Selecting the best geographic farm — Step 3. After identifying the generally best areas to farm, the next step is determining if there is a “dominant” agent you have to compete against. Just because you think someone is dominant doesn’t mean he or she is. There’s a simple formula to let you know exactly. Watch video to learn more.
How to select the best geographic farm for real estate seller leads. Part 3 – Dominant Realtor
In the last blog, we discussed how to determine the turnover rate in potential geographic farming locations and in your sphere of influence. We also learned how to get listings for your real estate business by first determining average sales price in a potential geographic farming neighborhood and multiplying by the turnover rate. When you follow these simple mathematical steps, you will find what I have called the sales turnover number.
So, when using geographic farming as one of your real estate marketing strategies, first you look at turnover rate, then you look at the sales turnover number to determine where to begin geographic farming. These are not the only two real estate marketing tips you need to use. Today we will talk about the third thing you need to do, as a realtor, to determine the ideal geographic farming spot. Next, you have to look at is what I’ll call ‘agent domination’. Let me give you a contrasting example.
Determine whether a potential geographic farming location has real estate agent domination before investing your real estate agent marketing budget in the wrong place
Let’s say that you find a spot that has this great sales turnover number; it’s a popular neighborhood for real estate and seller leads! There are 50 sales a year going on and you find that a single real estate agent lists 40 of those 50 sales. Then you find another place that is not quite so popular for real estate and motivated seller leads. But you find that the number 1 realtor out of 50 sales only lists 2 of those 50 sales. At that point, how do you determine which one is best for geographic farming as a part of your real estate marketing strategies?
Obviously, if you go to the one where the real estate agent is listing 40 out of 50 homes, you don’t stand a chance because they are so entrenched that you have to push them out of their sphere of influence before you even have a chance to do anything in terms of real estate lead generation through geographic farming. That takes a lot of time and money, if you can achieve it at all.
What you want to do when choosing a geographic farming location for your real estate business is to look at the location where the number 1 real estate agent only has 2 out of 50 transactions a year, because that means it’s a free-for-all for whoever wants to get the seller leads in that area.
How to generate real estate leads through geographic farming and establish agent domination in the right territories
As we are talking about investing in your brand through implementing geographic farming as one of your real estate marketing products, you have to be careful about where you invest and how you invest.
To figure out which neighborhoods have real estate agent domination, you have to make a subjective analysis as to which one, if any, has agent domination after calculating the sales turnover number. When determining the dominant agent, I would probably draw the line at real estate agents who control about 20% to 25% of the listings in that area. When choosing a geographic farming location in terms of agent domination, go no higher than 25%.
Then that gets you to number 3. There are actually two more things you can look at when determining which location is best for geographic farming, if you really want to maximize the return on your investment when implementing geographic farming as one of your real estate business’ real estate marketing strategies.
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