Now that you’ve solidified your position as a go-to local agent, what’s next? A natural career progression might include expanding into neighboring areas and feeder markets. Here’s how to do it successfully.
So, as you seek to extend into neighboring territories and gain access to feeder markets, it’s important to do so with a well-thought-out strategy. Here are three tips to help you tap into your feeder markets’ potential.
1. Analyze the movement in your market
A feeder market is typically used to describe a market of origin for new clients. I’ve been working in the Los Angeles market for many years, and this city attracts a range of feeder markets, each with its own agenda and interest in the region.
Our feeder markets are plentiful, both on the global and domestic fronts, and appeal for a number of reasons, including opportunity, investment potential and lifestyle. In today’s fast-paced environment, determining the locations your buyers are moving from is a significant differentiator in the success of your business.
Identify the top feeder markets for the regions you serve as well as any unique buyer and seller movement you’ve experienced over the past year. Once you’ve narrowed these down, the next step is to strategically map out a timeline and proactive plan to benefit from their potential.
2. Partnering with like-minded experts
Identify partners who have a deep understanding of the market and thorough knowledge of the properties in your select feeder regions. By building a strong partner network, you’ll build out a platform of solid, trusted relationships, and you’ll benefit from the cross-marketing of each other’s listings.
For example, at The Agency, our growth strategy is based on a desire to naturally foster our already collaborative culture into our targeted 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 providing them with access to The Agency’s branding and cutting-edge toolbox, we can provide a truly global reach for our agents and their clients in our existing markets.
The Agency has 13 prosperous franchises nationally and internationally, and the key to our growth in 2021 is all centered around partnering up with the right professionals in our selected markets. A strong partnership is key when it comes to gaining a presence in feeder markets.
3. Stay up to date on market reports
At The Agency, in addition to strategically expanding further into our feeder markets, we also evaluate the movement of capital and wealth based on socioeconomic factors. From tax regulations to statewide policies, we continue to monitor the movement in and between all our strategic markets.
It’s important to review detailed real estate reports and surveys about the condition of each market. Reading these reports regularly will allow for a deeper understanding of the overall real estate economy and what is driving movement in each region.
Recognizing the importance of data, we recently released our 2020 Red Paper, which is an extensive report comprising the latest data, research and insights on real estate market performance throughout the U.S., Canada, Mexico and the Caribbean in 2020. This report reveals dramatic shifts in homebuying trends and buyer demographics.
For example, as the report mentions, about “1,000 people each day made the move to Florida” in 2020, and The Agency team recorded a 193 percent growth in sales volume year over year. The report also serves as a guide to what we can anticipate in the year ahead.
COVID-19 has led to a period of unprecedented movement in real estate markets across the country. As a real estate professional, continue to take a look at data and buyer demographics to compare market results and make informed decisions as you tap into new and existing feeder markets.