Over the last 15 years, I have had many Realtors ask me the same question when considering sending a custom newsletter to a geographical farm. What neighborhood would be best? This is one of the most important decisions to make and largely determines if your
marketing campaign will be successful. You will have to ask yourself these questions and
do a little investigating into the neighborhoods you are considering.
First, select a neighborhood you know and like. Why not work in an area that you yourself
could envision living in? It will make your job more enjoyable and it will be easier to
sell the idea of living there to potential buyers. Doing open houses will be more
pleasant, if you enjoy your surroundings. Being comfortable in the price range of a
neighborhood is key as well. Do you want to select a neighborhood with million dollar
plus listings or would you feel more comfortable farming to a neighborhood with entry
level homes? The million dollar listing will yield a higher commission but may take much
longer to sell than an entry level home.
Location, location, location! Pick a neighborhood to farm near your real estate office.
This way you will be able to better service your clients, as well as save time and gas.
Also, many homeowners prefer a Realtor’s office to be in the same city as they live in.
They may feel a “local” Realtor will have an edge in selling their home.
A Realtor may consider choosing the neighborhood they reside in, however this has pros and cons. Pros include knowing the area and neighbors, however, one con may be that some sellers may dislike sharing personal information with a Realtor who also happens to live nearby.
Is there already a dominant Realtor getting the share of business in one of the
neighborhoods you are considering sending the newsletter to? If so, it might make more sense to choose another neighborhood where no one is getting the lion’s share. This way you can brand yourself as the top neighborhood Realtor through consistent marketing and follow up.
Finally, the most important step is selecting a neighborhood with the highest potential
for sales. With all the tools available to you today such as the Multiple Listing Service,
Realtor.com or Zillow.com you can research a neighborhood’s sales activity. You do not
want to market to an overly stable neighborhood. In other words, if Neighborhood A of 500 homes only has 1% listings annually, this is only five potential listings for you.
However, if Neighborhood B of 500 home has 4% listings annually, then you will have an
opportunity at twenty listings. Provided all the homes in this example have the same list
price, you have increased your income potential four times if you target Neighborhood B!
So be sure to check out the number of annual sales in the neighborhood you are
considering, as to ensure it has enough turnover to be worthwhile!
by Lana Evans
Vice President of Sales