Farming in real estate is a general term that we swear by. I hear this over and over: “Find an area, and farm it.”
But how do you do go about finding that farm location? What are the things you need to be looking for to ensure that an area is a great revenue locale?
I chose luxury, and I have been doing extensive research to pick the specific area of luxury I want to farm. In addition to geographic considerations, I also had to determine the right price point.
It’s crucial that you concentrate your farming on high-growth regions. By focusing your efforts there and becoming the expert in that particular farm, you will increase your listing potential. It starts with one sign at a time. Doing this “homework” will also help with your marketing strategy when you start to get listings in that area.
So, let me help you figure out how to pick your farming area. Consider these elements:
1. Days on market
Pick the stretch that has the least amount of days on the market. This is where the high-growth factor comes in. That’s the space I want to concentrate my marketing on — my farm.
2. Farm growth rate
Determine how many people stay in that area compared to the amount of people selling. What is the turnover? What portion of the residents have lived there five years or longer?
3. Building rate
What is the building rate in that farm area? How many building permits were pulled?
4. Community growth
Maybe you pull a county-wide building permit rate and see that there’s a new community in the works. If it’s in an area you want to farm, get in that space right away.
5. Competition
What are the other agents doing in your farm area? Do something different or better to stand out.
Now that you’ve found your farm area:
- Become visible
- Be consistent and professional
- Pick your marketing platform: ads, direct mail, email blasts, paid target marketing, key terms, signage, sales calls, social media, etc. — consistency is key
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How has farming worked for you? Please feel free to share about your farming trials in the comments section below.
Melinda Goodwin is Luxury Home Division Director with Engel & Volkers St. George, Utah. Follow her on Twitter or Facebook.