Okay, so you probably know about the value and benefit of mailing postcards via Every Door Direct Mail (EDDM) by the United State Postal Service (USPS)... They are plentiful. The postage rate for delivery is attractive (17 cents a door). The residences are all in a close, neat geographical location. This allows you acquire the best postage rates for your mail marketing and when it’s time to walk your farm to meet homeowners – the residences are all in a neat geographical location for easy walking and knocking.
The challenge is... How do you find the “right” EDDM Group to deliver to? Well, that’s a bit tricky – but not only is there hope, there are real data solutions to solve this tricky challenge.
Let’s break the moves down step by step for you. There are 4 very important steps in choosing the correct EDDM location(s) to farm and here they are:
- Locate EDDM Groups within a zip code or city by finding the EDDM Groups with the highest turnover rates available. In other words, the higher the ratio of homeowners that move annually, the higher the chance of finding more sellers within those areas in the future. Why? Every real estate coach in the U.S. teaches their paying clients to find areas of “high turnover” defined as 7% turnover rate or higher. Statistically, they have shown that finding areas where homes are selling provides agents with areas that will continue to sell at high rates. This will help make your marketing more efficient.
- Once you have the EDDM Groups ranked from highest to lowest turnover rate – Locate the EDDM groups that have “Sales Price Points” that interest you. In other words, if two EDDM groups have similar turnover rates, but different home price selling points – it’s much better to sell a home that sells for $600K vs. $350K, right?
- Now, this is important: Compare the number of “owned homes” in the EDDM Group against what the USPS will deliver to in the same EDDM group. Keep in mind – EDDM via USPS delivers to every resident (homeowners, apartment renters) within the EDDM group. Most agents don’t want to mail to renters – Agents mail market to find potential sellers. So, you wouldn’t want to mail to 500 residences via EDDM if only 300 of them are “owned” properties. If you did, you would be employing the USPS to deliver to 200 apartment renters in that EDDM Group that can’t be sellers because they are renting. Look for EDDM Groups on the USPS Website that have a similar number of “delivery” vs. “properties owned within the EDDM group” – See the examples provided for zip code 98006 in Bellevue, a suburb of Seattle, WA. Two EDDM Groups with similar turnover rates 7.95% and 7.84% - but the 7.84% group (Carrier Route C037) has 536 owned properties within the EDDM Group of 543 units that the USPS will deliver to. Therefore, Carrier Route C037 has a much higher “ownership deliver rate” than Carrier Route C028 – providing a better value for you as a paying customer.
- As a last step – look to see what the “average years owned” is for the EDDM group you select. Average home ownership rates in the 7-10 year range seem to indicate areas that folks purchase into and then sell rather quickly – possibly to upgrade to a larger home or to a home in a more desirable location – which results in higher sales rates annually. Also, look to see what the Non-Owner occupancy rate is for the EDDM group. Much of the time, Non-Owners will sell property more frequently than Owner Occupants, so high Non-Owner Occupancy rates could help facilitate more sales, more often.
In the example provided for Zip Code 98006 in Bellevue, WA – the perfect EDDM Group was found utilizing Benutech’s “Title Toolbox” data. Carrier Route C037 had a high turnover rate (7.84%), it had 536 owned units within a 543 unit EDDM Group, it had one of the highest sales price points in Bellevue at $1.3M, and had an average years owned of 8.6% - indicating that this area could be an area where folks purchase and sell rather frequently. If you are farming in Bellevue, this would be the place to farm!
Okay, yes... This may seem like a lot... and it is... so just do this: Contact Benutech at 866-887-0206 and have them help you with this process. They are marketing data experts, and by utilizing Benutech data and our technology – we can complete these steps for you and place you in the perfect EDDM group to start your successful farming campaigns.
Oh, but please realize, you are not done once you find that perfect EDDM Group to market to! Now it’s time to make you known to the homeowners within the EDDM Group. Let’s go back to those Real Estate Coaches... Their expensive advice is to market monthly. You have just located the perfect farming location – so FARM it! Step One: Get the mail marketing pieces out to this EDDM Group once per month. Benutech can help you find the perfect mail marketing partner for your campaigns.
Step Two: Once the mail is out... You need to get out. Homeowners are not going to hire you to sell their home unless they get to KNOW YOU. It’s that simple. Having homes in EDDM Groups allow you to easily walk and talk to the homeowners within the EDDM groups. Don’t rely just on the mail... You are way more powerful than a postcard... Meet the folks in the EDDM Group so that they can hire you when it comes time to sell. Seize the day, meet some folks – and take new listings!
VP Business Development
Benutech, Inc. is a real estate data company out of Costa Mesa, CA and is the creator of “ReboGateway” (for Real Estate Agents and Investors) and “Title Toolbox” (for Title Companies and other property related business). To contact Brian Fox: Brian@benutech.com or 714-580-8099.