Want to know how not to pick a farm as a real estate agent? As with most flawed agent tactics, it’s the lazy approach to choosing a geographic farm.
It starts with the assumption that your own neighborhood is the ideal farm. But if the numbers aren’t there, you’re more likely to go broke farming just outside your front door.
Unfortunately, the community you live in isn’t always the best farm. You would think that if you live in the community, that would be the best place to start. But numbers are what you need to make an informed decision as to which farm to pick for your marketing efforts.
Gated Communities vs. Non-gated Communities
If you’re living in a community or you want a farm, here are a few things to consider when deciding between gated and non-gated communities.
With gated communities, the advantage is you can do more mailers. The disadvantage is you’re not allowed to knock on doors. A lot of communities have rules and regulations for solicitations. You can’t drop off gifts. You can’t put flags up.
So, choosing a non-gated community would have a benefit: you can put in more sweat equity instead of check equity. Check equity is going to cost you more money in things like mailing fees and printing fees, whereas sweat equity involves an investment of time and effort.
Always look for the absorption rate— you want to choose an area with at least a 5% absorption rate. You need to see a turnover, so the money you’re putting into the farming will actually yield a return on your investment.
Invest in Standing Out (from the Competition)
Identify the dominant agent in the area (if there is one). Make sure no other agent—or agents—have already taken a firm hold of that area or you’re going to have a lot of competition.
That said, you’re likely to find at least one agent who’s active in that community. So, engage in activities that will make you stand out above the rest:
- Email marketing
- Hosting community events
- Community service
- Garage sales
- Food trucks
You can also start a Facebook group in the community. Make yourself an approachable community resource and leader— rather than just another real estate agent who asked them, “Want to know what your home is worth?”
What you want to communicate goes far beyond “I’m here to sell your house.” You want to demonstrate to the people in your farm, “I am the best agent in the business.”
The average agent wants to put a mailer in the mail, maybe knock on some doors, and wait for people to come to them. Do the things they’re not doing to stand out.
Once you’ve chosen the best farm for you, going above and beyond for the people in that community will give your best shot at seeing significant returns on your investment.
