Score Seller Leads with Geographic Farming
“Come list me” calls are music to a lot of agent’s ears. Becoming the go-to agent for seller leads takes some strategy though. Potential clients are armed with more intel than ever online- especially home buyers. “Seller beware” with the level of data that buyers can quickly access about a home, while many potential home sellers feel like they’re blindly navigating. In order to level the playing field, sellers want to do business with an agent that’s known as the specialist in their location. You have to differentiate yourself from your competitors as the trustworthy expert in your target area. The real key here is target area.
How to Choose a Geographic Farm to Generate Seller Leads
So how do you choose the right area for your geographic farming efforts? Start with your successes. Figure out where you’ve had the most transactions and think about building from there. If you’re newer to the game, or looking to start fresh, here are some things to consider:
Average selling price
It’s no secret that for most areas, profit is built on the number of deals you close and the average price of each transaction. If you currently fall into a pricing niche and are seeing success, choose a target area that mirrors that price range. If you’re just starting out, it’s safe to focus on neighborhoods where homes sell around the average price for your region.
Make sure there is significant opportunity for sales. Find the sweet spot on property numbers: enough to make the return worth your efforts, but not so many that your marketing is spread thin. 500 homes is a good starting point for agents just branching out into a new area, and of course you can expand as business grows. Choose an active area too. Ideal turnover rates will vary from city-to-city, but a general rule of thumb is to target an area with at least a turnover rate of 6-8%. (Some will even say to double that recommendation). Regardless, you want an area that’s moving enough to give you opportunity and business.
Scope out who’s doing deals in the area. There are two ends of the spectrum here:
- The neighborhood doesn’t have any agents dominating the market share
- The area has a clear agent in charge (usually attributable to lack of options)
Either way, this presents a solid opportunity to win over residents with targeted advertising. Once they see your brand and your value, they’ll come calling on the next expert in town.
While the above criteria is pretty critical, it also bears mentioning that it can be a huge benefit to choose an area that you identify with on a personal level. Enthusiasm for an area will add authenticity to your marketing and enhance the positive interactions you’ll have with residents. When you love what you’re doing and where you’re doing it, it shows.
Although selecting the right area to specialize in can seem like a hefty challenge on its own, it’s only the tip of the iceberg. If you want to see the best results from your farm area, you have to develop the right marketing strategy to help you land more listings.