I hve recently been researching the changes Google (and the other search engines) are making to local search. The SEs have been hammering away at local search for a few years now. Their objective is to essentially put the old paper-based Yellow Pages out of business - to become the default "go to" source for local business information.
So that makes Local Search very important for businesses targeting a local market. Real estate agents are obviously one of the most important business segments who should be up to speed on local business search.
Google's local business search strategy is based on Google Maps. When you think of it, this is probably Google's most important potential revenue source for Google Maps. As GMaps based local search becomes more dominant, it will become an important source of ad revenue.
If you use Google Maps to do a search you are using their local search system. For example, I did a search for "Waterloo Realtors" from Google.com (not the toolbar), and this is what I got:

Notice that the sponsored (paid) links are at the very top. But right under those are the "local business results". This is what we're talking about here. Google has elevated the importance of local search results so that, for location based searches, they come up ahead of the normal results we are used to.
The bottom line is that if you want to score well for location based searches you have to get into the local search game.
There is some helpful information at the link below describing how to get started...
Getting Listed in Google Local Business Center
Aha! So that's how my Montreal staging competitor got her business up there on the Google search results page! Thanks for the info, Rick. I will be pursuing this, though I can't get what I assume to be a video working on your link. (For me, videos rarely come up on ActiveRain too.) Any idea why? Many thanks for all the great info. -- Tanya in Montreal
Very helpful Rick! Thanks for the post!
Dave: Very informative. Thanks for posting it!
Hi Tanya, Glad it was helpful.
Re the video: Maybe you need a more up-to-date version of the Flash player. You might try going to the Adobe site and see if upgrading (in your browser) is recommended.
Here is the link to the video I think you are referring to:
http://www.youtube.com/watch?v=QXth5HIQYeY
Rick
Thank Rick our team has been working on elevating ourselves up the google ladder. I will talk to my business partner to see if we are the correct steps.
Hi Dave,
You're welcome. I hope to have further information about this topic available soon.
Rick
Hi Maria,
You're welcome. Thanks for commenting.
Rick
Hi Mandy,
You're welcome,
I will be testing local search for myself and a few clients, and will add new posts on this topic as I have something useful to say.
Rick
Very helpful info, thanks.
Rick, thanks for much for posting this blog. I just found out I'm not in Google's local search for my area, but I will be within 24 hours!