06 Aug Predictive Analytics for Real Estate and Mortgage Agents – SmartZip and CoreLogic
How SmartZip and other Predict Buyer/Seller Behavior – A New Era in Real Estate Prospecting
Your biggest challenges as a real estate agent or mortgage agent is a lack of information about clients and what they’re up to – especially for seller leads. So you’ll like a new digital prospecting trend that’s winning innovation awards.
Major national real estate forecasters have had access to excellent market data to map out predictions on housing markets resulting in a few good predictions (well, okay very few:) So forecasting and prediction can work if there is enough high quality data and an algorithm which can filter through it such as Google for instance, or Amazon who can predict what their customers are going to buy next based on past searching and buying behavior.
The movie minority report is an interesting corollary to predictive analytics. In the movie 3 human brains are used as “precognitive” oracles fed all the data known to predict every person’s future behavior. We’re not quite there yet, but this is the beginning of what may become the precog world of the future. I’ll introduce you to one of the most intriguing lead generation services going — SmartZip which is just a very different approach.
How to Read Homesellers and Home Hunters Minds
What if you had some sort of crystal ball or oracle that could tell you where people wanted to live and when they were going to buy a home or condo? What if you could narrow down the most likely home seller leads?
Well, that crystal ball may already be here, and although it would be a boon to real estate pros, there will be the inevitable outcries against its access to information and use for business profit. Still, the science of predictive analytics is good to know, because you may be able to develop your own social media listening capability and extract buyers/sellers yourself. Anything that could power up your prospecting and sales potential has to be of interest to everyone.
In the age of Predictive Analytics, real estate agents may be able set up and use their own predictive modeling of their Twitter, Facebook, Instagram, Snapchat, Linkedin, and other feeds to find buyer and seller leads, and other realty trends. It won’t be all your digital lead activity but it could be a very progressive addition.
The Amount of Data Available keeps Growing
Work that Data! One of the hottest areas of computing is predictive analytics or predictive modeling. And the reason for that is that businesses want to know what and when their customers will purchase in the coming days to years. As a realtor, this information can help you find buyers in your city or those interested in your city, who may want to sell their home and buy another.
How do they do it? Analytics experts are extracting data from social listening and other data held or data transferred in the cloud. Whatever activity is viewable and therefore downloadable, is extracted into a database and analyzed. Big Data as it’s called is often collected from the cloud and other private databases and pooled to create an informative source of real estate information for realtors, investors, developers, politicians and civic planners.
The process might also be called data mining, however the semantics of it all is confusing. The key point of predictive analytics is that this huge amount of data makes it possible to extract patterns of behaviour online and foresee possible future behaviours and intentions.
“Linking information can give you an incredibly detailed picture,” he said. “NAR’s strategy going forward is to determine the strategy and initial objective, identify models worth emulating, assess existing Realtor® resources, acquire and develop missing capabilities, run a pilot project, and then scale up.” – NAR 2013.
Core Logic is one such company utilizing data from the MLS databases.
Key CoreLogic ListingTrends metrics include leading indicators of house prices, listing inventories, days on market, and absorption rates by listing type—new, active, pending, closed, and sold. With deep and broad coverage of U.S. Multiple-Listing Services (MLS) data, CoreLogic ListingTrends provides monthly snapshots of time-series housing data—at the ZIP Code-level.
Enter SmartZip Predictive Analytics for Realtors
In a previous post on , I mentioned Smartzip, who offers services for real estate agents and mortgage lenders. You’d be wise to check out their service packages and give them a try. They offer insight on ZIP code level which is a little more practical and relevant or the average agent. This can work in concert with my work as your real estate SEO specialist.
What you’ll want to focus on with SmartZip is their data backed selling predictions service to identify seller leads. If you’re selling income generating condos, luxury homes, rental properties, commercial real estate or purpose built student housing investment units, SmartZip could be a big asset.
SmartZip uses up to 24 segments or 2000 variables of data from a number of large listings and real estate firms. As Peter Grace, SmartZip VP says, “You’ve got a 1-in-20 chance in finding a potential seller client if you randomly knock on doors… but you’ve got a 1-in-10 chance if you knock on the doors we tell you to knock on.”
According to a report on mortgagenews.com, that after identifying the best prospects, SmartZip provides a multi-channel marketing program that produces emails and direct mail pieces, including digitally hand-written letters and post cards. It also has a backend lead management CRM feature that looks good. What can it integrate with?
SmartZip’s latest development is called Sphere Targeting – offering home seller analytics and targeted marketing campaigns for an agent’s sphere of influence — or your databases. You upload your personal contact databases to Sphere Targeting’s predictive analytics engine and their software delivers rich data insights and seller predictions for each contact on an ongoing basis. Very interesting.
SmartZip Reviews and Testimonials
Avi Gupta, President of SmartZip explains how SmartZip Works
If you combine predictive analytics with SEO, social media marketing, PPC and maybe remarketing, you’ve got a powerful online arsenal.
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