Figuring out a farm area

7 Replies

Hi fellow BP agents,

I'm newly licensed and I'm looking to do what every licensee is trying to do.  Find leads!  Without a large marketing budget it's sweat equity for me.  But to keep myself from getting dizzy with analysis I've decided to farm a small geographical area that I'm already very familiar with.   I could narrow it down to a zip code but the 2 zips I'm interested in are 15 sq mi and 9 sq mi.  I'm not afraid to drive and walk a lot but those both seem too large to me.  My question to all of you is what criteria and resources should I be looking at to decide exactly which sq mi or 2 is best for me to start farming in?  

Thanks!

So I would do an analysis using your MLS data or perhaps your title rep can help, to figure out the turnover in the two areas - if there are specific subdivisions or neighborhoods that are experiencing above-average turnover, I would focus on those areas specifically - especially if the majority of sales weren't dominated by just one agent (as a new agent you can certainly break into a neighorhood dominated by someone else but its going to take some time so if you are looking for sales now that would not be a stategy I would bank on). Likewise, if a neighborhood attracts "sitters" (people who aren't going to move for 25 years) and its only 10 years old and you are looking for some quick business that's not a place to focus. You might consider looking at if there are any subdivisions in the zip codes you are considering that are 2-5 years old? If so I would focus on those - its time to start seeing turnover in those neighborhoods. Hope that might help a little. Good luck!

@Brett Synicky  @Larmon Cummings Jr 

Look for neighborhoods that are around five years old or less.  They probably won't already have a "neighborhood agent" since that kind of domination usually takes a while to build up.  People more every seven years on average, so I would want to already be top of mind once they decide to leave the neighborhood.  

I would also focus on price ranges that have the most activity. So, look in your MLS, and see what is actually moving. Less expensive homes typically sell more often than high priced homes, but I would prefer to focus on something more mid-range since commissions are based on sales price. Just make sure it's a price range that still sells.

The others have given good suggestions.

For me, being close enough to not hate driving there often was a big deal.  It's also nice to actually care somewhat about the neighborhood.

Once you pick, you can try real hard to get a listing there, and once you get that you can really bombard.  Yard sign, logoed open house signs, door knocking, open house flyers, just sold flyers, etc etc

I assume Brett you are talking about residential. If that's the case figure out what price range and asset type you want to focus on Condo's, single family detached, town homes, 2 to 4 unit properties, etc.

Find the most successful broker in that niche for your area and work for them to learn the ropes. Instead of thinking you will get further on your own learning slow you can skip that and see how the best do it.

Save spending a bunch of money and then having no closings and flaming out. I have been in the business almost 11 years now but on the commercial side. I own my company as the principal broker. The question will comes down to " How bad do you want it?? " I find 99 percent do not have what it takes long term.

Good Luck

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