Explaining geofarming and how real estate agents can do it effectively.
Neighborhood farming, also referred to as geofarming, is a great long-term marketing strategy to help you gain market share and increase your business in a particular area. However, it can be overwhelming if you don’t have a solid plan and a way to stand out from other agents. Today, I’m sharing some of the best practices to set yourself up for success when farming a neighborhood.
Before you start, make sure you understand that geofarming is a long-term plan. Also, know that you need a presence in that area both through the mail and with your physical presence if you want to increase the strategy’s effectiveness.
Your first step should be to dive deeply into the numbers of your farm. If you have a neighborhood or subdivision in mind, take time to look at the MLS and pull data from the last 10 years. Take the size of the farm and track how many homes have sold in that area every year to come up with an average turnover rate. You should look for a rate of 6% or more, depending on the size of the farm.
“Geofarming can help you gain market share and increase your business in a particular area.”
You should also pay attention to who is selling homes in the area. If there’s one agent who’s already getting the majority of the listings in that neighborhood, they have a higher market share, so it will be more difficult for you to gain traction in that area.
Once you’ve identified a good area, put a plan in place before you start sending mail. Remember, consistency is key. You should be sending out mail once a month, or more if you’re able, but at least once each quarter. Plan out what you’re going to send and when you’re going to send it before you begin to mail the materials.
Also, make sure to combine your mailings with physical action in the farm area. This includes knocking on doors, being present at the local restaurants and shops, or holding a community event inside your farming area. All of these strategies will help people think of you as a neighborhood expert.
If you’d like a more in-depth discussion about what you should be mailing out or how to get more business from geofarming, contact me today. My team and I can help you come up with strategies that work and put a plan into action, so call or email us anytime. Also, remember, it’s not the market…it’s the marketing that makes the difference!
