A farm is a multi-year bet
Farming means marketing to the same homes again and again until owners think of you when they sell. It costs the same every month and pays back slowly, so the question is when, and whether, it turns a profit.
What goes in
- Homes and turnover set how many sales happen in the farm each year.
- Price, commission and split set what one closing pays you.
- Mailings and cost per piece set the yearly cost. Every Door Direct Mail runs roughly $0.36 to $0.61 a piece if you print the cards and drop them off yourself. A full-service vendor or addressed mail costs more.
- Your share of the farm’s sales is the assumption that decides everything.
About the share you’ll win
The defaults (2% in year one, 5% in year two, 8% from year three) are placeholders, not predictions. Farming guides commonly say to expect little in the first 6 to 12 months. Try a pessimistic set and an optimistic one, and see whether the farm still makes sense at the low end.
What it leaves out
The projection counts one side per closing and none of your time. A seller you win may also buy through you, and neighbors refer neighbors, so a farm that works can beat these numbers. Find real turnover figures with the farm area finder, and see real estate farming: how it works and what it costs.
Questions agents ask
How long does it take for a real estate farm to pay off?
Farming guides commonly say 6 to 12 months before the first results and longer to break even. It depends on turnover, price and how consistently you mail.
How much does it cost to farm 500 homes?
At 12 mailings a year and $0.60 a piece, 500 homes cost about $3,600 a year. Addressed mail, events and other touches add to that.
What market share should I expect in my farm?
There is no reliable benchmark. Plan on a small share in the first year and test what the farm looks like if your share stays low.