How to Farm Successfully
How to Farm Successfully
For those Realtors® who worked in the 90’s when there was no social media or in the 80’s when there was no internet, farming was how agents marketed themselves. Real estate farming allows you to specialize in a small geographic area and it’s still a great way to generate leads, and build relationships that are the foundation of your real estate business.
If this is the first time you’re farming, you’re farming a new area, or you’re on a budget, you can start with as little as 50 to 100 homes. When your budget increases so can the amount of homes. When farming, the best place to start is where you live since you know the area and have insights into the neighborhood. No matter where you choose, you want to find a farm area that’s not already being heavily farmed by another agent or team and one that has enough turnover to warrant marketing the area. In order to figure out the turnover rate in your potential farm area, simply divide the total number of homes in the area by the number of homes sold in the last two years. Tom Ferry recommends areas with a 6% or higher turnover rate.
Farming can involve direct mail, door knocking, postcards, newsletters, email marketing, social media, websites, and more. The key to success in farming is the frequency of contacts no matter the form you choose. Postcards may seem outdated, but they can still work as long as they offer value. Whether it be neighborhood statistics, “just listed”, “just sold”, or “open house” postcards, recipes, or those that are geared toward holidays. There are tons of companies that offer a direct mail monthly campaign that can easily be set up and sent automatically to your farming area. Newsletters are also a popular and an excellent way to show your farm that you are the neighborhood expert. Sending a monthly or quarterly market update of the community to its owners not only shows that you stay aware of the neighborhood’s sales activity, it provides residents with something of value that they’ll look forward to receiving on a regular basis.
Door knocking doesn’t necessarily mean you have to knock on doors if you don’t want to. It means getting out to the neighborhood, passing out or leaving marketing materials, and introducing yourself to the neighbors you meet. Make sure you know the market statistics because the question you will get asked most often is, “how’s the market?” You want to know how many homes are currently on the market in the neighborhood, how many pending, how many sold in the past month, six months, or year, average sold price, and the average days on the market from active to sold. This information should always be readily available.
Open houses are a cost-effective way to get your name and yourself seen, attract buyers, and meet the neighbors in your farming area. Owners who are thinking about selling, like to check out open houses in their neighborhood prior to putting their home up for sale. If you don’t have a listing yet in your farm, reach out to an agent who does and ask if you can do an open house for them. Once you do get a listing, hold an open house as much as the sellers will allow to not only to try and sell your listing, but to show the neighbors your determination and commitment.
Email marketing is one of the best ways to reach your farm, the only difficulty is obtaining the email addresses. To gather email addresses, include your website on all your marketing materials and have a place on your website where they can sign-up for your email newsletter. Having sign-up forms at the events you do in the neighborhood is a great method where owners call fill-out their information. Offering a drawing helps motivate them to actually want to fill out the form. Whether you meet neighbors by direct mail, at an open house, or at their front door, it’s crucial to always ask for their email address to be able to provide them with regular market and neighborhood updates.
As the neighborhood expert, you need have a neighborhood Facebook page that will allow you post announcements about the area, stay in contact with past clients, connect with new potential clients, and create event pages. Follow all local restaurants, businesses, and communities and share events that pertain to your farming area. Make sure when using hashtags in any of your posts to tag the area you are farming. You can also create Facebook and Instagram ads that only target the people in your farming area.
Creating a website, and a domain name, that is specific to your farm will show that you are the neighborhood expert. Post things of value on the page such as; just listed and just sold links, open house invitations, and other community events and information. Be sure your website reflects the area, your brand, and your expertise. Include a home search function or IDX so visitors can search for homes. The website should feature videos and photos of the neighborhood and local amenities like nearby shopping centers, schools, parks, trails and more.
Videos are essential in staying current and can be used on your social media and website. Try interviewing local experts, do community tours, and preview new listings in your farm. Create a video blog and talk about community events in the neighborhood, market update, or tips. Photos are the perfect way to capture local events, restaurants, or brag about local school sports teams. Don’t forget about drone videos and photos of the neighborhood to add to your website and social media pages.
Cold calling has also changed throughout the years and when calling on your farm, your hope is they’ve already received at least one postcard from you, a newsletter, and seen an open house sign. When calling owners in your farm, invite them to an upcoming open house, tell them about a recent sale that is similar to their home, or talk about the real estate market in their neighborhood, don’t forget to ask them if they have any interest in selling in the next six months. The more you farm the area, the more your call will be a warm call instead of cold.
There are so many other ways to market to a farm. Below are a dozen marketing ideas to try.
·Sponsor community events, school fundraisers, or sports teams, or something as simple as the semi-annual garage sale for the neighborhood.
·Get a booth at a local farmers market where you can hand out your newsletter, giveaways, and talk to the neighbors.
·Partner with a local lender and farm the area together.
·Reach out to your local home warranty rep, termite company, or home inspectors and ask if they have any marketing materials that they would be willing to provide then you can attach your business card and pass them out.
·Tour all the homes that comes on the market in your farm. Nothing screams “expert” like an agent who can rattle off the features and drawbacks of any address or know the newest listing and the latest sale in the neighborhood.
·Join the chamber of commerce and attend the mixers and other community events. Bring printed marketing materials, not just your business card, to make sure they remember you.
·Go to local meetups to meet local business owners, community leaders, and people who share your interests. Go to MeetUp.com and discover how you can get involved in the area you’re farming.
·Attend city planning meetings to keep up-to-date on any zoning changes or new developments.
·If the farm area is located in an HOA, attend HOA meetings (if allowed) and meet owners. Plus, you’ll have the ability to talk about or use the information you gained on your website or social media pages. If the HOA puts out a newsletter, find out if you can include an ad in the newsletter or ask if you can write a column for the newsletter about the real estate market.
·Go to local concerts in the park and if allowed, sponsor the event with branded popcorn bags or water bottles.
·When dining at local restaurants, take photos, meet the owners, and post on your social media and neighborhood website.
·Be an expert in the neighborhood’s amenities so you’ll know which park is the best for kids, dogs, or parties, when the farmer’s market is being held, any updates on schools or local businesses, and the calendar of events.
No matter what you do, your message must provide value and you must be consistent in what you send or pass out. If you know the neighborhood real estate market, be at all the community events, and do open houses then your farming will be successful.
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