“Just as the farmer carefully selects a fertile tract capable of producing a good crop, so, too, do real estate agents carefully select their fields of endeavor.”
– Joyce L. Caughman, Author of “Real Estate Prospecting: Strategies for Farming Your Markets”
By Realttorney®
Licensed real estate brokers and accredited real estate salespersons in the Philippines are constantly seeking effective strategies to secure real estate listings in a highly competitive market. One such strategy that is used in other countries is real estate farming, otherwise known as geographic farming or simply, “geo-farming“.
According to author Joyce Caughman, “In the real estate industry the term farming means the cultivation of a specific terrain in the same way that one would work a plot of land: tilling, planting, fertilizing, weeding and finally reaping the harvest of listings and sales.” Ms. Caughman further states that farming is the ideal prospecting vehicle for real estate professionals.
Geo-farming is a targeted marketing approach where real estate brokers focus their efforts on a specific geographic area to establish themselves as the go-to expert in that area, with the aim of generating leads, securing listings, and ultimately closing deals. In this article, we will explore the importance of geo-farming for real estate brokers in the Philippines, highlighting its benefits, challenges in adoption, and best practices for successful implementation.
Successful real estate brokers and agents have been farming for years. However, some of them are unaware that they are farming. As far as these professionals are concerned, they are merely aiding or helping the people in their community – no matter how big or small that community is. But, when you think about it, that is the essence of what farming is all about.
In today’s real estate environment, one cannot be passive and wait for opportunities to find you. The new breed of real estate professionals are social media specialists. They know that attracting prospective clients is key to making the sale. But are they making the correct and strategic moves that will make their real estate business efficient?
If you want to be an effective and efficient real estate professional in the 2020s you must learn three important skills: (1) how to use content marketing to leverage your personal brand, lead generation, and customer retention; (2) how to become the real estate savant in your market area; and (3) how to simplify your business life using the latest technologies available today.
Ken Reyhons, the author of the book, Recruiting Sales Associates, says, “It takes a great deal of self-discipline to be successful in real estate – to establish a plan of action, and then follow it to successful completion.” Real estate farming as a strategy to generate leads works because of the cumulative effects of persistence and consistency. It requires an investment of time before you can reap the benefits.
Real estate farming or geo-farming is simply a systematic way of prospecting. Caughman says, “Prospecting is the key to success in any type of selling. When you farm, you concentrate on your efforts on a specific spot… The farming process ensures the confidence of all who come in contact with the farmer – confidence in their expertise and their concern for the welfare of others.”
Geo-farming can be a game-changer for real estate brokers in the Philippines for several key reasons:
1. Establishing Expertise and Building Credibility. By focusing on a specific geographic area, the real estate professional can position themselves as experts in that area. Consistent marketing efforts, including targeted advertising, community involvement, and market updates, can help establish credibility and trust among potential clients. As brokers and salespersons become known as local area experts, they can build a solid reputation and a strong referral network, which can be a significant source of business.
2. Generating High-Quality Leads. Geo-farming allows real estate professionals to target their marketing efforts to a specific audience – the residents and property owners within the chosen geographic area. This targeted approach can yield higher-quality leads as the broker becomes familiar with the local market and its nuances. By focusing on a specific area, brokers can also tailor their marketing messages and content to resonate with the local community, leading to more meaningful engagement and better lead conversion rates.
3. Maximizing Marketing Efforts and Budget. Rather than spreading marketing efforts thinly across a wide area, geo-farming enables real estate brokers to concentrate their resources in a smaller, well-defined geographic area. This focused approach can help brokers maximize their marketing efforts and budget, as they can optimize their strategies based on the specific needs and preferences of the local market. This can result in more cost-effective marketing campaigns and better return on investment (ROI).
4. Building Long-Term Relationships. Geo-farming is not just about short-term gains; it is also about building long-term relationships with the local community. By consistently providing value to the residents and property owners in the targeted area, real estate brokers can foster lasting relationships that can lead to repeat business, referrals, and a solid client base. Building a strong presence in a specific area can also create a sense of loyalty in the community, leading to increased brand recognition and awareness.
However, while geo-farming can be a highly effective strategy for securing real estate listings by real estate brokers in the Philippines, there are also challenges that need to be considered and addressed for successful adoption by many real estate professionals.
First is Market Saturation and Competition. In highly competitive real estate markets, especially in urban areas, the chosen geographic area for geo-farming may already be saturated with established real estate brokers and agencies. This can make it challenging for new brokers to break into the market and establish their presence. Overcoming this challenge may require innovative marketing approaches, unique value propositions, and differentiation strategies to stand out from the competition.
The second is Limited Local Market Knowledge. Geo-farming requires in-depth knowledge of the local market, including property values, trends, demographics, and regulations. For brokers who are not familiar with the chosen geographic area, building this knowledge can be time-consuming and may require significant effort in research, networking, and relationship building. Real estate brokers need to invest in gaining local market intelligence and understanding the specific needs and preferences of the local community to effectively tailor their marketing efforts.
Third is Consistency and Persistence. Geo-farming is a long-term strategy that requires consistent and persistent efforts over time. It may take months or even years of consistent marketing and engagement to establish a solid presence and build credibility in the chosen geographic area. Real estate brokers need to be patient and committed to their geo-farming efforts, as results may not be immediate. It requires consistent branding, messaging, and outreach to stay top of mind among potential clients in the area.
Fourth is Resource Allocation. Geo-farming requires dedicated resources, including time, effort, and budget. Real estate brokers need to allocate their resources strategically to effectively implement their geo-farming strategy. This may include investment in targeted advertising, content creation, community involvement, and relationship-building activities. Real estate brokers need to carefully plan and allocate their resources to ensure they can sustain their geo-farming efforts over the long term.
Finally, Compliance with Regulations. Real estate professionals need to be mindful of the regulatory environment or specific regulatory challenges on both the macro and micro levels when implementing a geo-farming strategy. These challenges can include the following:
a) Real Estate Service Act (RESA) Compliance: Republic Act No. 9646, also known as RESA, regulates the practice of real estate service in the Philippines. Real estate brokers are required to be licensed and registered with the Professional Regulatory Board for Real Estate Service (PRBRES) under the Professional Regulation Commission (PRC) to legally practice real estate brokerage. Real estate professionals need to ensure that their geo-farming activities comply with the RESA provisions, including proper licensing, registration, and adherence to the Code of Ethics and Responsibilities for Real Estate Service Practitioners. Geo-farming activities need to adhere to these ethical standards, including honesty, integrity, professionalism, and fair dealing with clients and fellow real estate professionals.
b) Zoning and Land Use Regulations: Local government units (LGUs) in the Philippines have their own zoning and land use regulations, which may affect the type of marketing and advertising activities that real estate brokers can conduct in a specific geographic area. For example, some areas may have restrictions on signage placement or size, which may impact the visibility of geo-farming efforts. Real estate professionals need to be aware of and comply with the zoning and land use regulations in their chosen geographic area to avoid potential legal and regulatory issues.
3. Data Privacy Regulations: The Philippines has strict data privacy regulations under the Data Privacy Act (DPA) of 2012, which govern the collection, use, and disclosure of personal data. Real estate brokers need to ensure that their geo-farming activities comply with the DPA, especially when collecting and using the personal data of potential clients for marketing purposes. This includes obtaining consent for data collection and use, ensuring data security, and providing options for data subjects to opt out of marketing communications.
4. Advertising Regulations: The Philippines has specific regulations on advertising for real estate development projects, including the requirement to indicate the real estate broker’s name, license number, and contact details in their marketing materials. Geo-farming activities, such as flyers, postcards, or online ads, need to comply with these advertising regulations to avoid potential penalties or legal issues.
5. Compliance with Local and National Regulations on Real Estate Project Selling: In addition to the above regulatory challenges, real estate brokers need to comply with other local laws and the rules and regulations of the Department of Human Settlements and Urban Development (DHSUD) that may impact their geo-farming activities. These can include local business permits, taxation, project selling regulations, and other relevant laws and regulations at the local and national levels.
It’s essential for real estate brokers in the Philippines to be aware of and comply with these regulatory challenges when implementing a geo-farming strategy. Failure to comply with these regulations can result in penalties, legal issues, and reputational damage. Real estate brokers should seek professional legal advice and stay updated with the latest regulatory developments to ensure their geo-farming activities are compliant with the applicable laws and regulations.
Finally, to overcome the challenges and ensure a successful implementation of a geo-farming strategy, real estate brokers can follow these best practices of real estate professionals in other countries:
1. Choose the Right Geographic Area. The success of a geo-farming strategy depends on choosing the right geographic area. Real estate professionals need to conduct thorough research and analysis to identify areas with growth potential, high demand, and limited competition. Factors such as property values, trends, demographics, and accessibility should be considered while selecting the target area.
2. Invest in Local Market Knowledge. Real estate professionals need to invest time and effort in gaining in-depth knowledge of the local market. This may include researching property values, analyzing market trends, understanding the demographics, and networking with local stakeholders. This knowledge will help real estate professionals tailor their marketing efforts, messaging, and services to resonate with the local community.
3. Develop a Unique Value Proposition. To stand out from the competition, real estate professionals need to develop a unique value proposition for their geo-farming efforts. This may include offering specialized services, unique marketing approaches, or exclusive insights about the local market. A compelling value proposition will differentiate brokers from other competitors and position them as the go-to experts in the chosen geographic area.
4. Create Consistent Branding and Messaging. Consistent branding and messaging are crucial for successful geo-farming. Brokers need to create a consistent brand identity, including logos, colors, and taglines, that resonates with the local community. They should also develop consistent messaging that highlights their expertise, unique value proposition, and commitment to the local area.
5. Build Relationships and Engage with the Local Community. Building relationships and engaging with the local community are key to successful geo-farming. Real estate professionals should participate in local events, sponsor community initiatives, and engage in local networking groups to build relationships with residents, property owners, and other stakeholders. This will help brokers establish credibility, gain trust, and foster long-term relationships with potential clients in the area.
6. Implement Multi-Channel Marketing Campaigns. Real estate professionals should implement multi-channel marketing campaigns to effectively reach potential clients in the chosen geographic area. This may include a combination of digital marketing, such as social media, email marketing, and online advertising, as well as traditional marketing, such as direct mail, print ads, and local publications. A multi-channel approach will ensure maximum visibility and reach among the local audience.
7. Be Consistent and Persistent. Geo-farming is a long-term strategy that requires consistency and persistence. Real estate professionals need to be committed to their efforts and consistently implement their marketing strategies over time. This may require consistent branding, messaging, and outreach to stay top of mind among potential clients in the chosen geographic area. Real estate professionals should regularly evaluate their marketing efforts, track their results, and make necessary adjustments to optimize their geo-farming strategy.
In conclusion, geo-farming is a powerful marketing strategy for real estate brokers in the Philippines to secure real estate listings and build a strong presence in a specific geographic area. By targeting a specific neighborhood or community, real estate brokers can establish themselves as local experts, build trust, and gain credibility among potential clients. However, geo-farming also comes with its challenges, including competition, consistency, resource allocation, compliance with regulations, and the need for a unique value proposition.
Despite these challenges, real estate professionals can overcome them by following best practices such as choosing the right geographic area, investing in local market knowledge, developing a unique value proposition, creating consistent branding and messaging, building relationships and engaging with the local community, implementing multi-channel marketing campaigns, and being consistent and persistent in their efforts.
In today’s highly competitive real estate market, having a strategic and effective marketing plan is essential for success. Geo-farming offers a targeted and focused approach for real estate brokers in the Philippines to establish their presence, increased visibility, higher brand awareness, a strong referral network, gain trust, and generate more real estate listings and closed transactions in a specific geographic area.
Yet, it’s important to note that geo-farming is a long-term strategy that requires patience, consistency, and dedication. Real estate brokers need to invest time, effort, and resources to establish their presence and build relationships with potential clients in their chosen geographic area to grow their business in the ever-changing and dynamic real estate industry in the Philippines.
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Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is a Chartered Trust and Estate Planning (CTEP®) professional who is committed to educating Filipinos about the value and importance of having an estate plan in their lives.
Realttorney® 