Learn the right strategies to setting up a successful geographical real estate farm for agents.
Setting up a geographical farm is generally the hardest part. The decisions you make initially could either set your farm up for great success, or drain your pockets with little to no return on your investment or time.
Why are Real Estate Farms Important?
Real estate geographical farms provide you with a constant supply of new listings, while leveraging your time thereby further growing your business. Successful farming will take some time to see the results, however you will notice the majority of the top listing agents in your market are agents who farm consistently.
Is Geographical Farming Right For You?
Successful farming requires time, faith, and of course money. Farming is not cheap, and will not produce immediate results but when done right, and consistently the results can be hugely rewarding.
Agents commonly want to farm their own neighborhood which could be easy to work as you may already be well connected, however there is also a downside. Your neighborhood may already have 2-3 solid farmers, so going against heavy competition may not be the best move.
Choosing the Right Farm For You
Geographical farming requires a major investment of time and money, so you should not choose a farm where another competitive agent is already very entrenched could set you up for failure. You should focus on an area that you are comfortable in, while also being convenient to working on a weekly basis.
Know Your Numbers
A major indicator of if a farm is right for you is the percentage of homes that have turned over in the last 2-5 years. Coach and consultant Debbie DeGrote recommends that your farm have at minimum 4.5% turnover. There are tools available that use algorithms to analyze which homeowners fit the profile of someone most likely to move in the near future, allowing you an opportunity to target them.
How Big Should Your Farm Be?
This will ultimately depend on your budget, however when starting your geographical farm we recommend a minimum of 500 homes, and no more than 900 homes. Starting too large will spread yourself too thin, and in order to systematically grow your farm consistently and effectively, starting smaller will provide the foundation that you can grow from.
Consistent Contact & Frequency
This is one of the most important parts of farming. All too often we see agents start building a farm, and make two fatal mistakes – 1. they either do not touch their farm on a weekly or monthly basis, and 2. they give up too soon. Farming requires patience and faith, and if you keep moving forward you will be well on your way to dominating your geographical farm.