How Can I Make Money as a New Real Estate Agent? This is a question often asked by new and existing real estate professionals. It's also a great question. One type of prospecting I’ve always enjoyed is referred to as farming a particular area of your community. In my NEW online coaching program, "5-Minutes to Jumpstarting Your Real Estate Career," I help you learn how to prospect by "farming." I have made thousands of dollars using this prospecting method over my 40+ years as a real estate professional, and I want to share my tips and success secrets with you in my coaching program.
Normally, a farm area will consist of a subdivision or other geographical boundaries that you determine for soliciting consumers about their real estate needs. Farming can be a fruitful and profitable prospecting method when performed correctly.
A farm area should consist of anywhere from 100 to 500 homes. I have seen agents who farm a much larger area than this, but to be effective you should focus on a number and size of homes you feel confident you can handle.
There are many ways to develop your database and list for this farm area, depending on your location and the information available to you. Some agents in larger markets have the ability to pull tax records and download other key information about consumers in the farm area, along with mailing addresses and other important information about the properties. In my coaching program, "5-Minutes to Jumpstarting Your Real Estate Career," I will give you some video examples of how to do this through your MLS.
Unfortunately, some real estate agents (like myself) live in rural areas where a farm area may need to be cultivated and developed manually. There’s nothing wrong with getting to know your farm prospects and consumers by using the old-fashioned method for developing your database.
As with your other prospecting and databases for referral networks, and your center of influence, creating a database for your farm area is important. After all, you will be mailing information to the farm area regularly. You will also need to visit your farm area in person from time to time. Because of your various types of communication to your farm area, I suggest you keep your farm area to a number that you can adequately and consistently work.
Why is Farming Effective?
Why is farming effective for the real estate professional? First, it allows you to begin building relationships with those who live in your farm area. Keep in mind that many of the people who live in a specific geographic area that you farm may have real estate needs in the near future. They may also know family members, coworkers, or friends who are getting ready to buy or sell real estate in your local marketplace. They might even know folks in other states or areas who need to buy or sell. Through farming and keeping your name front and center, you will be the "go to" person when they think of real estate.
“As with your other prospecting and databases for referral networks, and your center of influence, creating a database for your farm area is important.”
Second, your farm area customers would like to know what is going on in their subdivision or community. After all, wouldn’t you like to know what your home might be worth if you lived in the subdivision and you were not actively involved in the real estate business?
There are several examples I will provide that will help you win business in your farm area through my new coaching program, "5-Minutes to Jumpstarting Your Real Estate Career," that are FREE to use and create. I think you will be amazed by the video tutorials I demonstrate in the course and how you can create a "market area report" with my FREE tool. It's the number one way to get people to remember your name when farming a subdivision.
I’m sure you will come up with additional ideas and suggestions from your broker and other agents in your office after completing my course. The important point to remember is that you want to build a relationship in your farm area. You also want to provide your farm area with activity and information on what is happening in their local marketplace. Granted, I have heard of agents who have put together subdivision directories, newsletters, and tips on home repairs, recipes, and much more when communicating with a farm area. Still, at the end of the day, I believe most people are curious as to what housing prices are doing in their location or subdivision. Making decisions about real estate is usually one of the largest financial decisions most consumers will make in their lifetimes. Helping consumers to understand what’s going on in the marketplace, and how their financial investment is performing is a huge opportunity for you to assist consumers. Yes, my coaching program will show you how easy (and FREE) this process is accomplished.
To recap, the first step is to select the geographic or specific subdivision that you want to work as a farm area. I normally encourage real estate agents to look at the multiple listing activities and determine where a good region or subdivision might exist. In other words, you want to pick a subdivision that is active in sales and properties that are relatively easy to sell. Therefore, you should spend some time researching and investigating the subdivision you want to begin farming. Keep in mind there may be other agents farming in this location; however, don’t let the old adage “everyone else is doing that” scare you off and away from farming a busy and vibrant subdivision. Remember, you are armed with determination and skills.
I would love for you to find out more about "5-Minutes to Jumpstarting Your Real Estate Career," and discover how you can take your new or existing real estate business to a new level. The course is easy to follow, (on your iPad or phone), includes business planning worksheets, checklists, letters and much more.
Go out and make it a GREAT day,
John - "The Real Estate Tech Guy"