Analogy of my Real Estate Marketing Process

I want to give you an analogy of my real estate marketing process.

I think of myself as a Farmer, as a new farmer I want to determine what kind of crop I want to grow. So, I do a little research and talk to the local Farmers markets and ask them, what they pay for each type of produce and when. Now with my crop picked out I have to plan my field, so I look over my farm land and decide which sections are most profitable for me to grow my crop on. I have to consider, the distance I have to take the water and fertilizer, also will it be feasible to me to harvest my crop in that area? Since I am a new Farmer, I want it to be as easy as possible for me to determine when a vegetable is ripe and when it’s over ripe.

So now I have mapped my plan for my field and seeds in hand, I begin to plant, water and fertilize. I know that if I skip any of these three steps, I will not have a crop to harvest. The growing season continues and I find out that I have to continually water and fertilize my crop over and over. But one day my crop matures and I have begun to harvest.

I load up my wagon and back to the Farmers Market I go, I want to let them all know what I have grown, and that it’s ready for them to purchase. I get there and see other Farmers with the same type of crop. How do I convince them to buy my crop instead of these other Farmers?

I could hold out for the best price against the competition, I will probably walk away with a single bushel sold and I will return to the farm with my wagon full and the whole season wasted. Or I could offer the best price while still making profit, I am not coming home poor, I will still make good money when I sell it, and everyone will want to buy from me, because they get the best value.

So how does the Farmer analogy work in Real Estate?

When you research and talk to the local Farmers markets and ask them, what they pay for each type of produce and when. You are researching the Real Estate Market and deciding which buyers you are selling to and what they are looking for. This will help you to determine what type of properties you should be marketing to and what price you need to get them for in order to deliver what they want at a price that they will pay attention to.

Now with my crop picked out I have to plan my field, so I look over my farm land and decide which sections are most profitable for me to grow my crop on. Consider your local area, your field and choose the neighborhoods that have houses that will fit your end buyer’s needs. Does the area you chose have enough sales action for you to be able to determine the value of the homes?

I have to consider, the distance I have to take the water and fertilizer. Are the areas you choose close enough to each other and to one another for you to use your time effectively.

Will it be feasible to me to harvest my crop in that area? Would it be reasonable for you to market these homes? Would it be reasonable to show the house once you have it? Does the reputation of the neighborhood help or hurt your values.

I want it to be as easy as possible for me to determine when a vegetable is ripe and when it’s over ripe. This can be hard, but pay attention to Market changes and Marketing because you do not want to still be invested in an area or marketing strategy that has become over ripe.