Selecting the best geographic farm — Step 5. This is a little-known additional step you can do in fine-tuning the selection of a geographic farm for your real estate business. Called the “success ratio,” it essentially will let you know how much work and effort you’ll have to put forth in making a sale. Watch video to learn more.
How to select the best geographic farm for real estate seller leads Part 5 – success ratio
The fifth of the real estate marketing tips I will share with you in part 5 of this blog series is what I call the success ratio. Now the real estate marketing strategies that we have looked at so far to help choose a prime geographic farming location have been geared to turnover rate, which deals with actual sales. Let’s look at how the success ratio comes into play when maximizing real estate leads.
We’ve got two geographic farms and they both have what I call a sales turnover number (defined first in blog 9 – “How to select the best geographic farm for real estate seller leads Part 2 – sales turnover rate). Both geographic farms are good in that there is no real estate agent domination. Both geographic farms have around 30 to 40 days on market and they are both doing about 50 transactions a year.
Using the success ratio to increase lead generation for real estate agents when geographic farming
Now you are trying to decide which one to target for geographic farming. So now you find that one that one has a listing-to-sales success rate of 98%, what I call the success ratio. The other has a listing-to-sales success rate of 20%, which means that you have to have 4 listings for every one that sells. Which geographic farm do you want? I want to take the easy one. I want to know that when I get a listing it’s going to sell, as opposed to having to go through 5 listings to get one sale. The listing-to-sales success rate is the success ratio. It indicates which potential geographic farming location has the highest amount of motivated seller leads and successful sales. That is another item that allows you to choose your geographic farming location carefully to maximize your investment and get the highest amount of motivated seller leads.
Here are all the real estate marketing tips to keep in mind when choosing a location for geographic farming
So let’s look at the real estate marketing tools we have so far when trying to find prime locations for geographic farming. You’ve got the sales turnover rate, which is the turnover rate times the average sales price that gives you a number. Then, you look at agent dominance – are there any agents that dominate the marketplace over another? Next, you look at the average days on market or one is going to get your money out a lot faster than the other. Finally, you look at the success ratio. These real estate marketing tips will lead to higher success rates, more real estate leads, and added motivated seller leads when geographic farming.
Now I have to say that if you want to get granular on geographic farming techniques, and you are looking at this long-term investment in marketing for real estate agents, there is actually a sixth item I didn’t tell you about for choosing prime geographic farming locations.
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