First . . . you pick a farm area. Find an area of 500 homes that have had around a 10% turnover in the last year. That is a potential of 50 listings in the coming year. Find out from your MLS if any one Realtor has listed more than a third of the homes. If that is the case, find a new area. In most instances you will see one or two homes being sold by any one agent. That means you can work this area and take over as the agent that most people will turn to to list their home.
Next . . .
You order 500 postcards per month to be sent to the farm area. That will cost you $ .80 each. A $ 400 investment per month. $ 4,800 per year. You should see a 30X return on that investment. This doesn’t happen overnight. Any good marketing program takes time. This program takes about 3 years to get there. The first year you should see one or two listings. The second year that number will jump to around four or six. and the third year is when you will see it start to really happen. You should see 16 to 24 listings.
Your gross commission on a $320,000 house @ 3% Commission will be $9,600. If you spend $4,800 per year for two years, you will have spent $9,600. So if you only sold one house in the first year, the commission will pay for the program for the first two years. If you List 16 homes at an average of $300,000 and are paid a 3% Commission you would earn $144,000 per year. If you receive 30X your your investment back, 30 times $4,800 is $144,000.
Bottom Line . . .
You will be doing quite well and want to increase your farm to 1000 very soon. We work with around a 1000 agents that do just that and our average agent has been with us now for 10 and 1/2 years! They stay with us because it works!