{"id":625,"date":"2024-07-18T15:16:01","date_gmt":"2024-07-18T15:16:01","guid":{"rendered":"https:\/\/ferraro-zugibe.com\/?p=625"},"modified":"2024-08-15T11:29:28","modified_gmt":"2024-08-15T11:29:28","slug":"predictive-analytics-in-real-estate-best-practices-software-for-agents","status":"publish","type":"post","link":"https:\/\/ferraro-zugibe.com\/index.php\/2024\/07\/18\/predictive-analytics-in-real-estate-best-practices-software-for-agents\/","title":{"rendered":"Predictive Analytics in Real Estate: Best Practices & Software for Agents"},"content":{"rendered":"
Imagine knowing exactly which homeowners in your area will sell their property in the next 12 months. It used to take a mind reader (or a lot of luck) to get that kind of inside intel on your local real estate market, but now it’s achievable with big data and the right predictive analytics company. <\/p>\n
You need to embrace this technology and use it to help more clients (and help your pockets grow, too)! I will break down what predictive analytics in real estate are, how you can use them, their benefits, and which real estate analytics software you can use to boost your business. Here we go! <\/p>\n
Predictive analysis is a technique that uses data, statistical algorithms, and machine learning to identify the likelihood of future outcomes based on historical data. It involves analyzing current and past information to predict future events. <\/p>\n
In real estate, predictive analysis can help agents forecast market trends, identify potential buyers and sellers, set competitive prices, and make strategic business decisions. These real estate analytics companies pull together millions (if not billions) of data points from multiple sources to give you important insights. <\/p>\n
Common data sources include the following:<\/p>\n
If you\u2019re a MARVEL fan, you may remember in Captain America: The Winter Soldier<\/em> the scene where Jasper Sitwell gets kicked off the roof by Black Widow for information about Zola\u2019s algorithm. Ok, we won\u2019t be kicking anyone off any rooftops, but Zola\u2019s algorithm is a great example of predictive analysis. It provided data on who to target, when to target them, and how to take them down.<\/p>\n The same concept is applied to PA in real estate. Imagine if you had a list of homeowners in your farm area who were identified via predictive analytics as highly likely to sell their homes in the next 12 to 18 months. Think of the time, energy, and money you could save by marketing specifically to those homeowners. You can make it work for you in your real estate business with a company that knows how to harness it.<\/p>\n Ok, let me give you some actual data to consider. One of our top picks, Offrs, provides 30 guaranteed leads in a chosen ZIP code every month, and those leads come with an astounding 72% prediction accuracy rate. Assuming that prediction rate, you\u2019d have about 20 solid leads each month. The average listing commission is over $12,000. So, if you convert half of your leads, that\u2019s $120,000. As Offrs says: It\u2019s not magic; it\u2019s math.<\/p>\n Real estate predictive analytics is changing the game, giving agents and brokers powerful tools to understand market trends and customer behaviors. With tons of data and smart algorithms, this tech helps you make better decisions, market more effectively, and stay ahead of the competition. <\/p>\n Using predictive analytics in real estate offers several key benefits:<\/p>\n Now that you know what PA is, why it\u2019s important, and what the benefits are, it\u2019s time to put predictive analysis to work for your business. While residential real estate analytics isn’t fully on par with the commercial side yet, we’re getting closer to seeing every agent, team, and broker using AI or data analytics tools<\/a> in 2024.<\/p>\n Here are a few ways you can start to incorporate PA into your business practices: <\/p>\nBenefits of Using Predictive Analytics for Real Estate <\/h2>\n
\n
How Agents Can Use Predictive Analytics<\/h2>\n