of the neighborhood (i.e., schools, restaurants, home prices, trending, home types, events, etc.)
==>  On average, only 13% of agents perform two or more transactions in a single neighborhood. (YTD 2016)

Area Expert  Having a good general background about a lot of neighborhoods allows an agent to compare. This would help a buyer to understand various neighborhood options and help sellers understand the competition in the area.
==>  On average, 87% of transactions done in any specific neighborhood are performed by an agent that only has one transaction in that area.

The Reality. Most agents aren’t in one single category—they know some neighborhoods better than others and can help buyers and sellers in a wide array of neighborhoods.

The Data. The following chart breaks down the percentage of homes sold in each Denver neighborhood that are done by agents performing a single transaction in that neighborhood. [Note: I refer to “sides.” In a typical home sale, there is a buyer side and a seller side so 1 sale = 2 sides.]

1 Response to "Neighborhood Expert vs Area Expert. Which is dominant?"

McGuire wrote: Really great article Greg! Nice to see it backed up with the data.

Posted on Friday, February 17th, 2017 at 1:25pm.

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