If you want to be successful at real estate farming, it’s critical that you pick the right farm area. When you invest your time and money in marketing for your real estate business, it’s important to make sure you’re putting that investment in the right place.
How do you get started choosing the right area for your geographic farming? The answer is research, research and more research. You need to pick an area that has the right demographics, price points and turnover rates to reach your goals. Here are some tips to get started.
Make Sure Your Farm Has Enough Turnover
A well-established neighborhood with few people moving in and out isn’t a good farm. Look at the turnover in potential farm areas over the last two or three years. Find a farm where the turnover is at least 4.5 percent. You may be able to use analytics to specify the top 20 percent of homeowners who are most likely to move to target your farming efforts at that group.
Pick the Right Price Range
If you can find a farm that is in the upper end of the price range you’re comfortable with, you could increase your per-listing profit. But, it’s important to farm an area you know well and will be comfortable targeting.
You don’t need to pick a farm close to your office, but it’s always a good idea. You’ll save travel time to work the farm, and it may be easier for homeowners to think of you as a local expert.
Should You Farm Your Own Neighborhood?
Whether or not to farm your own neighborhood is a personal preference. Some agents find that since they’re connected to the community, farming is easier. In addition, homeowners may be a bit friendlier since you’re a neighbor.
You’ll probably never find a great farm without competition from other agents. But, it’s important to know about the competition before you make a final selection. If you’re competing with a well-established agent, be sure to determine if they have weak areas where you can do better. For example, they may not market consistently, or they may have a large number of expired listings.
Take the time to do the research and learn all about an area. Don’t try to farm in an area that you’re not familiar with — homeowners will spot that right away. You need to choose a farm that will have a very positive impact on your future business. Explore tips from experts like Debbie De Grote and other contributors to hone your geographic farming skills. Download our FREE e-book, “Geographic Farming in the Digital Age.”