Find, Analyze and Dominate a Real Estate Farm
Market dominance usually starts small: Identify a geographical farm area with strong sales, one where no agent dominates the market. Then become that person.
NEW YORK – One way to expand a real estate business is to set up a geographical farm and become its dominant agent.
When identifying the ideal farm area, consider its strength – a strong rotation of homes sold, a number of homes consistent with your available time and budget, and the absence of an existing dominant agent. As a rule of thumb, a dominant agent is any person who has listed 20% or more of an area’s homes in the past 12 months.
For marketing, it’s reasonable to spend $2 per home per month, which can cover monthly direct mail pieces, special events and just listed/just sold cards. If a neighborhood has 200 homes, an agent can then expect to spend about $4,800 per year for farming expenses ($2 x 200 homes per month x 12 months).
Agents who opt to farm their own home’s neighborhood can request the homeowners association’s contact list.
Agents also should develop a communications calendar based on one mailing per homeowner each month. They should plan special events for the farm area, such as movie nights, and try to be visible by participating in activities, such as walking or riding a bike.
Agents should also attend as many neighborhood or area events as possible and stay consistent. “The Seven Times Factor” principle states that it takes most people seven exposures to an ad or individual before they even notice it.
Source: Inman (12/10/21) Burgess, Jimmy
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