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Agent Guide to Real Estate Farming

Agent Guide to Real Estate Farming
by John Carlucci - October 11, 2022

Real estate farming is a useful marketing technique that entails planting, nurturing, and developing future business-generating real estate leads. Farming is often conducted near one's residence, where one's ties to the community are stronger. Geographic (also known as geo-farming) and demographic real estate farming are the two most common forms (also called niche farming).

What Is Geographic Farming?

Geographic farming refers to the practice of focusing marketing efforts on a particular region or neighborhood. A geo-farm may encompass a whole municipality, ZIP code, or subdivision.

What Is Demographic Farming?

Population farming entails targeting a certain demographic inside your geo-farming region with your marketing activities. Targeting first-time buyers, investors, move-up purchasers, downsizing sellers, golfers, pilots, and hikers, as well as buyers and sellers within a certain price range, are all instances of niche marketing.

Always comply with the Fair Housing Act and all state and local fair housing rules when you engage in demographic farming. These rules safeguard against discrimination while renting, purchasing, or obtaining financing for housing, including discrimination based on race, color, religion, sex, handicap, and family status.

How To Pick a Farm Area In Real Estate?

The size, turnover, competitiveness, demography, and location of your agricultural region will determine its scope. Here are seven methods that can assist you in selecting a profitable agricultural region.

  1.  Select a real estate farming area close to your home

Farming in your own community has a particular edge in real estate since you are the local expert. According to a Report survey data, 74% of sellers considered a real estate agent's local or neighborhood-specific knowledge as very or extremely significant when deciding on an agent. Some advantages of farming locally include:

You are familiar with the neighborhood. You may utilize your local knowledge to provide information and answer inquiries about neighborhood restaurants, schools, and parks while interacting with consumers.

You are well-connected in the community. You've already created a feeling of trust with locals by interacting with them in public locations such as the supermarket, dentist's office, and movie theatre.

You can quickly connect with prospects. You will likely find new clients when socializing with friends, running errands, exercising, etc.

You will immediately recognize whether someone is considering selling. Your sphere of influence is inside your agricultural region, so if a friend's neighbor decides to sell, you will be the first to know.

  1.  Research the region of your real estate farm

Ensure that you are cultivating real estate leads in an area that you enjoy and that may offer you the necessary money to accomplish your real estate business plan objectives. Before committing to agricultural locations, conduct research using Google or census statistics on the following:

  • Average homeowner income
  • The average age of the populace
  • Frequently employed modes of transportation
  • Employers in the vicinity
  • Popular housing designs in the region
  • Restaurants, parks, nightlife, and schools are nearby.
  • the forthcoming building or recently built homes
  • Count of rival real estate agents
  1.  Narrow down your real estate farm area to focus on a niche

Pay close attention to hints that may assist you in identifying a specialized market while you undertake research. For instance, if there are two dog parks in the area, you may want to consider focusing your marketing efforts on pet owners.

  1. Consider the size of the real estate farming area

Size is crucial when contemplating specialty farming. Your specialty should be of sufficient size. "Top 50 PGA golfers" is not a very broad niche; you will only be able to contact 50 individuals. "People interested in purchasing golf course properties" improves your pool of possible leads.

  1.  Choose a geo-farming real estate area with set boundaries

Each area provides a distinct type of house and way of life, and according to  Report, 56% of buyers place a high value on a property's location in their desired neighborhood. You may simply sell to your target audience by leveraging the qualities of your agricultural region. Additionally, clear limits, such as communities or subdivisions, guarantee that you do not enter another agent's agricultural area.

  1.  Check for competing real estate farming agents in the area

If an experienced real estate agent is already farming your target region, it may not be possible to compete with them. Because they have a head start, you must be resourceful. Utilize what your competitors are not doing to establish your brand. Know that it may take some time to win over the residents of that neighborhood.

  1.  Compare multiple areas when farming real estate

When deciding where to begin farming real estate, consider different places to see which has the most overall appeal. Use the following methods to compute average house selling prices, turnover, and competition:

Average retail price. Calculate the average sale price for each year by pulling an MLS report of sold listings from the last two or three years.

Average commission per sale. Based on the average sale price, compute the average commission per sale. A 3% commission rate multiplied by the median home price of $462,000 would result in an average commission of $13,860 per home sale (0.03 $462,000 = $13,860).

Renewal rate. Divide the number of residences in your agricultural area by the total number of dwellings sold during the previous two years. If there are 400 residences and 50 of them have sold over the past two years, the turnover rate is 12.5% (50 400 = 0.125).

Income potential. The total number of properties sold is multiplied by the average commission. 50 properties multiplied by $13,860 over two years is $693,000.

Then, you may make a table displaying your top three real estate farming regions, evaluate your selections, and select the optimal neighborhood.

Top Real Estate Farming Techniques

Being knowledgeable about agricultural procedures might generate more leads in the farming industry. Here are three strategies that can assist you in dominating the market:

  • Create and adhere to a real estate marketing plan.
  • With a basket of local items, be the first to welcome new residents to the community.
  • Be the first to view a house when it is placed on the market by being informed of its debut.

12 Real Estate Farming Strategies To Optimize Your Exposure

To build yourself and your brand, you'll need to interact consistently with others. Here are 11 real estate farming strategies to maximize your exposure:

  1.  Knock on doors in your farming real estate area

Door knocking is a free method of promoting yourself in your real estate farm's neighborhood. If you're not a local or are new to the region, this is the ideal approach to meet potential customers in person. Leave them with a distinctive business card or informative booklet, so they may contact you when the time is right.

  1.  Leave informational door hangers in your real estate farming market

If the homeowner is absent or you do not feel comfortable knocking, leave a door hanger with information about your upcoming real estate activities. Include your website address and phone number on the hanger.

  1.  Send real estate farming information via direct mail

Possessing the proper equipment is vital to understanding how to farm an area in real estate. They may contain newsletters, postcards, flyers, market reports, just-listed, and just-sold alerts, as well as other materials. Numerous sales professionals recommend sending out real estate farming information on a monthly basis; you may anticipate consistent outcomes after one year of doing so.

Sharing your region-specific expertise helps demonstrate that you are an authority in real estate. Include your website, phone number, and email address, as well as an appropriate call to action.

  1.  Collect emails with automated real estate farming postcards

Utilize an automated direct mail provider to send monthly customized postcards. An excellent strategy is to link people to a market report that needs them to provide their email addresses before seeing it. This allows you to follow up with your new lead to determine whether they are interested in connecting.

  1.  Email homeowners to farm for real estate leads

Once prospects have submitted their contact information via postcards, open houses, or your website, you may send them email newsletters and market updates. The majority of consumers prefer digital communications, which reduces the expense of direct mail. In your email signature, be sure to include links to your website and social media sites.

  1.  Sponsor a sports team or program in your real estate farm area

Sponsoring a Little League team boosts your community's standing and visibility. Do not restrict sponsorship to team events only. Consider sponsoring items such as:

  • Community activities
  • School food drives Fundraising

Check with your CPA to see whether sponsorships are tax-deductible. If you want assistance with financing, try forming a partnership with a lender. Co-marketing with a lender (including their contact information for your agricultural materials) is a fantastic method to cut costs.

  1.  Host local events or free meetups for FSBO sellers

Share your real estate knowledge with the community by organizing a free seminar on how to sell a house or determine its worth. According to a Report, 36% of millennials and 26% of Generation Xers attempt to sell their homes on their own, but many get overwhelmed by the process. Hosting an event or meeting is an effective real estate agent prospecting method since it promotes you as an authority in the region. Include your email address, phone number, and website so possible prospects may contact you.

  1. Participate in local online real estate forums

The majority of communities have a forum, Facebook group, or message board. Establish credibility by participating in the conversation and establishing yourself as a community member and real estate agent. You can sometimes provide a listing or market update to maintain your name linked with local real estate.

  1.  Share your real estate farming area’s growth on social

Social media channels such as Facebook, Twitter, and Instagram are ideal for distributing graphs, maps, and even memes depicting the neighborhood's growth or evolution through the years. Remember to provide your demographic with pertinent information in their chosen manner. The replies and reactions of your followers will inform your communication approach.

  1.  Create a blog on the top tourist attractions in your agricultural region.

In blog entries, highlight the best restaurants, entertainment places, and parks in your real estate farming region. Share these blog pieces on your website and social media. Blogging about new or fascinating locations is a terrific method to encourage readers to share your content, so increasing your exposure to possible prospects.

  1.  Create a Facebook ad

Target particular ZIP codes, hobbies, and even categories such as "ready to relocate" using Facebook advertising. When targeting demographics, remember to understand and comply with the Fair Housing Act and any state and local fair housing regulations.

Here is a quick guide to buying land

Author

  • John Carlucci

    John has worked alongside Real Estate Giants across USA and Canada for decades. Since he started Prudentialcal, he has been actively rendering service as business adviser to many companies in the real estate industry. He formed Prudentialcal in hopes of providing the most reliable stories and information there is in the vast industry of real estate

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