Geo Farming – How To Create The Perfect Real Estate Farm

What is Real Estate Farming?

Geographic farming, or geo farming, is a powerful real estate marketing strategy where you, as an agent, consistently market to a specific neighborhood or area.

We typically market to two distinct groups:

• our warm contacts, often referred to as our sphere of influence,
• and our cold prospects, which we categorize as our farm

More often than not, this farm is defined by geography.

The goal?

To establish yourself as the go-to real estate expert in that community.

When done right, this approach enhances brand recognition, increases listings, drives higher sales, and earns valuable referrals.

Why Geo Farming is Essential for Real Estate Success

Geo farming lets you focus on a specific neighborhood, allowing you to become the local expert without trying to do too much at once.

One major advantage of geo farming is that it helps you build a recognizable brand within the community.

When you consistently engage with the same area, you create multiple connections with potential clients.

Geographic farming allows you to allocate your marketing budget more effectively.

Instead of spending on broad campaigns that may not reach your target audience, you can focus on strategies that directly impact your chosen area.

This approach often leads to a better return on investment (ROI) because you are engaging with a more receptive audience.

How to Select the Right Area for Geo Farming

Choosing the right area for your real estate geographic farming is a critical step that will significantly influence your success.

Here’s a detailed guide on how to identify and select the ideal neighborhood for your geo farming efforts:

1. Define the Turnover Rate of Your Area

Real estate turnover rate tells you how many homes are selling in an area.

A high turnover rate suggests that there are home owners actively selling their homes, and buyers interested in the area.

We can calculate the turnover rate by dividing the number of homes sold in the past year by the total number of homes in that area. At Wise Pelican we use the average from the last 3 years to get a better picture.

How to find the data:

You can get this data through your local MLS. Download the number of homes sold and total homes in the area you’re interested in. For suburban areas, use subdivisions; in rural areas, you may need to use zip codes or draw custom boundaries.

Calculating Turnover Rate:

Use two years of data for accuracy. Here’s how:

1. Average homes sold per year: (Total homes sold in 2 years ÷ 2)
2. Turnover rate: (Average homes sold per year ÷ Total homes in area) x 100

Example:

• Neighborhood: 500 homes
• Homes sold over 2 years: 60
• Average homes sold per year: 60 ÷ 2 = 30
• Turnover rate: (30 ÷ 500) x 100 = 6%

A 6% turnover rate is solid, but areas with 10% or higher are ideal for real estate farming, as they offer quicker results.

Wise Pelican offers an advanced mailing list builder that will automatically calculate the turnover rate of the area you want to farm. If you like what you see, simply add all the available address’s to your mailing list.

Try Our Mailing List for Free

2. Assess the Real Estate Agent Saturation Rate

The agent saturation rate helps you see if one agent is dominating an area.It’s a useful indicator that helps us understand how competitive an area may be.

It’s calculated by comparing the number of homes sold by the top agent to the total homes sold in the area over the last 12 months.

An agent saturation rate below 10% is generally good. A rate of 5% or lower means there’s less competition, offering you more opportunity to stand out.

How to find the data:

You can get this data through your local MLS. Download the number of homes sold and identify the agent with the most sales in the area over the past 12 months.

Calculating Agent Saturation Rate:

Top agent sales ÷ Total homes sold in the area x 100

Example:

• Homes sold in the past year: 40
• Homes sold by the top agent: 4
• Agent Saturation Rate: (4 ÷ 40) x 100 = 10%

A 10% agent saturation rate means the top agent handled 10% of the sales. Lower rates (5% or less) suggest less competition, making it easier for you to establish a presence in the area.

3. Evaluate the Time on Market

Time on market is often overlooked, especially by new agents targeting high-priced homes that take longer to sell.

Knowing the average time on market helps you set realistic expectations for your listings—quick sales bring faster results, while longer cycles require patience.

Consider the following when looking at time on market: 

1. Faster sales usually indicate strong demand in the area, which means quicker results and more satisfied clients.
2. Slower sales can suggest either a less attractive area or the need for better marketing efforts.

Remember, you only get paid when a home sells, so moving properties quickly is key to maintaining a steady flow of business.

4. Leverage Your Connection to the Area

Your personal connection to an area can play a significant role in your success when farming for real estate.

Consider some of the following:

• Close proximity: Choosing an area near your home makes it easier to attend open houses, meet clients, and stay involved in the community.
• Familiarity: If you’ve worked in the area before, your experience gives you an edge in understanding market trends and building trust with potential clients.
• Local expertise: Deep knowledge of local schools, amenities, and community dynamics allows you to better serve clients and position yourself as a local expert.

The better you know the area, the better you can serve homeowners. 

How to Create a Real Estate Farming Plan

Now that you’ve identified the ideal farming area, it’s time to develop a real estate farming plan that will turn your farm into business opportunities

With a solid strategy in place, you’ll be ready to generate leads and build long-lasting relationships with homeowners in your area.

A well-crafted plan will outline your marketing strategies, budget, and goals, giving you a clear path to success as you establish yourself in the community.

Develop a Marketing Strategy for Your Farm

When building a marketing plan for your geo farm, it’s essential to mix up your methods to reach your audience effectively.

Some approaches will work better than others, depending on the neighborhood and the type of homes.

Here’s how you can get started (change it to fit your needs):

Start with direct mail.

People still love receiving physical mail—it feels more personal and often sticks around longer than a digital ad.

Whether it’s a postcard or a market update, it’s something they can keep and refer back to.

Combine this with digital marketing.

Running social media ads or email campaigns to the same area you’re mailing can boost your reach.

It keeps you top of mind, both online and offline.

If you’re comfortable, door-knocking or attending community events is a great way to build face-to-face relationships. Though it takes more effort, it can really make you stand out.

Set a Realistic Budget and Stick to It

Your budget keeps your farming efforts running long-term. It should cover everything—mail costs, digital ads, and any other outreach efforts.

Real estate farming is a long game. Results take time, so plan for 6 to 12 months of steady marketing.

Consistency is key.

When setting your budget, factor in all expenses—from direct mail to digital platforms. Don’t forget the small stuff like event sponsorships or printing materials. And keep your budget flexible.

If you notice one strategy works better than others, be ready to shift your spending to what’s driving results.

Measure the Success of Your Real Estate Farming Efforts

You can’t improve what you don’t measure.

Keep track of how well your marketing efforts are working by focusing on:

• Leads generated
• Listings secured
• Client enquiries
• Homes sold

Use unique phone numbers or landing pages for each campaign to see where your leads are coming from.

Keep an eye on what’s working and adjust as needed.

Consistency is the name of the game. Geo farming takes time, but by staying consistent, measuring your results, and tweaking your strategy, you’ll start seeing returns.

Get Started With These 5 Real Estate Farming Ideas

Here are a few effective real estate farming ideas to help you make become the go to agent:

1. Share social media posts: Post regularly on platforms like Facebook, Instagram, and LinkedIn about real estate tips for buyers and sellers, local listings, and lifestyle insights.
2. Run digital ads: Consider using Google Ads or Facebook & Instagram Ads to reach local customers.
3. Send monthly newsletters with local updates: Keep in touch with leads and clients with regular newsletters featuring local updates and real estate information.
4. Utilize direct mail to stay top of mind: Send personalized postcards or brochures to residents in the community offering your services or sharing local market insights.
5. Join and partake in online/offline communities in your area: Build an online community for local residents or a page dedicated to the neighborhood. It is important to stay in compliance with Facebook Pages and Groups.

The Bottom Line

Geo farming requires consistent effort and smart decisions.

Once you’ve selected the right neighborhood, it’s all about using the best marketing strategies that suit your area. 

You might focus on direct mail, digital ads, or a mix of both. 

The key is to stay focused and persistent. 

Over time, your efforts will pay off.