What happens after you’ve cemented your position as a local agent? Natural career advancement could include expansion into neighboring territories and feeder markets. Here’s how to do it successfully.
After establishing yourself as the top real estate agent in your local market, it is only natural to broaden your horizons and gain market share in the feeder markets.
So, if you want to venture into neighboring areas and gain access to feeder markets, it is important to do so with a well thought out strategy. Here are three tips to help you get the most out of your feeder markets.
1. Analyze the movement in your market
A feeder market is usually used to describe an origin market for new customers. I’ve worked in the Los Angeles market for many years and this city attracts a number of feeder markets, each with their own agenda and interest in the area.
Our feeder markets are abundant at both global and national levels and appeal for a number of reasons including opportunity, investment potential, and lifestyle. In today’s fast-paced environment, determining where your buyers are moving is a key differentiator in the success of your business.
Identify the top feeder markets for the regions you operate in, as well as any unique buyer and seller movements that you have seen over the past year. Once you’ve narrowed these down, the next step is to strategize a timeline and proactive plan to capitalize on their potential.
2. Partnership with like-minded experts
Identify partners who have a deep understanding of the market and in-depth knowledge of the properties in your selected feeder regions. By building a strong partner network, you build a platform for solid, trustworthy relationships and benefit from the cross-marketing of mutual offers.
For example, our growth strategy at The Agency is based on a desire to naturally nurture our already collaborative culture in our target feeder markets such as Aspen, Los Cabos, Park City, South Florida, and Arizona to name a few.
We believe that by partnering with the best of the best in each local market and having access to the agency’s brands and latest toolbox, we can offer our agents and their clients in our existing markets a truly global reach.
The agency has 13 successful franchise companies in Germany and abroad. The key to our growth in 2021 lies in working with the right professionals in our selected markets. A strong partnership is the key to being present in feeder markets.
3. Stay up to date with market reports
At The Agency, we not only continue to strategically expand into our feeder markets, we also evaluate the movement of capital and wealth based on socio-economic factors. From tax regulations to statewide policies, we continue to oversee movement in and between all of our strategic markets.
It is important to review detailed property reports and surveys on the condition of each market. Regular reading of these reports enables a deeper understanding of the entire real estate industry and the drive movements in the individual regions.
Recognizing the importance of data, we recently released our Red Paper 2020, which is a comprehensive report that includes the latest data, research and insights into real estate market performance in the US, Canada, Mexico and the Caribbean in 2020. This report shows dramatic shifts in home buying trends and buyer demographics.
For example, as noted in the report, about 1,000 people were moving to Florida a day in 2020, and the agency team saw revenue grow 193 percent year over year. The report also serves as a guide to what we can expect in the coming year.
COVID-19 has resulted in a time of unprecedented movements in real estate markets across the country. As a real estate professional, keep looking at buyer data and demographics to compare market results and make informed decisions as you enter new and existing feeder markets.
Mauricio Umansky is the founder and CEO of the Los Angeles agency. Connect with him on Instagram.