In real estate, it seems like there are a million ways to generate new clients, including sellers, buyers, and every type of property you can think of.
There are tried and true methods that have worked in the past, work now, and will continue to work well into the future, such as referral-based marketing.
With that being said, both business owners and new investors embracing the use of data analytics in real estate are the ones setting themselves up for real growth and massive market success in the real estate industry in the coming decades.
This means that it’s now more important than ever to know what real estate data is and how you can leverage data in real estate to create consistent lead generation for your business.
The game has changed. Residential real estate is no longer only about going to county tax offices or driving around hoping to find what others may have missed. It’s about using real estate lead generation software and real-time insights coupled with data points to predict which homeowners are most likely to sell in the near future.
Data tools crawl county, state, and federal databases to pull insights into things like...
Tools like Leadflow pull thousands of data points like this and, using artificial intelligence and machine learning, run it through an algorithm to determine how likely properties are to sell (and therefore, which properties should be high up on your list of leads).
Residential real estate is commonly defined as any property with fewer than five units. This is where the majority of real estate investors focus their attention, but where most fail to understand the role of data in real estate. Their failure is your opportunity.
One of the most important, but challenging, tasks for real estate investors is finding individuals who are motivated to sell their property. This “motivation” can reveal itself in many predictable ways, alerting investors to a potential deal.
Machine learning can identify motivated sellers using thousands of data points to determine if they need to sell (bankruptcy, tax issues, etc.) or if they want to sell (changes in life phase, selling investment property, etc.).
Different people sell for different reasons. If you know how to leverage real estate data analytics, you can identify who may be willing to sell at a discount.
Software like Leadflow saves users crucial resources and money by using 20 different types of leads to help you find potential investment properties including;
There’s a big difference between having a lot of real estate leads and having quality real estate leads.
What sets the two apart is in-depth data analysis.
With so much data surrounding real estate leads, the data is useless if you can’t read and take action on it. Advanced software (like Leadflow) is just now making it easy for every day, non-data scientists to accurately understand and interpret data by easily using filters. Filters allow you to take thousands, or maybe hundreds of thousands of leads down to just the targeted, quality leads that you’re looking for.
List stacking is the method of executing multi-dimensional searches by layering as many or as few different lead types as the user sees fit. This gives users the ability to create countless custom lead types of highly targeted, highly motivated leads that fit their exact investing criteria. Think of this as your “Superlist” of motivated leads.
Dynamic filtering allows you to use over 40 filters to further refine real estate lead data while also seeing how each filter affects your search in real time.
One of the easiest ways to evaluate a potential deal is to take a look at the “comps,” also known as comparable properties or comparables.
Comparing similar properties that have recently sold, or are currently on the market, with a property that’s a potential deal gives investors insight into the current market and how much they can expect to sell a similar property for.
The information gleaned from comparables allows investors to make informed decisions about how much to buy or sell a property for, directly impacting the company’s bottom line.
Traditionally, finding real estate comps meant driving around the area of sale to find similar homes to your target property, followed by a trip to a local government office (or online, if the data is available there) to determine the sale price.
Luckily, technology and the emergence of new software systems have radically changed the comps process, and with millions of data points, finding real estate comps is now as easy as a click of a button.
If you’re using Leadflow to find comps, click the “Comparables” tab to view all of the similar properties within a set distance.
You can then analyze each property and select the ones that most accurately depict the subject property. Finish by downloading the comps into an easy-to-read report that can be used when negotiating with sellers or buyers.
Real Estate has always been about spotting the trends.
Are people selling?
Where and for how much?
For years, these questions were nearly impossible to answer, yet the success of an investment depended almost entirely on answering these questions correctly.
The Sellability Score is a scoring system built into the Leadflow software that takes in millions of data points from properties all over America and labels every single-family property in America with a score ranging from 0 to 1,000.
With the help of 40 years of real estate data and some of the world’s top data scientists, Leadflow's genetic algorithm gives homes a score from 0 to 1,000, accurately measuring which properties have the highest propensity to sell in the next 90 days.
Sellability Scores are available in the categories of retail, wholesale and rental.