Attn Realtors: Is it a good idea to farm an area with low turnover?
I am curious, as I am not an experienced realtor yet...
Almost everyone suggests farming an area with high turn over rate. So I did this in my area, but noticed that a lot of others are doing the same.. Yes I did notice for sale signs in what felt like every other block. But it seemed very competitive. I would see stacks of business cards and door hangers when I went door knocking from many other agents (I was door knocking right before covid, when I just got into real estate)..
So I'm wondering... would it be a good idea to farm an area with low turnover rate? I'd like to farm my neighborhood which has a low turn over rate. I rarely see business cards, door hangers, or any mailers or even door knocking (pre covid). But I also don't see too many for sale signs, only a few through out the area.
Anyway, is there any advice or insight that a fellow realtor may have? I appreciate it in advance, and maybe we can exchange contacts for potential referrals. Thanks! :)
- L. E. GantLv 71 month ago
Real estate people depend on commissions to get paid.
Low turnover rate would suggest that (a) people are not willing to sell in that area, which means you'd get few listings or (b) people are not willing to but in that area, which means that there would be few people willing to list their properties (maybe because the area has high transience, so rentals are good).
While farming such an area will have little or no competition (direct contact level, anyways) from other agencies, it means that the agent is not getting a particularly good income, even if they get ALL the listings and sales in that area. And (based on our experience a few years ago) most such areas have an "old" agent who knows everybody in the area and a large number of the people who are likely to buy in that area, which makes it hard for a new agent to break in.
So, basically, it's not recommended for a newbie to work a low turnover area, at least not until they get a reputation for getting results.
- Anonymous1 month ago
They tell you listings are key to being a successful agent, but when I first started I chose to pursue first time buyers instead. Why? Because they eventually become sellers, and not many other agents were actively pursuing them. Hit the higher priced apartment complexes. They are filled with people who don't understand they can stop wasting their money on rent and own. They just need someone like you to explain it to them.
- realtor.sailorLv 71 month ago
No, it would be a waste of time. Most CMA's do advertising through Facebook. It's inexpensive and produces good returns.