Farm your local market for new homes in 6 easy steps

Want to be seen as a new home’s expert? The go-to agent?

If so, farming is a no brainer. Let’s not spend time on explaining what faming is or isn’t. Let’s just dive right into how you can farm your local market for new home neighborhoods and communities.

Let’s get started.

#1: Define your market area:

WHY: You cannot be all things to all people. Customers will gravitate to an agent that possesses a knowledge of the local market.

HOW: Define the geographic region and boundaries for your research. Google Maps is a great start! Want to go old school? Then grab a map, tape it to a white board, grab a marker, and outline the area you want to call yours. 

#2: Research your market area.

Identify the new home neighborhoods and communities in your defined area. Many of the most successful agents have between 6-10 neighborhoods and communities in their preferred network. Less than this is likely not adequate and more might be difficult to manage.

You can find neighborhoods on-line (i.e.: Google), newspapers (is there a real estate section?), through the local Builders Association, NewHomeSource.com, and, yes, even your local MLS will likely have some of the new homes listed. Usually not all, but at least some. 

Start by researching each of those communities online and explore the surrounding resale inventory for that area as you go. Use all of the information available to become proficient in the area.

#3: Define your product sphere:

Your product sphere should be adequate to satisfy the majority of your customers. Is this single-family? Multi-family? Active Adult?

How about price point? If most of your customers seem to suggest the sweet spot is $400,000 to $500,000, spending more of your due diligence in product that is above $1,000,000 may not be the best use of your time.

#3a: Niche agent:

Are you considering being a niche agent? Want to be considered the townhome guru? If so, this is the time to stake your flag so you can laser focus your research.

Pause:

So, you have your area defined and your potential product identified. Does the market health dictate you expand or shrink your collection? Many of the most successful agents begin small and expand accordingly. If you bite off more than you can chew, you may get frustrated and simply give up. Be realistic and set attainable goals.

Best practice: Monitor the market area’s turnover rate and adjust your potential product accordingly.

#4: Get out of your office:

Once you have each neighborhood and community identified, call the community, and set an appointment to take the full community tour with the on-site sales agent. During introductions, set yourself apart from other agents by making it clear this is not just a one-time visit. You are there to build a relationship and sell more of their homes together.

Take the full tour and immerse yourself in the community as a buyer might. It is important you experience what your customer will, so that you can properly set expectations and be an expert.

While on-site, take the time to appreciate the subtle nuances of each builder. What are their value propositions? What makes them unique? When you are with the on-site team, be sure to grab some additional copies of their sales collateral to keep on hand for your customers and be sure to make a packet for yourself. Keep in mind, digital copies are usually preferred. 

#5: Agent tool:

You have access to the Community Evaluation Form. Don’t have it yet? Well, get it (visit our Facebook Group or send us a note).

The Community Evaluation Form is your tool to gather all the information you need to professionally represent the neighborhood or community to your customer.

#6: Rinse and repeat:

This may shock you, but market dynamics change. Say what? Yes…I am serious. Just because you stopped at a neighborhood 6-months ago does not mean you are done. If your market is active, you may need to stop there every couple weeks, just to connect, and get the most current inventory and incentives (can you say coin?). If your market is a little slower, maybe once a month is adequate.

Your visits will also uncover planned inventory (future neighborhoods and new models) that may be of interest to your next customer.

Your objective is to be a trusted resource for the builder and the on-site team. This suggests you stay in touch with them – be seen and heard. You don’t want to be a pest but guess who the on-site will call when they have a customer needing to list their home before they can commit to a new build? Do you think they will call the agent who stopped by once 6-months ago or the agent who has been there several times over the past couple months? This was a rhetorical question – no need to post a reply.

The best part about this effort is your ROI will be well beyond you time investment. Remember the old farming analogy – you reap what you sow? Well, we agree.

Cheers!