If you are looking to build and maintain a successful real estate business, you will need to master the skill of geographical farming. Using this strategy successfully will allow you to build your brand awareness and centralize large portions of your real estate listings and sales in a specific area.
Success will depend on your ability to be patient and diligently work in a specific region or area. To get started with real estate farming, there are some basic methods you should follow to get the best ROI on your efforts. Use these five tips to get started the right way:
1. Choose The Right Location
The best location for geographical farming is an area you are familiar with, such as the area you live in. It can be doubly productive to pick a place that you would like to live in. Whichever location you choose to start in, there must be at least a 6% turnover rate.
Start with 250-500 homes, depending on the marketing budget that you have available. You can expand to larger numbers as the area becomes saturated, and you are satisfied with your brand awareness and return on investment.
Online tools such as Offrs can assist in selecting your target area. Offrs calculates the total number of properties, turnover rate, and geographical location, which makes it easier than ever to fight the right territory for you. Furthermore, they implement predictive analytics and their proprietary algorithm to determine who is most likely to sell their home within the next 12 months.
Check out some basics stats of the areas you are considering working in using the Offrs Marketing Planner. This software allows you to input your zip code and your desired gross commission income (GCI) for the year. Hit search and boom.
All of the major key stats you need to know about your area are there, such as average home value, expect total listings, market share, difficulty rate, and competition. This information about your area can give you a realistic overview of your area, and can ultimately help determine if you can win that area as an agent (and did I mention it's totally free).
Take a look at what the Offrs Marketing Planner outputted for Sarasota, FL zip 3423 with the desired GCI of 100,000 below.
A chart generated by Offrs Marketing Planner showing stats of inputted zip code 34236.
2. Create An Expense Plan For Real Estate Farming
You will have to set your budget and decide exactly how much you can dedicate to this new marketing endeavor. This may play a part in how many homes you choose to target initially because ideally, you will want to make sure that you have contact with each house at least twice a month.
To calculate your return on investment for your farming efforts, you will need to consider costs for your marketing (such as online ads, mailers, emails, etc.). Consider this against your expected return through new business. This should give you a good idea of how much you will want to invest in your geographical farming budget for the year to come.
The Offrs Marketing Planner we mentioned earlier can also help with outputting a general idea of cost per month for your campaigns. And it is all centralized around your personal zip and your goal GCI.
A chart generated by Offrs Mareting Planner showing the estimated amount of effort and budget needed to generate the desired results for their real estate marketing campaign.
3. Commit To Your Strategy
Farming is a long-term strategy, and you have to play the long game. This means you have to stay committed and consistent with all of your marketing techniques. It would be best if you consistently make contact with your chosen location. When the phone rings, you have to be able to answer the call.
Make sure that you are the expert when it comes to the market and the homes on the market in your particular area. Stay current on the values in your area and the issues that can affect them. Automating your marketing is another great way to keep your messaging consistent.
4. Stay Connected
A great reason to choose a farming location where you live or work is because you know the people there. It is essential to make friends with the people in your geographical farm.
A great way to do this is with not only varied forms of communication but personal communication. A crucial part of all business is meeting new faces and remembering names. People remember people who remember them.
Spend time in your farm and get to know the people there. Attending, hosting, or sponsoring events in your chosen location is an excellent investment to make!
5. Boost Your Success
Some simple tricks will help you boost your success even more quickly with your farming efforts. Know the homes in your farm. Use every opportunity available to get to know the homes in your area inside and out.
Remember, knowledge is power. Get to know new homeowners. Develop relationships early on, and you will earn their trust and business almost every time.
Overall, our number one piece of advice is: Stick to your plan. Inconsistent effort produces inconsistent results. If you want a healthy return on your investment in real estate farming, you need to follow through on your marketing efforts and stay on top of all the information you can get.
By committing to this cause and focusing your efforts, you can maximize your success in geographical real estate farming. This not only helps bring a notable return but helps to grow your brand and advance your career and success within the real estate industry.