Real estate industry is becoming saturated. Therefore, you need to stay on top of your game to maintain relevance as a realtor in Nigeria. One way to do so is to employ strategies like real estate farming to reach potential clients.
In this blog post, I’ll discuss real estate farming extensively, from its meaning to its benefit and different approaches to executing the strategy. Read on!
What is Real Estate Farming?
Real estate farming is a marketing strategy where realtors dominate a specific market area. This method involves a realtor selling himself to potential clients as the go-to real estate expert in the area.
Realtors pick areas “farm” by analysing market, potential, competition and even market. After considering all factors, he reaches out to potential clients through mail campaigns, regular communication with residents and community events.
Types of Real Estate Farming
1. Geographic Farming
This type of farming is when a realtor projects himself in a chosen location to meet potential clients. The goal is to build strong recognition and create brand awareness in the selected commuting so that potential buyers and sellers will think of them once there is a need for real estate transactions.
They select locations based on several factors such as turnover rates, market potential, property values, and familiarity within the community. After fulfilling these factors, they go ahead to create awareness through local sponsorship, mail campaigns, etc.
2. Demographic Farming
Demographic farming, unlike geographical farming, targets a specific set of people based on their age, occupation, family status or income level. This means that a realtor may decide to focus on, luxurious home seekers, retirees or young professionals and then tailor their strategy to suit the needs of the chosen demographics.
By understanding the needs of the demographic and tailoring their strategy to suit their needs, they tend to build trust within these demographics. Once trust and a good working relationship are built amongst these people, the realtor is at an advantage in referrals, and reaching more clients.
3. Psychographic Farming
When operating psychographic farming, realtors focus on going beyond location and demographic, they focus on the attitude, lifestyle, interests, and values of the target audience. For a realtor to be successful, psychographic farming involves a deep understanding of the target audience, their preference and behaviour.
This will enable the realtor to create strategies that best suit their needs on a more personal level. For instance, if the target is environmentally conscious, the realtor has to get familiar with and push eco-friendly homes to them.
By focusing on the individual choices and interests of clients, a realtor builds a strong connection and differentiate themselves from competitors that are more generic in their approach.
How to Choose the Right Area for Real Estate Farming
1. Understand Your Objectives
First thing first, you need to draw out a plan and create objectives to work with. Start by listing out your goes: do you want to go into residential, commercial or rental properties? Once you make your choice, it will help you streamline your objectives. For example, if your choice is residential, you need to look for a location with a growing population of families and good schools.
This will aid tailored strategy to suit the needs of clients. However, while setting objectives, you need to consider the financial implications. You need to conclude on the budget that will be enough to completely execute your farming. Having a budget will help you narrow down and balance affordability with the potential return and ensure you choose a location that suits your pocket.
2. Research Market Trends
Once you’ve understood your objective, move to researching market trends. Researching market trends opens you to the opportunity of selecting a lucrative area to farm in real estate in Nigeria. Start by analysing the value of properties to understand the current market trends. Areas with growing property value are likely to do better and offer more benefits at the end of the day.
Similarly, you need to study local demand to identify regions with high demand for properties, whether for rental, commercial or buying. More often than not, a location with high demand is often a prime target in real estate farming in Nigeria.
3. Familiarize Yourself With Local Laws
To execute farming seamlessly, you need to get familiar with the local laws of your real estate farm areas. To go about it, research regulations from local authorities or enquire from other realtors who have been in the sector for a long time.
Another way to familiarize yourself with local laws is by attending seminars and joining real estate organizations, you can also read local publications to find out. Some of the laws to look out for include licensing requirements, zoning laws, and property tax regulations. Staying up to date with real estate regulations will ensure you are operating within the purview of the law. It’s a good way to play it safe.
4 Approaches to Real Estate Farming
1. Cold Calling
One way to generate leads for farming is through cold calling. You can reach out to intending clients by approaching them (calling). Sell yourself to them, and list out the things of opportunities you are willing to link them with. However, you equally need to understand their needs as well.
Do your research about a demographic, understand what they need and provide a solution. For instance, you can sell yourself to a family with young kids whose present location has no good schools. Look for a location with what they need and sell it to them. At that dire point of need, they will have no option but to give in if your convincing game is intact.
2. Work with Local Businesses in the Farming Area
Another approach to real estate farming is generating leads by collaborating with local businesses. Collaborating with local businesses is a win-win situation for both you and them. While synergizing with them means they are helping your business, you are equally helping their businesses by indirectly creating awareness through collaboration.
For instance, you can collaborate with a business with both of you cross-promoting each other on social media platforms. You can also offer discounts to all clients who choose to buy from the two brands. For example, they get a discount on interior decor if they buy a house through you.
By doing this, you gradually establish your presence in that area.
3. Attend Neighborhood Event
If you’ve picked out an area to work with, one way to familiarize yourself with the locality and gain clients is by attending events held in the neighbourhood. By attending these events, you get to network and sell yourself to them.
While attending these events, ensure you go there with your business cards. Once you spot a potential client, hand them your business card. You might even get to share ideas and get leads from someone who is a resident of the area, which will be helpful in your endeavour.
4. Create a Facebook Market or Community
The world is now a global village and you can use that to your advantage in your farm area. Create a Facebook group where you can connect with potential buyers and sellers and create awareness about your profession.
To keep members coming and committed, share evidence of homes you’ve sold, give market updates, share market listings and so on. The good part is that you get to control what goes on there since you’d be the sole administrator of the group.
Conclusion
Real estate farming in Nigeria is a strategy employed by realtors to reach intending clients and establish their presence in their chosen area. This strategy makes the job of being a realtor easier.
To make connecting with prospective clients easier LR joins the top 50 real estate rate companies in Nigeria amongst Sonji motors and 2 more big names. By leveraging the opportunities they offer, you get better chances of being better at your trade.
