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Definitive Guide To Real Estate Data Analytics

Everything you need to know about real estate data analytics in today's market.

If you’re looking for a guide on leveraging data analytics to glean actionable insights for your residential and commercial real estate business, we’ve got you covered.


What AreData Analytics in Real Estate?

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.

Chapter 1:

Real Estate
Data Analytics

Data

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.

Using Property Data & Analytics

Data tools crawl county, state, and federal databases to pull insights into things like...

  • Foreclosures
  • Bankruptcies
  • Absentee Owners
  • Active Listings
  • Delinquent Tax Activity


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).

UsingData

What is Residential Real Estate?

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.

How Data Helps Identify Motivated Sellers

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.).

MotivatedSelleres

Data-Driven Insights Provide Many Different Lead Types

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;

  • Absentee Owners
  • Active Listings
  • Cash Buyers
  • High Equity
  • Bankruptcies
  • Private Lenders
  • Renters
  • Free & Clear
  • Low Equity
  • Flipped
  • Upside Down
  • Delinquent Tax Activity
  • Bored Investor
  • Foreclosures
  • Pre-Foreclosures
  • Long-Term Owners
  • Potentially Inherited
  • Vacancy
  • Zombie Property
  • Investor Owned

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.

What is Data Analysis In Real Estate

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

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

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.

What Are Real Estate Comps?

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.

SoldHouse

Finding Comps

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.

Using Comps

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.

Chapter 5:

Artificial Intelligence

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Using Data In Real Estate

Real Estate has always been about spotting the trends.

Are people selling?

Buying? 

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.

Leveraging Property Data & Analytics To Determine Sellability Score

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.

Real Estate Leads Scored by Ai

Save time and money by only focusing on leads with a high propensity to sell

We're so confident you'll love Leadflow, you can now try it for free!

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