Before you consider starting to” farm” for listings in a geographic area you must truly understand the following 5 points;
1) All lead generation, including farming is a” local” business
2) Start with a small farm and a very narrow market and dominate it! Analyze the three main components of an area
– Geographic- where are they?
– Demographic- who are they ( age, gender, income, net worth)
– Psycographic- what do they like and why are they moving ( schools, work, social circles etc)
3) Once you select an area, you must build it slowly and incrementally. It is OK to start with 250-500 homes and then expand from that level.
4) Know that every Listing and Sale that you make in that area, adds to your credibility
5) Be consistent with your Marketing and the fees that you charge( neighbours talk)
How to begin? Here are 10 factors to consider before starting your “farm”.
1) Your goals 6) Average sales price
2) Your budget 7) the turnover rate i.e. # Of annual sales in area divided by total homes in farm
3) Size of farm 8) The current market conditions
4) Location of farm 9) your current competition
5) # of Mets vs # of haven’t Mets 10) Your “fit” for the farm area
How to pick an area?
Look at these factors:
1) # of home that have sold
2) “Churn” rate # of sales divided by inventory
3) General Demographics ie. First-time, move-up, trophy home, move down etc.
4) Which agent dominates?
5) Future trends in the area
Type of prospecting that you should do:
Active (Prospecting based)
Knock doors around open house or new Listings
Facebook neighbourhood group, Nextdoor.com
Client Parties/Social Functions
Passive (Marketing Based)
Sponsorship of local events or teams
As you get to know more people in your listing farm, bring them into your sphere of influence by starting an intensive 8×8( 8 contacts in 8 weeks) campaign and follow up with a great annual 33 ” touch’ program.