Real estate farming involves making your presence known in a particular area. You choose a neighborhood and send regular postcards and fliers. You may target the area with Every Door Direct Mail, or go door-knocking there. You may drive through the neighborhood looking for FSBO signs and give them a call.
In short, you’re building your brand and your business in a particular geographic location. But how do you choose the right geographic area? Most real estate agents operate in cities with many, many available options. Here’s how to narrow it down.
Is it Close to Where You Live?
You may not want to farm a neighborhood next door to your own home, but you probably also don’t want to drive two hours to do an afternoon of door-to-door visiting. Finding someplace close enough that you are motivated to spend time there is essential.
You won’t be a successful agent in a neighborhood you never want to visit. Find a farm area that’s within a comfortable distance from where you already live.
Does Another Agent Already Dominate the Neighborhood?
Every neighborhood will have some kind of competition, but if there is another Realtor® who already dominates that market, you probably want to find a different area. Check the MLS and see who has sold the homes in that area in the last year. If 80% of them are the same agent, you’ve found a successful farm. It just isn’t your successful farm.
If someone already seems to own a neighborhood, you’ll spend a lot of time and money going head-to-head with them. Instead, move into an area with a less clear go-to agent.
Is There Enough Activity at a Good Price Point?
For once, Zillow can work for you. Check the market conditions in the neighborhoods you are considering. How many homes are currently listed? What are they listed for? How many have sold in the last year, and at what price point?
There may be regions near you that have beautiful homes that you could sell for an excellent price, except that no one ever moves in or out of the area. Make sure you understand the volume of home sales, the prices, and the time on the market.
Do You LIKE the Neighborhood?
A friend made me laugh one day when she said, “If you hate your target market, you’re probably in the wrong business.” So, think about the area and who lives there. Are the residents folks you can relate to? Are they the type of people and homes you would enjoy working with?
If you hate working with first-time home sellers and buyers, you want to avoid an entry-level neighborhood. If elderly clients drive you crazy, keep that in mind when choosing a farm area. Every Realtor® has these types of preferences, even if you don’t ever voice them. Be sure to choose a farm you’ll be excited to go into.
When you select a farm, you’re making a long-term commitment. Do the research to make sure you’re happy with your choice. After you pick a neighborhood, make a marketing plan. It should include getting to know people, attending community events in that area, sending farming postcards, and more.
Are you ready to make your farming and marketing more consistent? We’re here to help. Check out our large selection of farming postcards today!