Real Estate farming, Choose the right soil!
What is Real Estate Farming?
Real estate farming is the act of focusing your marketing efforts on a certain geographic area “geographic farming” or certain types of clients “demographic farming” to add the most value for clients in the specific area.
Real Estate farming is very simple and can be applied to many areas of real estate. Think of your marketing strategy as the seeds you plant on your farm. Like a literal farm, there are two imperative elements to an abundant harvest. You need to tend to your seeds by watering them and removing weeds. You also need time for the seeds to grow.
How do I Choose the Right Farm Area?
Because it may take a noticeable amount of time to see a decent return from your farm area, your choice is very important. Here’s how to make sure you pick a productive farm area.
- Stay Close to Home
If you are just getting started, staying close to home is most likely your best option. In fact, the neighborhood you live in is probably one of your best options.
Why should I farm close to home?
- Your family, friends, and people they know are likely to be concentrated nearby, you probably know local business owners, and best of all, you can genuinely recommend the neighborhood.
- You’ll have greater flexibility to offer last-minute showings and previews. That means last minute showings won’t be an issue, and clients with busy schedules will respond better if you are available at a moment’s notice.
- Do Your Research
Another important element to choosing your farm area is the local demographics. Before you begin farming, you need to know as much as possible about the area. This will assure you can make it’s someplace you’ll be happy working in. Here are some things to research:
What do I research when looking for my farm?
- Average income
- Average age
- Is it a commuter area?
- The types of homes in the area
- Transportation options
Once you choose a geographic farm, you may also wish to narrow down a specific demographic that you want to work with. For example, you might want to focus on homes of a certain value, or a particular community. Researching the local demographics will help you make this choice.
- Choose an Area with Well Defined Boundaries
Whenever possible, try to pick a neighborhood with well-defined boundaries to help market your listings. If you do, you'll have a much easier time marketing. You don’t want to farm in Dayton and then show clients a home in Beavercreek. This may be too far if they are expecting to see homes in Dayton.
- Make Sure it’s the Right Size
In real estate farming, size matters. You need to make sure the area is large enough to ensure a decent response but small enough that you can build a name for yourself there. A good farm area would have around 400 or fewer properties. More than that may send your marketing budget sky high.