How to Farm in Real Estate

In the competitive world of real estate, agents are constantly seeking effective methods to generate a consistent flow of quality leads. One powerful approach that often yields impressive results is Farming. However, many agents fail to harness the full potential of this strategy due to common mistakes and misconceptions.

Some say direct mail is dead. But I can tell you first-hand that this couldn't be further from the truth. Our law firm, atCause Law Office, mails 40,000 - 50,000 postcards every month. We started with 6,000 but when we saw a few leads, we quickly increased the budget. Our income is directly proportional to the number of mailers we send out.

I once worked for a direct mail company and witnessed what was successful and what wasn’t. The Realtors who crushed the farming game consistently saw between 10-15 monthly listing appointments and most had a closing percentage of 75%, between 7-11 new listings every month!

This article will explore the key steps to successfully farm for real estate listings and maximize your chances of securing lucrative deals.

Calculate Your Return on Investment (ROI). Before delving into the logistics of farming, evaluating the potential return on investment is crucial. Determine the value of one successful sale and the subsequent commission you would earn. For instance, if a $500,000 listing generates a $15,000 commission, I can almost guarantee that your initial investment will be far below this.

Don’t be scared off by the initial investment. The ROI is actually through the roof once the numbers are calculated.

Target the Right Audience. To optimize your farming campaign, focus your efforts on the right audience. Direct your mailers toward homeowners who have owned their properties for at least five years and possess home equity. Additionally, tailor your mailings to specific price ranges that align with your desired listings. If you’re trying to get listings, skip mailing to renters. They are obviously unable to sell the property.

Partnering with a reputable direct mail company can help you acquire a highly targeted and specific mailing list.

Repetition and Consistency. Building credibility and trust among potential clients requires consistent and repeated exposure. As an unfamiliar agent, homeowners may not respond immediately. However, maintaining regular contact can establish yourself as a reliable professional. Aim to mail once every 30 days for at least six months to reinforce your presence and increase the likelihood of garnering a response.

Mail the Correct Quantity. One of the biggest mistakes agents make in farming is underestimating the required quantity of mailers. While some may send a few hundred pieces per month, this pales compared to the numbers necessary for significant impact. Successful agents who yield impressive results typically mail between 10,000 and 20,000 pieces monthly. This type of volume increases the chances of your phone ringing with interested leads.

Provide an Enticing Offer. To differentiate yourself from competitors, include an attractive offer on your mailers. Consider providing free professional photographs, which can greatly enhance a homeowner's perception of your services. While a free comparative market analysis (CMA) might not be as compelling, an enticing offer can pique interest and motivate recipients to take action.

Use Postcards Instead of Sealed Envelopes. When choosing your direct mail format, opt for postcards over sealed envelopes. Postcards require recipients to at least glance at the content, even if they eventually discard it. In contrast, sealed envelopes often end up unopened in the trash, resulting in missed opportunities. Maximize visibility and exposure by leveraging eye-catching postcards that command attention.

Invest in Professional Design. The visual appeal of your mailers plays a crucial role in capturing recipients' attention. Consider engaging a professional designer who understands the essential elements of an effective postcard design. Elements such as an attention-grabbing headline, clear contact information, captivating images, and compelling copy can significantly enhance the overall impact of your mailers. Check out this ARTICLE for more information.

Outsource the process. Attempting to manage a high-volume farming campaign alone can be overwhelming and time-consuming. Instead, leverage the expertise of a reputable direct mail company to handle the logistics for you. By outsourcing this task, you can focus your valuable time and energy on other essential real estate activities that drive your business forward.

Real estate farming can be a powerful strategy to generate consistent high-quality leads and listings. By avoiding common mistakes and implementing the proven steps outlined in this article, you can significantly increase your chances of success.