Farming is a successful tactic that allows you to focus on a specific area and community. But how do you determine which area is right for you? In today’s episode of the Real Estate Sales Podcast, Jimmy outlines five things you should know before choosing a location.
Step #1: Evaluate the area’s sales volume
- Determine if there is enough sales volume to warrant the effort that farming takes.
- If there isn’t a high enough sales volume, you likely won’t produce the number of sales that make it worthwhile.
Step #2: Is there a dominant agent?
- A dominant agent has listed at least 20% of houses within the last year. If there isn’t a dominant agent, it’s a great area to consider!
- While you shouldn’t shy away from competition, understand that a dominant agent has already built trust and relationships with the community, so farming the area might be more difficult.
Step #3: How much GCI is available?
- Determine how much gross commission income is available and if that number works with the time and money you’ll spend while farming.
Step #4: Is it worth our time?
- Outline what marketing materials, events, and other expenses you’ll need to fund.
- Assume you’ll spend $2 per household per month. Is this cost less than the expected income generated?
Step #5: Do you have the capacity to focus?
- Many people want to farm, but they’re not ready to have the time and financial commitment.
- You’ll be far more likely to farm successfully if you like the neighborhood! So finding your ideal farming area isn’t only what is profitable; it’s what you want to see grow and improve.
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