To better target your marketing dollars, real estate brokerages are leveraging predictive analytics to reach those who are most likely to buy or sell.
Predictive analytics is a way to forecast future trends and results by analyzing historical data with statistical algorithms. New technology has made it more accessible in recent years to businesses of all sizes.
Imagine being able to target a consumer who is contemplating selling before they even reach out to any real estate professionals. By reaching a client on the front end, you could motivate them to act sooner while making yourself a more appealing candidate in the process.
Predictive analytics “help agents get better at their jobs because consumers’ expectations and questions are getting more precise,” says Martin Morzynski, chief marketing officer with HouseCanary, a real estate data analytics firm. “It brings a level of accuracy and granularity into the process that changes the game.”
You can use it to show consumers future price projections for specific properties and neighborhoods. For example, real estate pro Rudy Pierre, with Yellow Brick Real Estate in Stamford, Conn., uses HouseCanary to provide his clients with predictive home price forecasts that aim to give them more confidence in their investments.
Jay Macklin, broker-owner with RE/MAX Platinum Living in Scottsdale, Ariz., uses SmartZip analytics to target homeowners who might be the most likely to sell their homes soon. The service uses U.S. Census data to track sellers’ life cycle, based on public records like divorces, deaths, and marriages. The data can then predict the percentage of homeowners who are most likely to sell.
“Many agents will hear from people who want to know what their home is worth, but that doesn’t tell them whether someone’s ready to sell their home,” Macklin says.
Source: “Predictive Analytics: The Next Big Thing in Real Estate?” RISMedia (June 29, 2017) and “How to Use Predictive Analytics in Your Real Estate Business,” RISMedia (June 10, 2017)
