What is the real estate farming system? In this episode, Price Rainer defines the system and shares a step-by-step guide to building one that is effective.
The key to farming
- Evaluating the right property requires putting in the time to do homework.
- Sales reps often get caught up in the aesthetics of the community but this shouldn’t be the only factor in the process.
- The key to evaluating a neighborhood is the numbers. Look for a community without a dominant listing agent.
- A fragmented market is where you have several players who each have a little bit of market share with a significant number of homes. These numbers work for investment in that company.
- Find a place with a number of rotations where you can take market share.
- The goal is to get at least 10% of the market for the first year. You can go higher but keep 10% as your baseline.
Becoming an expert
- Do a historical deep dive into the community, whatever the time frame is.
- The key stats you need to know are the following: the number of homes sold in that area, the average price of the home sold, price per square foot, the days on the market, and list price to sales prices.
- You also need to look for the monthly breakdown of the annual sales of the neighborhood.
- Data harvesting is the first part of farming. Collect all the contacts in the community, whether it’s through the property appraiser’s website or another source.
- You can also use direct mail and send out marketing materials that reflect the new properties listed as sold, contain key information, or offer other helpful statistics.
- Making phone calls is also effective. Check on prospects and see how they’re doing. You don’t have to pursue closing the deal during the first call. Your goal is to touch base and to build rapport.
- When speaking with customers and prospects on the phone, let them talk. As you do, listen, and adjust to what they are saying.
- You can also improve rapport by writing a thank you card. Handwritten notes with attached business cards get more positive responses.
“The Real Estate Farming System and Your Step-by-Step Guide to Building One” episode resources
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