6 Reasons To Become A Real Estate Agent Who Dominates A Farm Area
Farm Area Marketing vs Niche Marketing
Let’s get one thing straight: “niche marketing” and “farm area marketing” are not the same thing.
Niche Marketing is choosing one property segment (eg, first home buyers, investment properties) whereas Farm Area Marketing is choosing one geographic location (eg, a specific suburb or part of a suburb).
Here are 6 primary reasons it makes sound commercial and professional sense to be a Real Estate Agent who nails Farm Area Marketing.
Real Estate Agent Farm Area Marketing
#1 – you can very easily dominate
Dominating a Farm Area is easy! Why? Because many real estate agents for some stupid, strange reason don’t (or won’t) farm!
Therefore, because very few real estate agents farm, and a very small percentage of whose who farm do it well, it’s really easy to rise to the top in an area.
In fact, you can rise to the top in about 90 days. That’s not long!
#2 – you’ll get known as the specialist
It doesn’t take long for you to become known as the Specialist Real Estate Agent in your farm area.
Specialists earn more
As you will already appreciate – specialists earn more.
Think about the medical specialist you go to for important health decisions, advice and action, versus the general practitioner you go to when you have a sniffle.
I wonder when a heart surgeon last had someone attempt to negotiate him / her down on their fee…?
Being a Farm Area Real Estate Agent puts you in the role of Specialist.
#3 – people listen to specialists
You will no longer be in the position of having to justify, defend or negotiate your fee.
RELATED READING: How To Never Discount Your Fee Ever Again
When you ask for VPA (vendor paid advertising) your advice and recommendations will be followed.
When you suggest home staging, you’ll be listened to.
#4 – the flow on effect
Real Estate Agents who specialise in a farm area will soon discover their area of expertise (their farm area) gets “magically” expanded into other areas.
This is where word-of-mouth & referral marketing kicks in on steroids. You’ll soon discover that people will start referring you simply because they’ve seen your signboards dominating their local neighbourhood.
Surprisingly, it won’t matter that you’ve never sold someone’s house! But when they’re asked which real estate agent they’d recommend, the name that will come to mind (if they don’t already have a personal relationship with a real estate agent) will be the agent whose signboards are all over their neighbourhood.
#5 – it’s easy & predictable!
Farming an area is predictable. It’s simply a game of numbers.
Given the average home owner buys/sells once every 5 years or so (depending on whether we’re in a boom or bust cycle) it’s easy to work out just how many houses will come up for sale in any given farm area.
For example, let’s say you’ve got a farm area of 1,200 houses, of which 1,000 are owner occupied (to make the maths simple). Using the ratio that people sell once approximately every five years means that at any one time approximately 20% of properties will be on the market for sale.
In your farm area of 1,000 owner-occupied houses, that’s approximately 200 properties coming up for sale in any one year. Or approximately 3-4 every week.
When you dominate an area (and it’s seriously not hard to achieve!) you’re going to be front of mind to get the listings for the majority of those 3-4 properties!
#6 – you’ll be able to recognise & preempt early warning Getting-Ready-to-Sell signs
Farmers know their crops, their animals, their soil. They start to recognise early warning signs that something is about to change. And then they’re ready.
When you’re working inside your farm area every week you’ll be able to recognise when a property is about to come on the market. You’ll start to develop a sixth sense.
If you’re only occasionally in an area you won’t think twice if you see a large rubbish skip bin in a driveway. You won’t even notice curtains down and internal decorating taking place. Or a sudden spruce up will go unrecognised for what it is.
But when you’re working on your farm day in, day out you’ll notice all of these little activities. This will mean you can implement a marketing campaign specifically for scenarios like this. Because you’ll be ready.
You’ll have the jump on other agents!
Your Take Away Action Steps
Identify your farm area
- 1,000 – 2,000 properties
- socio-economic area you can relate to
- properties turnover once every 5 years or so (minimum)
- owner occupied area (ideally 1,000 properties are owner occupied)
- an area people want to live in (ie, not one that’s being rezoned for a six lane motorway).
- check out the statistics (turnover, median sale price, owner occupancy rate).
- an area that’s safe and easy to walk around.
- drive around the area – is there already a dominant agent? What do you know about that agent? Does the dominance look like “luck” or “smarts”? Are you prepared / do you want to take this agent on in this area? What market share does each agent / office have in this area? Can you see yourself relating to the residents of this area? Why/not?
Then start farming!