![]() The company places a premium on integrity and professionalism, creating a positive environment for both employees and clients. The workplace culture is collaborative and goal-oriented, fostering a sense of camaraderie among colleagues. The management team is supportive and provides valuable guidance to help agents succeed. ![]() Working at Mark Spain Real Estate, I learned the importance of effective communication, negotiation skills, and the intricacies of the real estate market. A typical day at work involves a blend of client meetings, property viewings, market research, and administrative tasks. Reprinted with permission.Mark Spain Real Estate is a prominent real estate agency known for its strong work ethic and customer-centric approach. ![]() ![]() Ready to launch your next farming campaign? Learn how by checking out these free learning resources from Realtors Property Resource.Ĭopyright NATIONAL ASSOCIATION OF REALTORS®. An area with a variety of agents will more than likely be more open to a new face. If one agent dominates the area, you may want to look elsewhere. Lastly, knowing who is currently marketing to your potential farm area can lead to a make-or-break campaign. To calculate months of inventory, from your farm area, divide the number of active listings on the market by the number of homes sold per month on average during the previous 12 months. The figure is primarily used to help REALTORS ® predict how many listings are needed to keep their pipelines active over a given time period.Ī healthy market usually has between five and six months supply of inventory. To figure out the turnover rate in your potential farm area, divide the number of homes in your farm area by the number of homes sold in the last 12 months.Īnother important measure of potential success is “months of inventory,” a calculation used to indicate how long it would take for the homes currently available to sell at the market’s present pace. For example, an area with 500 residences but only 25 sales in the past year only yields a mere 5 percent turnover rate –– not high enough to earn a decent profit even though there are so many homes in the area. Most agents look for areas with a 7% or higher turnover rate. One of the most important aspects of identifying a farm area, turnover rate, is a simple calculation that helps to identify whether the area has enough sales activity to sustain your prospecting campaign. That number is negotiable though as you don’t want to choose an area so large that your marketing effort is spread too thin to make a difference. Real estate experts recommend those just starting out choose a neighborhood that has up to 500 homes to make the effort worth the investment. Your number of needed closings (from above), needs to be proportional to the number of homes in the farm area and the area’s turnover rate (which we’ll address next). Then jot down the number of closings you need to succeed. Predicting your average commission per transaction will determine how many properties you will need to close to make a profit in your farm area.įrom your area, pull all of the sold listings over the past two years to calculate the average price range of homes sold and then calculate what your commission would have been. The method includes a series of steps that analyze a given neighborhood, ZIP code or market area to determine how many homes are most likely to sell, at what price range, and how long they will be on the market.Ī good farming strategy involves working through a set of five exercises to determine the area’s viability. ![]() Real estate farming is possibly the most proactive position an agent can take to build inventory. Thanks to record-setting low inventories, today’s REALTORS ® are taking the reins, knowing they must create their own success by digging deep into solid, sustainable marketing campaigns that generate new business and position them as long-term market experts. ![]()
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