Before you spend a dollar on postcards or a minute door knocking, you need to know the numbers. Research is what separates strategic farming from throwing darts in the dark.
📊 What You Need to Know Before Starting
Average Home Price
What's the typical sale price? This determines your potential commission per deal. Higher prices = fewer deals needed to hit your income goals.
Types of Homes
Detached? Semi-detached? Townhomes? Condos? A mixed neighbourhood has different marketing needs than a uniform subdivision.
Who's Moving In?
Young families? Investors? Downsizers? Knowing the buyer profile helps you tailor your messaging and content.
Who's Moving Out?
Empty nesters? Growing families who need more space? Landlords selling? Understanding seller motivation helps you approach them with the right message.
Average Days on Market
How quickly do homes sell? A fast market means urgency — a slower one means sellers need more convincing and better marketing.
Number of Homes
How many total residential units are in your target area? This determines your budget, mailing costs, and scope.
How to Calculate Turnover Rate
Turnover rate is the single most important number in farming. It tells you what percentage of homes in the area sell each year — which directly indicates how many potential listings exist.
The Turnover Formula
(Homes Sold ÷ Total Homes) × 100 = Turnover Rate
Example:
Your target area has 600 homes. In the past 12 months, 42 homes sold.
42 ÷ 600 × 100 = 7% turnover rate
That means approximately 42 listing opportunities per year in this area.
What's a Good Turnover Rate?
Low
Established neighbourhoods with long-term residents. Fewer opportunities, but often higher home values. You'll need to supplement with other lead sources.
Average
Solid farming territory. Enough transactions to build a sustainable pipeline with consistent effort.
High
Active markets with lots of movement. Great farming potential, but may also attract more agent competition.
Very High
Investor-heavy or transitional areas. Lots of opportunity, but relationships may be shorter-term.
🔍 How to Get the Data
Your MLS
Run a search for all sales in the area over the past 12 months. This is your primary data source.
GeoWarehouse / Title Search
For detailed ownership and transaction history in Ontario and across Canada.
Municipal Assessment Data
Property assessment records can reveal ownership changes and property details.
Your Brokerage Tools
Many brokerages provide market analytics tools that can generate neighbourhood-level reports.
Drive the Area
Count for-sale signs, note new construction, observe renovation activity. The ground truth matters.
📐 Running the Numbers: Is It Worth It?
Sample Calculation:
- • 500 homes in your farm area
- • 7% turnover rate = ~35 sales per year
- • Average sale price: $800,000
- • Average commission (2.5%): $20,000
- • If you capture just 3 of those 35 listings (8.5% market share):
- • = $60,000 in gross commission income from farming alone
Compare that to your farming costs (direct mail, ads, events): maybe $500–$1,500/month, or $6,000–$18,000/year. The ROI becomes very compelling once you're established.
🔑 Key Takeaway
Do the math before you start. Calculate the turnover rate, understand the average price point, and project your potential ROI. Farming should be a business decision backed by data, not a gut feeling.