Have you tried geographic farming before but didn’t get any listings or sales? Or, do you farm a neighborhood now but aren’t happy with the results? You’re not alone. Geographic farming can be challenging and frustrating. But, when done right, geographic farming can also be a predictable and profitable way to generate tons of business.
Here are the five keys to dominating a geographic farm.
Key #1 – Turnover
One of the biggest reasons agents fail with geographic farming is they choose the wrong neighborhood. You want to select a neighborhood based primarily on its turnover rate, not on its home values or location.
You calculate turnover by dividing the total number of homes in the neighborhood by the number of sales in the previous 12 months. For example, if there are 500 homes in the community and 50 of them sold in the last year, the turnover rate is 10%.
An ideal geographic farm will have at least 200 homes and a minimum of 8% turnover.
Key #2 – Competition
Neighborhoods fall into one of three categories:
- Dominated by no one
- Dominated by a single agent
- Dominated by two or three agents
If the sales in a neighborhood are spread across many agents, there is an opportunity for you to step in and dominate by becoming the community specialist. If a single agent dominates the neighborhood, you have the opportunity to position yourself as the alternative (people like to have options). You want to avoid neighborhoods with two or three dominate agents because they are the most difficult communities to establish a presence.
Key #3 – Multiple Marketing Approaches
The best way to market to a farm is using multiple approaches. The following approaches are the most effective:
- Door knocking
- Sending direct mail pieces
- Holding open houses
- Running social media ads using geo-targeting
- Sponsoring or hosting community events
- Publishing a neighborhood report/blog
Start with two or three and then build in more approaches over time.
Key #4 – Offers
No matter how you market to your selected farm, you want to include offers. Offers are the incentives you give people to contact you. Examples are free CMAs, neighborhood reports, and coupon books to local restaurants.
Marketing without making offers is branding. Branding is an expensive and time-consuming way to generate business.
Key #5 – Consistency
Most agents who fail with geographic farming either give up too soon or fail to market consistently. You want to give any geographic farming campaign at least six months. And, you want to market to the neighborhood at least 2 -3 times per month using one or more of the approaches from key #3.
P.S. – Geographic farming scares some agents away because they assume it’s expensive. But, you can run social media ads, door knock, and write a neighborhood blog all for under $100 per month.