PropertyRadar Blog

Your Guide to Circle Farming

Written by Karina Mazhukhina | Sep 24, 2024 2:51:11 PM

When it comes to ramping up your seller leads, are you endlessly pouring money into social media ads, hoping the algorithm will somehow work its magic? 

Or maybe you’re sinking more cash into Zillow, hoping that one super-expensive lead will finally come through…

Let’s be real: throwing more cash at the same tactics that you've always done and expecting different results is simply not going to work.

But... what if there was a radically smarter approach that let you focus on potential sellers who are practically hiding in plain sight, right in your own neighborhood? 

A strategy that doesn’t rely on chance but on data-driven insights that pinpoint who’s most likely to sell.

That’s where Circle Farming comes in.

At its core, Circle Farming focuses on reaching out to the neighbors of properties you’ve recently listed to generate new seller leads. 

And yes, we get it. 

You’re probably thinking, “How does focusing on a specific area around a single property bring in more sellers?” 

At first glance, it seems like a stretch. But stick with us. 

In today’s ultra-competitive market — where winning over sellers is more critical than ever, especially in the wake of the NAR ruling — Circle Farming is a lead generation deep cut: often overlooked but extremely powerful when done correctly.

By the time you finish this blog, not only will you know what Circle Farming is, but you’ll be equipped to start implementing it into your lead gen efforts right away.  

In this comprehensive guide we’ll cover:

Understanding Circle Farming

Let’s begin with a scenario: you just sold a house on one of the most popular streets in an up-and-coming part of town, and all the neighbors are talking about it… 

They start thinking, “If that house can sell, maybe mine can too.” 

Usually, when neighbors start chatting amongst themselves, it’s almost never about anything good… 

Gossiping, trying to get into other people’s businesses, etc. All the “neighborly” things.

However, when a house in a neighborhood ends up selling, it’s great news for you as a realtor, especially if you’re the one who sold it. 

Why?

When a home either goes on the market or sells, it’s statistically proven that it’s significantly more likely that other homes in the same neighborhood (even on the same street) will go on the market shortly after.

Human psychology at its finest.

So, if you’re a realtor, how can you parlay one listing or just sold property into more leads?

This is where Circle Farming comes in. You’re not just reacting to market changes — you’re getting ahead of them, and, oftentimes, creating them yourself. 

How Circle Farming Works

Think of it like this: the "circle" represents the specific neighborhood or area you focus on. It's like drawing a circle around a targeted location where you've just recently sold a property.

"Farming" refers to the consistent, ongoing effort you put into engaging with people in that area, much like tending to a field to grow crops. 

Together, Circle Farming means concentrating your efforts on a particular community; and, in this case, anchoring your outreach around the property in their neighborhood you just sold. 

By focusing on the area around recently listed or sold properties, you tap into a natural curiosity from homeowners who are now contemplating their own next move. 

Neighbors love hearing about homes that just sold, how much they sold for, how long they were on the market, etc. 

Circle Farming is a Much Better Tactic Than Calling FSBOs

Calling For Sale By Owners (FSBOs)? As Tony Soprano once famously said, “Forget about it!" 

Now read that again, but this time with an Italian accent for full effect. 

In all seriousness, Circle Farming is where the real magic happens. 

It isn’t just another tactic — it’s a smart way to build real relationships with homeowners in your neighborhood.

When you talk to your neighbors, you’re more than just a voice on the phone. You’re a trusted friend who has sold a home in their area, showing that you really care about the community.

This creates a buzz that gets people talking and sharing their real estate needs. You’ll find opportunities to help them sell their homes that you wouldn’t discover through random calls.

Now get out there, connect, and watch your network grow. 

Which Leads Should I Focus on for Circle Farming?

By now, you may be wondering, ‘Which leads should I focus on?’ That’s a very good question, and thankfully, we have the answers.

A few to try on for size:

Just Listed 

If you've just put a property on the market nearby, reach out to surrounding homes to let them know about the new listing. 

Mention that the neighbors are moving out and express your interest in any referral buyers they might have. 

Homeowners will likely appreciate the heads-up and could suggest potential buyers who want to live closer. 

This approach can bring you closer to a sale and potentially gain future clients when these neighbors are ready to move.

Just Sold 

After selling a property, use that success as a strong conversation starter with nearby residents. 

Make it a point to inform them about the recent sale and share valuable insights about the local market and the value of their homes. 

This approach is crucial for establishing yourself as a knowledgeable expert in the area and attracting new clients who trust your expertise. 

After all, this is the bread and butter of circle farming.

Open House 

If you have a property listed with an upcoming open house, notify all the neighbors on the same block. Let them know the open house schedule and any potential increase in traffic or noise. 

Provide your contact information so they can reach out if they encounter any issues, like blocked driveways. 

This not only shows that you’re considerate and helpful but also highlights that you’re actively engaged in the market.

Applying Circle Farming Through Door Knocking

Circle Farming, like most other forms of lead generation, can be implemented through a number of different channels.

While direct mail postcards and email marketing are popular choices, let’s look at another effective method: door-knocking.

Don’t limit yourself to just one client or property. Instead, extend your efforts across multiple homes in the area. 

This way, you’ll reach more people and make a powerful impact that’s impossible to ignore.

For instance, if you’ve just listed or sold a property nearby, use this opportunity during your door-to-door visits. 

Share updates about the neighborhood and provide insights into recent market activity. Make a point to even talk about the home you just sold and how smoothly the process went.

If you’re not finding immediate leads, consider reaching out to owners of off-market properties

Let them know about the recent market activity and that you have interested buyers who might be looking for a home like theirs, whether they’re ready to sell now or later.

The Role of Circle Farming in Lead Generation

To make your Circle Farming efforts more targeted, use PropertyRadar to identify specific neighborhoods and compile customized lists of properties.

Even better? PropertyRadar’s Outbound Playbook offers practical insights for refining your Circle Farming approach.

Here are some things you can do right away:

Explore the Area

Walk through the neighborhoods you’re targeting and get a feel for the community. As you do, keep an eye out for off-market properties that might be a fit for your clients. 

Use the PropertyRadar app to gather detailed information and make your outreach more relevant. For instance, you might come across homeowners who have been in their homes for years and might be considering a move.

Use PropertyRadar to Find Similar Properties To The One You Just Sold

Use PropertyRadar to build a list of homes that are similar in square footage, number of beds/baths, or lot size to the home you just sold, and compile a list of potential properties.

Be proactive in contacting owners of off-market homes — letting them know you have interested buyers could lead to new opportunities.

If an offer falls through, use PropertyRadar’s Neighbors feature (learn how to use it) to reach out to nearby homeowners. 

Check if any are thinking about selling. This method helps you find potential listings in the neighborhood and positions you to secure better deals.

Pro Tip: For properties you’ve listed or are listing, direct your efforts towards nearby homes with customized messaging. 

Postcards are a great tool for this, and we’ll show you how to make the most of them in the next sections.

This approach gives you a powerful launching pad for your outreach, setting the stage for a high-impact, targeted campaign. 

At the end of the day, whether you focus on the same block, school district, or neighborhood, Circle Farming gives you pre-established reasons to connect with potential clients

….and what’s more effective than that? 

Explaining "Why I’m the Best Choice to Represent You"

So you just sold a home in the neighborhood — that’s impressive (especially in today’s climate), but what really sets you apart from the other local agents in your area who’ve also been successfully selling homes?

When sellers are deciding who should represent them, they need to see what makes you truly unique. 

Sure, having a solid roster of buyers is a strong indicator of your credibility and strong local presence, but let's dig deeper. 

​​Your extensive experience in selling properties in the area, combined with a network of motivated buyers, isn't just a benefit — it automatically shoots you to the top of the list in what's otherwise a long line of interchangeable local realtors.

You Can’t Be the Best Choice Without a Solid Selling Strategy

Winning listings doesn’t just happen because you sold a home on the same street a week ago.

You have to make potential sellers feel confident in your strategy to sell their home for the best price, in the shortest time frame possible.

It’s astounding how many realtors still shoot from the hip in their listing presentations, basing their pricing off “feel” and over-exaggerating their buyers lists, luring potential sellers into a false-sense of security.

The way you stand out is by coming up with a solid, detailed selling strategy based on facts, data, and a commitment to taking an analytical approach to move their home as fast as possible for the highest price. 

By providing deep local insight and showcasing your expertise in property values and market trends, you help sellers craft realistic selling strategies and attract an even larger pool of interested buyers.

Need some help? PropertyRadar has your back with detailed, data-driven insights through science-based comparisons

This not only showcases your expertise but also assures clients that your valuation is grounded in solid data, not just guesswork.

What else can make you stand out? Marketing properties across multiple channels.

This means getting the word out through postcards, door-knocking, and email campaigns to ensure you get the right exposure and attract potential buyers.

At the same time, it involves having a deep understanding of the market and using your extensive buyer list to actively find and engage sellers.

Your knack for connecting with both buyers and sellers creates a network so powerful, it's practically unstoppable.

Keep in mind that in Circle Farming, the focus shifts from "diverse" to "similar."

Why? Because Circle Farming is most effective when you highlight your success with homes like theirs in the same neighborhood.

For instance, you could say, ‘I’ve successfully sold several homes in this area, and I’d love to deliver the same great results for your property.’

Creating Value for Everyone Involved

So how can you create value for everyone involved? It's as easy as 1...2…3…

First, you have an intimate understanding of the neighborhood

This isn't just about knowing the streets and homes — it’s about having established long-term relationships with previous clients. 

Your deep connections in the area mean you’re not only familiar with local market trends but also trusted by those who have worked with you before.

A huge part of circle farming is winning new listings by selling your ability to create and maintain long-term, fruitful relationships with past seller clients in the area. 

The potential seller you’re speaking to may even know some of those past-client neighbors of theirs — you couldn’t dream up a better referral than that.

To really succeed, you need to know what these potential sellers want

Every homeowner has a different story — some need a quick sale, others are looking for top dollar, and many have questions they haven’t even thought of yet. 

Understanding their needs is key to positioning yourself as the expert who can solve their problems. 

It’s not about being pushy — it’s about building trust and fostering relationships, just like we emphasize in our Good Neighbor Marketing Pledge.

Ultimately, it’s about being the person who can give them real solutions and make the selling process less overwhelming.

Then, there’s your network. You’ve got more than just potential listings — you’ve got buyers in your back pocket, ready to act. 

This is where Circle Farming makes all the difference. 

You can link up sellers with the eager buyers you’ve been cultivating, lighting a fire under the whole process and making things move faster than anyone expected.

It’s a win-win: sellers feel more confident knowing you have buyers on standby, and you get the satisfaction of pulling off a seamless transaction. What’s not to love? 

It’s about working smarter, not harder, and becoming the go-to agent in your targeted area.

Lastly, your track record in selling properties in this specific area is extensive. 

You’ve handled numerous transactions, which gives you a precise understanding of how to set the right price and effectively market each property. 

Your approach is all about using data and strategy. With your experience, you set the perfect price for each home and create a marketing plan designed to attract serious buyers.

Now that’s something to get behind.

Finding Prospects with PropertyRadar

Remember the Neighbors feature we mentioned earlier for reaching out to nearby homeowners? 

Let’s take a closer look at how to use it: 

  • Lookup the Address: Start by entering the exact address of the property. PropertyRadar will give you a detailed view of the neighborhood.

  • Refine Your Search: Next, go to the “Neighborhood” section. From there, you can narrow down your search to properties on the same street, within the same subdivision, or expand to see a broader range of neighbors.

  • Choose Your Action: With your list in hand, decide your next move. You can either add these properties to your list for future reference or take immediate action, like sending direct mail or starting an email campaign.

  • Save Your List: Don’t forget to name and save your list clearly—something like “Circle – [listing address] – [mmddyy]” — so you can easily find it later.

Implement a Multi-Channel Circle Farming Campaign

Now it’s time to connect with those clients. But how do you do it?

Why, with multi-channel marketing, of course!

Launch your multi-channel Circle Farming campaign by sending out eye-catching postcards to keep your message visible and top-of-mind within the community. 

Next, use email to quickly reach a broad audience with personalized messages. 

After that, follow up with phone calls to deepen the conversation and build meaningful connections. 

Then, start door-knocking to test your message directly and gather immediate feedback from your neighbors. 

Wrap up your campaign with online ads to amplify your reach and extend your message to a wider audience.

For future campaigns, begin with digital channels to refine your strategy, and then complement it with door-knocking, calls, mail, and email to effectively connect with your neighborhood.

Using Postcards to Promote Your Recently Sold Home in the Neighborhood 

Postcards are a simple yet effective way to share news about your recently sold home with your neighbors. 

When you send out postcards, you're not just telling them that the home sold — you’re also showcasing your success as a real estate agent.

First, make sure your postcards look great. 

Use bright, high-quality images of the home and keep the design clean and professional. Include your contact information clearly, so people know how to reach you.

Your message should focus on what made the home special and why it sold quickly. Highlight features that appeal to potential buyers, like a beautiful backyard or a newly renovated kitchen. 

Personalizing the message can help make it feel more relatable.

To tailor your postcards further, consider using tools like PropertyRadar, which can help you understand what buyers are looking for.

Don’t forget to explore resources like the Direct Mail feature page for a variety of templates that can help you create stunning postcards quickly. 

Some effective themes to consider include "Recently Sold," "Just Listed," and "Open House."

Another recommendation? Make sure to send these postcards consistently.

Consistent outreach keeps your name fresh in people’s minds, so they think of you when they consider selling their own homes. 

A good mailing schedule balances keeping in touch without overwhelming them.

Lastly, track how your postcard efforts are working. Pay attention to any responses or inquiries that come from your mailing. 

This way, you can adjust your approach and make your next campaign even more effective.

Budgeting for Circle Farming 

Found a good postcard for your circle farming? It's time to refine your marketing approach and budget.

When working with a limited budget, focus your efforts where they can have the most impact. 

Instead of trying to reach everyone, concentrate on creating lists of homes in your area that are similar to the ones you've recently sold.

For instance, if you have buyers looking for 3-bedroom, 2-bath homes in the $400,000 range, start by identifying properties that match this profile. 

Then, expand your search to include higher and lower price points, such as 2-bedroom homes around $300,000 or 4-bedroom homes priced at $600,000.

Segment your target audience further to tailor your outreach. If you notice a trend where older homeowners are considering downsizing, include properties that might appeal to them.

Once you have your lists, set a realistic marketing budget. 

If you have $250 to spend, tools like the Hyperlocal Lead Generation Calculator can help you estimate how many potential sellers you can target. 

For example, if your budget allows for direct mail to 400 potential sellers, you can send personalized messages that are more likely to grab attention.

Advanced Techniques in Circle Farming

To make a real impact in Circle Farming, it’s all about connecting with homeowners in a genuine way.

Start by building a list of potential sellers, focusing on key details like how long they’ve owned their homes and their age.

For example, if you come across someone who’s been in their house since the 90s, that’s a strong indication they might be considering a change — perhaps downsizing or moving for a new opportunity.

With this information, you can craft messages that truly resonate. 

Similarly, If you find a longtime homeowner nearing retirement, you can suggest that now is a great time to sell, given the current market conditions.

Boost your credibility by mentioning your experience selling homes in the area. You could say something like, “I just helped a seller get a quick sale above the asking price, and I’d love to do the same for others in the neighborhood!”

By understanding homeowners’ unique situations and tailoring your outreach, you can create campaigns that really speak to their needs. 

Boom, it’s that easy! Now get to it.

Want to be a Better Farmer? It Starts with the Right Tech 

Throughout history, the most successful farmers have always used the best tools.

A thousand years ago, the farmer with advanced horse-powered equipment had the edge over those using only hand tools.

A century ago, the farmer who embraced electric tools outperformed those still relying on horses.

The same principle applies to Circle Farming.

The top practitioners in Circle Farming are those equipped with the most advanced technology and tools.

Enter PropertyRadar.

We access a huge amount of public records data, including details on over 150 million properties, 250 million people, and more than 1 billion phone numbers and emails.

This data is neatly organized and easy to use through our desktop and mobile apps.

PropertyRadar tracks your interactions, so you can remember each seller’s interests and how they’ve responded before.

Our powerful analytics and data tools help you spot patterns and trends in what your audience likes and how they act.

For instance, you can see which properties your prospects prefer or how they react to different marketing messages.

Use these insights to refine your strategies and better meet their needs.

In other words, focus on what matters most to your audience, and let us handle the details.

Customize Your Approach for Different Seller Groups

PropertyRadar helps you customize your approach by focusing on the unique needs and preferences of different sellers. 

You can refine your messaging by layering specific property details — like the number of bedrooms, bathrooms, and square footage — with situational data about the property owners.

Note, if you create your lists based only on property features, you’ll be competing for the same leads as everyone else.

Instead, create exclusive lists by targeting sellers looking to downsize, relocate quickly, or upgrade their homes.

For example, you could focus on sellers with 4 bedrooms, 4 bathrooms, over 2,500 sq ft, who are 65+ years old, have lived in their home for more than 20 years, and no longer have kids at home.

This is how you build a truly exclusive list. And if you think someone else in your area is targeting that exact group, chances are, they’re not.

Another good idea? Target Absentee Owners

These are people who own property but don’t live in it, often because they’ve moved away or are investors holding onto rental properties. 

Since they’re not actively using or living in these homes, they might be more willing to sell.

Win More Sellers by Continuously Improving Your Circle Farming Approach

As they say, 'The road to success is paved with persistence.' The same holds true for refining your circle farming strategy.

Key Performance Indicators for Circle Farming

To dominate in Circle Farming, you need to track KPIs that show how well your strategy connects with local sellers. 

Keep an eye on metrics like lead conversion rate to see how effectively you're turning prospects into deals.

And engagement rate to measure how well your marketing is resonating in the community.

Average time on the market is crucial — if homes are selling quickly, you’re doing something right. 

And remember, customer satisfaction is important — it helps you get repeat business and earn referrals from happy clients.

ROI is essential for making sure your marketing budget is being used wisely. It shows if your spending is actually bringing in the results you’re looking for.

Wondering how to keep track of all this and refine your strategy? That’s where PropertyRadar comes in. 

Our powerful tools make it easy to monitor KPIs, spot trends, and adjust your approach. 

Check how you're doing, find out what you can do better, and use local feedback to stay ahead and beat your competitors.

Continuous Improvement in Circle Farming

Improve your circle farming approach by using feedback and results to stay ahead of your competition.

Start by regularly checking how your circle farming efforts are performing. This could include reviewing direct mail campaigns, door-knocking results, or local events. 

Collect feedback from your community, clients, and team to see what’s working and what isn’t.

For example, if a particular outreach method isn’t getting the results you expected, you might need to adjust your approach or change your messaging.

Keep a mindset of continuous improvement by seeing feedback as a chance to get better, not as a setback. 

Focus on specific, actionable items from the feedback that can lead to real improvements. Break down this feedback into manageable goals and make a plan to address them. 

For example, if feedback says your community events aren’t engaging enough, you could make them more interesting with interactive elements or local themes.

Also, stay updated on local market trends and community needs. If there’s a growing interest in eco-friendly homes, consider incorporating these features into your strategy. 

Regularly read local market reports, attend community events, and engage with local experts to stay informed and gain valuable insights.

Looking to step up your circle farming game?

PropertyRadar can help you easily identify and connect with the right people in your local area.

Get a free PropertyRadar trial and unlock the power of 150 million properties to find your next leads today.