Choosing the right geographical area is one of the most important decisions an agent can make, particularly when starting out or moving into a new market.
When you first enter real estate sales, or you're changing markets, it's critical to focus on a geographical area with enough transaction volume to support the business you want to build. Too many agents choose a patch based on convenience, familiarity or the belief that they simply need to dominate one small area. I always come back to one principle: "You must create a game you can win." Ambition is important, but the numbers still need to work. If the market itself doesn't provide enough opportunity, effort alone won't solve the problem.
Take a simple example. If there are only one hundred sales in your chosen market each year and your goal is to complete eighty transactions, you would need to achieve an 80 per cent market share. As I often say, "That is virtually impossible." There are only a handful of agents across the country operating at that level of market dominance. Setting a goal without understanding the volume available can leave an agent chasing a result that the market simply cannot support, regardless of how disciplined or skilled they are.
This is why I encourage agents to study the numbers before committing to a core area. Look at annual transaction volume, average sale price, competition and the realistic market share required to achieve your income and sales goals. An area with hundreds, or even thousands, of annual transactions gives you far more room to build. If you can create a strong business with a 20 to 30 per cent market share, rather than needing 80 per cent just to hit your targets, you've designed a far more achievable model.
The lesson is simple. Don't choose a market and then try to force your goals into it. Start with the business you want to create and work backwards. Understand how many sales you need, what realistic market share looks like and whether your chosen area has enough volume to support those numbers. The best agents don't just work hard within a market. They make sure they've chosen a market where their hard work has the capacity to produce the result they're aiming for.
When you first enter real estate sales, or you're changing markets, it's critical to focus on a geographical area with enough transaction volume to support the business you want to build. Too many agents choose a patch based on convenience, familiarity or the belief that they simply need to dominate one small area. I always come back to one principle: "You must create a game you can win." Ambition is important, but the numbers still need to work. If the market itself doesn't provide enough opportunity, effort alone won't solve the problem.
Take a simple example. If there are only one hundred sales in your chosen market each year and your goal is to complete eighty transactions, you would need to achieve an 80 per cent market share. As I often say, "That is virtually impossible." There are only a handful of agents across the country operating at that level of market dominance. Setting a goal without understanding the volume available can leave an agent chasing a result that the market simply cannot support, regardless of how disciplined or skilled they are.
This is why I encourage agents to study the numbers before committing to a core area. Look at annual transaction volume, average sale price, competition and the realistic market share required to achieve your income and sales goals. An area with hundreds, or even thousands, of annual transactions gives you far more room to build. If you can create a strong business with a 20 to 30 per cent market share, rather than needing 80 per cent just to hit your targets, you've designed a far more achievable model.
The lesson is simple. Don't choose a market and then try to force your goals into it. Start with the business you want to create and work backwards. Understand how many sales you need, what realistic market share looks like and whether your chosen area has enough volume to support those numbers. The best agents don't just work hard within a market. They make sure they've chosen a market where their hard work has the capacity to produce the result they're aiming for.
