How to Increase Real Estate Sales with Predictive AnalyticsReading time: 5 minutes
Zillow is the go-to website for self-service real estate buyers and sellers. To increase real estate sales, realtors and brokers increasingly need to seek ways to differentiate themselves. They need to offer clients things they can’t get online.
One great option is predictive analytics. Analytics allows agents and brokers to work with hard data to reinforce their sales skills and abilities. The best analytics platforms make it easy for anyone to organize data, make predictions about the future, and share information across the agency.
In this post, we’ll cover how to increase real estate sales by highlighting 5 of the many benefits predictive analytics can bring to your business, whether you’re a buyer agent, seller agent, or broker.
Project Future Home Values
The most direct benefit of predictive analytics for real estate agents is more accurate home value projections. Predictive analytics factors in historical data to project trends in future value. This means you aren’t limited to telling your buyer or seller client what the home is worth now — you can give them a good idea of what the home will be worth decades down the line.
This gives you great leverage in negotiations. If a home is priced well to sell on the current market, but it’s projected to drop in value over time, you have a bargaining chip to get your buyer a better price. If a home is likely to increase over time, that’s valuable information for your buyer to factor into their offer or important information for a seller to weigh when setting an asking price.
Bringing these numbers to the negotiating table gives you an advantage no matter which side of the sale you’re on. It’s a benefit of working with you, specifically, to mention during Current Market Analysis meetings. It also means you can build better comps!
Estimate Likelihood of Sales to Streamline Marketing
One of the big challenges in real estate marketing for seller agents is knowing whether your efforts are targeting the right potential sellers. The most common strategy is to blanket a particular zip code with mailers, like postcards or flyers. By sheer numbers, your marketing materials are bound to end up in the hands of the right person at the right time — eventually.
But there’s a way to send fewer mailers with a higher success rate, saving you money!
Using Census data, you can identify which zip codes have a higher percentage of residents whose life circumstances make them more likely to consider selling soon. For example, if a particular zip code has an especially high divorce rate, that area is more likely than surrounding zip codes to contain future sellers. Similarly, a high rate of marriages in a zip code with many smaller homes may be a good outreach target for buyer agents, with newlyweds looking to relocate for schools or purchase a larger home.
As you begin to incorporate variables into your predictive model, it will get better and better at identifying which factors indicate that a neighborhood is ripe for seller agent outreach. The strongest predictive modeling software automatically identifies the most relevant variables so that in a single click, you can build a powerful model to make projections.
With this data in hand, you can expect to save money and increase real estate sales by targeting the areas that will bring you the greatest benefit.
Organize Mailer Data
Data entry is a nightmare for real estate administrators. You’re likely working in multiple zip codes and different jurisdictions — perhaps even different states. Chances are that each data source is organized differently. Perhaps each data source is stored in a different file format. Some may be in Excel, some in text files, and some in databases.
Why dedicate all that time to copy, pasting, and manipulating data? A data prep solution exists to make things much faster. It has a drag-and-drop interface that enables anyone, even those with limited computer skills, to follow along with the process?
With the right data preparation software, you can vastly reduce the amount of time needed to organize your varied sources and formats of data, and ensure that it’s accurate and up to date. You can also build a repeatable, saved process. Build your process and get everything organized this year, then save it. In future years, just drag and drop new data into the existing process to get updated results!
Develop Better Client-Nurturing Strategies
When you start to track client data, predictive modeling’s capabilities really take off. If every agent in the office pools their CRM data, you can start to estimate how a new client will prefer to communicate and when it is best to send them follow-up. Get off on the right foot with new clients by tracking interactions with previous clients. Using that data, build a predictive model to inform your outreach strategies.
The person-to-person touch is always going to be critical in real estate. But using data to back your intuition about how a client might respond to outreach is a major leg up.
Intra-Agency Data Sharing
Real estate functions best on solid information — sale prices, interest rates, valuations, and more. Brokerages whose agents can access this data easily know exactly where they stand. This helps them make better decisions about what to prioritize.
A top-tier data-sharing system allows anyone in the brokerage to access up-to-date, live data in visual dashboards and reports. Each agent can quickly create a custom dashboard to see exactly what they need in just a few clicks. Compare sales numbers to comp values or assessed values against appraisals in an appealing format.
How about a little healthy competition between agents in your office? An appointed data manager can control who sees what information. The broker can view everything, while agents can access sales information to compare their performance with live, updated data. Why not build a leaderboard that automatically updates when a sale comes through to motivate the agents? Award a prize for the highest seller each month!
Increase Real Estate Sales with Analytics
Data analytics opens up several avenues to increase real estate sales with savvy clients who are looking for data-backed insight into the market. With so many tools at their fingertips, modern clients feel empowered. They make more and more decisions on their own. Offering a major value-add will help set yourself apart from the rest of the agents in the pack.
A Pre-built predictive model or a consultant is costly. Often, their price negates the financial benefit brought by analytics. With that in mind, the best bet is an in-house analytics platform that agents, admins, and marketers can easily learn to use and integrate into their existing process. An in-house platform is cost-efficient. The right platform makes data prep, predictive modeling, and collaborative data sharing easy and intuitive for everyone.
Interested in a demo of software that provides all of that? Click the button below to connect with the Rapid Insight team!