This is the last of my blogs about the huge topic of Farm Marketing. I had stopped last week with Detailing Your Farm Marketing Plans and now I’d like to finish the list of questions that need answering and ideas for marketing to your farm and share my video on how newspaper Farm Marketing works.
Agent Analysis for Farm
- How many total transactions did you have last year in your business?
- How many total transactions did you have in the farm area?
- What was the mix of buyers or sellers in the farm area?
- Based on the above information, what percent of your business was in the farm area last year?
- For every transaction in the farm area last year, gather the transactions or active listings this year, the name of person, address in the farm, and add a few sentences explaining the original source of the lead and how you won them as a client and their current relationship level.
- How many people in the farm do you know?
- How many people in the farm have you actually met, been introduced to by name, and made them aware you are a real estate agent?
Sales Projection for a Farm Area
Here is a sample sales projection for a farm area:
- Number of Properties: 1,000
- Transactions Per Year: 50Turnover Rate: 5%
- Average Price: $200,000
- Average Listing Commission: 3%
- Total Sales in Current Year: $10,000,000
- Gross Commission: $300,000
- Market Share Goal: 20% of all transactions
- Commission to Agent: $60,000
- Marketing Cost Percentage: 20% (assume budget of ten percent to spend on marketing)
- Marketing Budget: $12,000
- Marketing: About $12/year per property
Farm Marketing Actions
The following list includes a growing list of farm marketing ideas:
- Export data from the MLS
- Export data from property tax records
- Data provided by title company and analysis
- Consumer data from INFOUSA
- Competitor research on any agent with over ten percent of the market share
- FSBO data
- Expired data
- Change of address records
- Web search for street names
Segments of Farm
- Renters who are potential buyers
- Absentee home owners/investors
- People you have met
- Recent buyers for adopted buyer efforts
- Influencers or community leaders
- Provide property statistics report
- Invite to a community gathering
- Invite to an upcoming neighborhood open house
- Introduce yourself
- Brunch at your home
- Dinner party at your home
- Welcome adopted buyers
- Group garage sales
- Property statistics
- Handwritten notes
- Neighbor open houses for listings
- Just listed and just sold
- Buy some useful tools and offer free loans for neighbors
An agent will naturally progress from working with buyers to working with more sellers as the business grows. If you cannot hunt expireds/FSBOs, then you should start farming as soon as you can invest $200/month to send mail to 200 homes in a small area. If you can hunt, remember to identify when to start farming activities to balance your business and maximize long-term growth and profits. Whatever you do, do not start farm marketing unless, or until, you are 100 percent current on more critical items such as client marketing and lead wasting.
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