Local market knowledge is the key for real estate agent success in 2025 and beyond 📊

It used to be that people primarily worked with Realtors to get access to the MLS to find what properties are for sale.

In 2001, 55% of people found their home directly through a Realtor according to NAR (graphic below).

Fast forward to 2024 and that number is down to 29% and most people find the property they want to purchase online (likely independent of their agent).

These days, buyers and sellers have more access to information than ever before.

Real estate agents must go beyond basic services, like access to the MLS, to provide real value. 

Buyers and sellers want real estate professionals who can give them unique insights through market expertise. 

Real estate agents who understand local market trends, pricing strategies, and how to use data to inform the process are positioning themselves as indispensable resources, making them the top choice for today's consumers.

Clients want real estate agents with market expertise 🙋‍♂️

A real estate agent’s market knowledge is one of the top factors influencing a buyer or seller’s decision when choosing representation and finding satisfaction. 

According to Zillow’s Consumer Housing Trends Report, roughly 75% of buyers and sellers rate it very or extremely valuable that their agent have local market and/or neighborhood-specific knowledge:

Zillow doesn't ask buyers or sellers why they want this, but we can easily guess some of the ways local market knowledge allows agents to succeed:

• 🏡 Listing Pricing Strategy: Understanding neighborhood trends helps agents price homes correctly from the start, preventing overpriced listings from sitting too long and underpriced homes from leaving money on the table.

• 🚸 Neighborhood & Community Insights: Clients want insights beyond what online listings provide, such as school districts, future developments, and economic conditions that may impact property values in the future.

• 👩‍💼 Competitive Edge in Negotiations: An agent who understands local inventory levels, seasonal market shifts, and buyer demand patterns can provide better negotiation strategies to help clients win in competitive environments.

Today's buyers and sellers aren’t just looking for someone to process paperwork; they need a strategic advisor who understands the market inside and out.

💡 Finding opportunity: Ways to use data in your real estate business

If you want to improve your real estate business and advice you provide to clients, you'll want to incorporate data into it all.

Before you get started, the first thing to recognize is that this is a process, not an on/off switch.

Like anything worthwhile, it will take time and you'll need to be patient.

Call me a nerd, but I think it's pretty awesome to realize that you can start using data/market stats in any of the major phases of your business:

1: Initial Consideration: generate leads 👫

The most common question anyone will ask you when they find out you're in real estate is "how's the market?" Pros understand this is a golden opportunity to demonstrate their value and share an interesting insight to pique interest.

Further, regularly communicating market changes can highlight opportunities to prospective buyers and sellers that would otherwise be missed.

2: Active Evaluation: help clients get context and manage expectations during consultations 🤔

When, what, and for how much are some of the most important questions you'll answer for a buyer and seller. 

Mismanage expectations or fail to properly explain your rationale and you can start off on the wrong foot when getting started with a new client. 

The use of market stats in this process helps to ease nerves and objectively provide direction.

3: Moment of Purchase: guide your people to make confident decisions when taking action 👍

When buyers write their offer, they'll almost always want to pay less than the seller is asking. But how much less is appropriate?

And can you justify to the seller why you picked that number with data or did you just pick it out of the air?

4: Active Evaluation (again): keep everything going the right direction when under contract ⏩

We all know that once your clients are under contract, the job isn't finished.

You've got to keep the ship going the right direction and using data can be an excellent way to keep emotions out of it and focus on the big picture when people get cold feet or run into challenges.

5: Post-Purchase Experience: continue adding value to your clients after the closing 🤝

Finally, a huge area of opportunity for all Realtors is to stay connected to the people they've already served and have a relationship with.

The hard part can be having a reason to connect outside of "do you know anyone else who's looking to buy, sell, or invest..." 🤦‍♂️

Sending market regular market updates gives you a reason to reach out and are almost always welcome as they provide value.

Next steps to get started 🚀

Let me say this: you've got this. 💪

Start small and pick one area of your business to start using data with. What you focus on expands.

And if you're in Northeast Florida and want more help, my Market Insiders coaching membership could be the solution.

It's designed to provide you with local market insights you can use right away along with how to bake them into your business. 

✅ I'll have 15 slots opening February 10th at 8AM and you just need to add your name to the waitlist to get the link to join then.

Here's to your future success and more data-driven decisions! 🚀

Dr. Alex Stewart
Founder