Definition
Farming is a strategic real estate marketing approach where a broker or agent focuses on a specific, limited geographic area or type of property to generate business. The agent “farms” the area by taking consistent actions like networking, staying visible, and following up with potential clients, much like a farmer plants, waters, and nurtures crops to eventually reap the harvest. The goal is to become the go-to real estate expert in that area.
Examples
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Residential Subdivision Farming: A real estate agent decides to focus on a particular residential subdivision. The agent holds open houses, sponsors community events, distributes newsletters, and consistently updates residents about real estate market trends within that subdivision.
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Niche Market Farming: An agent could also farm a niche type of property, such as luxury homes or waterfront properties, by specializing in the marketing and nuances of these specific homes to attract high-end clientele.
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Commercial Farming: A broker might choose a specific commercial district, focusing on becoming the leading authority on retail and office space move-overs within that area, attending business networking events, and providing market analysis to local business owners.
Frequently Asked Questions
Q: How long does it take to see results from farming?
A: Farming can take several months to years to yield significant results. It requires consistent and persistent marketing efforts to build trust and familiarity within the target market.
Q: What strategies work best for real estate farming?
A: Effective strategies include direct mail campaigns, open houses, local sponsorships, digital marketing (e.g., social media and email newsletters), and regular follow-ups.
Q: Is it expensive to start a farming campaign?
A: The cost can vary, but initial expenses may include printing materials, advertising, event sponsorships, and digital marketing efforts. However, the investment often pays off in increased listings and sales over time.
Q: Can I farm more than one area at a time?
A: It’s possible but recommended to start with one specific area to ensure focus and effectiveness. Expanding to multiple areas can be considered after establishing yourself firmly in your first farm area.
- Geographical Farming: The practice of focusing marketing efforts on a specific geographic area.
- Niche Marketing: Targeting a specific segment within the market based on property type (e.g., luxury homes, waterfront properties).
- Door Knocking: Visiting homes within the farm area directly to meet residents, introduce oneself, and offer real estate services.
- Consistent Touch Points: Regular and systematic outreach efforts to maintain presence and rapport with potential clients (e.g., monthly newsletters, holiday cards).
Online Resources
References
- “Real Estate Farming: Explode Your Real Estate Lead Generation Systems” by Charles King
- “The Millionaire Real Estate Agent: It’s Not About the Money…It’s About Being the Best You Can Be!” by Gary Keller
- National Association of Realtors. (n.d.). Real Estate Farming Strategies. Retrieved from www.nar.realtor
Suggested Books for Further Studies
- “Real Estate Farming: The Real Estate Agent’s Bible for Farming Estates from A to Z” by Willem Keesmaat
- “The HyperLocal HyperFast Real Estate Agent: How to Dominate Your Real Estate Market in Under a Year” by Daniel James Lesniak
- “High Performance Habits: How Extraordinary People Become That Way” by Brendon Burchard
Real Estate Basics: Farming Fundamentals Quiz
### What is the primary goal of real estate farming?
- [ ] To diversify the types of properties an agent handles
- [ ] To offer agricultural services to homeowners
- [x] To become the go-to real estate expert in a specific area
- [ ] To sell farming equipment alongside real estate
> **Explanation:** The primary goal of real estate farming is to establish oneself as the foremost real estate expert in a specific targeted area or market segment.
### Which of the following is a common strategy used in real estate farming?
- [x] Hosting open houses
- [ ] Diversifying geographical focus
- [ ] Neglecting follow-ups
- [ ] Avoiding face-to-face interactions
> **Explanation:** Hosting open houses is a key strategy in real estate farming as it allows agents to network with potential buyers and sellers within their target area.
### How long might it typically take for farming efforts to start showing results?
- [ ] A few weeks
- [ ] Just one month
- [x] Several months to years
- [ ] Instantly
> **Explanation:** Real estate farming requires consistent effort over a period that can span from several months to even years to establish credibility and see substantial results.
### What is not a recommended focus area for a new agent starting to farm?
- [x] Multiple geographically far-apart areas
- [ ] A single residential sub-division
- [ ] A specific niche like luxury homes
- [ ] A particular commercial district
> **Explanation:** New agents should focus on one specific area rather than multiple, geographically diverse areas to ensure targeted and effective farming efforts.
### Which of these is not part of real estate farming activities?
- [ ] Sponsoring local events
- [ ] Distributing newsletters
- [ ] Networking in the community
- [x] Completely ignoring digital marketing
> **Explanation:** Ignoring digital marketing is not advisable. An effective farming strategy often includes a mix of traditional and digital marketing efforts.
### What advantage does an agent gain by farming a limited geographic area?
- [x] Community recognition and trust
- [ ] Exposure to a wider geographic audience quickly
- [ ] More administrative duties
- [ ] Diversified market risk
> **Explanation:** By consistently marketing in a limited area, agents can build community recognition and trust, positioning themselves as the local expert.
### For real estate farming, why is it important to maintain consistent touch points?
- [ ] To avoid over-communication with clients
- [ ] To increase operational costs
- [ ] To remain flexible with marketing efforts
- [x] To keep a constant presence and reinforce the agent's expertise
> **Explanation:** Maintaining consistent touch points ensures that the agent remains top-of-mind for local residents, reinforcing their expertise and reliability.
### Which aspect is less crucial in a real estate farming strategy?
- [ ] Regular follow-ups with clients
- [x] Rapid expansion into multiple sectors
- [ ] Hosting community events
- [ ] Providing market updates
> **Explanation:** Rapid expansion into multiple sectors can dilute focus and efficiency; it is less crucial than building a formidable presence in a targeted area first.
### How can an agent measure the success of their farming efforts?
- [x] Increased listings and sales in the focused area
- [ ] Decreased marketing expenses
- [ ] The agent's ability to work in multiple areas
- [ ] Number of events attended outside the target area
> **Explanation:** Success can be measured by increased listings and sales within the targeted farming area, indicating that the marketing efforts are yielding results.
### Why might starting with more than one farm area be challenging?
- [ ] It limits the number of brochures needed.
- [ ] It reduces the overall marketing cost.
- [x] It can dilute the effectiveness of focused efforts.
- [ ] It guarantees quicker success.
> **Explanation:** Starting with more than one farm area can dilute the effectiveness of efforts, making it difficult to build a strong, recognizable presence in any one area.
