For newer agents the concept of farming might be unchartered territory. I define farming as targeting a specific community in which you solicit the majority of the neighborhood for business.
The concept is to establish and brand you as THE community expert. Farming is a long-term investment and not for the faint of heart. You need to be committed to this strategy, for agents that make it through “quiet time” – that is the gut wrenching, time standing still period until someone contacts you within the farm for business… in this case, a listing – the payoffs are windfall like.
When talking to agents about successful farming, the first picture that comes to mind is that agent driving down a street in their farm and EVERY for sale sign is theirs. While this field of dreams is pretty farfetched, it still illicits a smile from every agent who has thought of this scenario… and I have not met an agent who hasn’t thought of this at least once.
So before you start addressing and licking envelopes, you should really consider what and where your farm should be and then do the financial math. Before I talk about financial numbers, let’s talk about your potential farm.
Most Realtors want to walk out their front door and with their arms open wide declare their neighborhood as their farm. Is this idea good or bad… it depends.
There are advantages to farming your neighborhood. You are going to have better buy-in from people that know you if you live in the neighborhood, you are also going to know people better, interact with them move often, understand community issues more intimately, and have a great tag line as a resident expert.
Before you embrace the block you live on as your new farm, there are a few things you should consider; for example, how many houses are in the farm? A good farm should consist of about 500 houses. You may need to expand your farm to increase the number of targets. If you have too few targets, farming will not be worth your time.
The very next question, you should consider is: 1B (1A is how many houses are in the area) what is the average sales price of the neighborhood. If you are going to spend time, energy, and money on your farm; make sure your payday is going to be worth it.
The number of agents that miss this one boggles the mind. Agents will go through this exercise and forget all about how much the commission checks will be when the houses start to sell.
Farming is about time and numbers.