Learn How Offrs is Using Property Data to Predict Listings
Let's break down exactly how AI and predictive analytics is impacting the future of real estate.
Traditional ways of marketing to get listings in the real estate industry still works; however, advancement and breakthroughs in many fields of analytics have changed the course of marketing over the decade. Real estate professionals can now employ AI and machine learning to analyze property data to predict future listings.
The evolution of AI and machine learning has presented a breakthrough for many industries, real estate included. As real estate agents, investors, and experts no longer have to go through the rigorous process of analyzing paper works, traditional marketing methods and just waiting for their next customer.
Time, talent, and budget are three resources readily available to real estate professionals, and you'll agree that the inefficiency of one of these resources could mean the end of your business. With machine learning-induced systems such as Offrs, all a real estate investor needs to worry about on their part is the talent to close leads - cool right?
So, the question is, "How does Offrs go about this?"
It's not magic, it's math. Offrs has built a system that helps to analyze large volumes of homeowner and property data, statistical algorithms, and machine learning techniques to identify the probability of future outcomes typically based on historical data - in other words, predictive analytics.
How does Offrs Use Predictive Analytics?
Like many companies that employ predictive analytic systems such as SmartZip, etc... Offrs uses over a billion data points on residential and commercial real estate from more than 25 top data providers to generate a list of homes that are likely to be listed for sale in a specific geolocation and market.
A few of the data points Offrs employs to feed its predictive algorithm includes:
The MLS available to you is usually loaded with a lot of information with several data points such as the number of bedrooms, bathrooms, the measurement of the listing, and the year it was developed.
Other data included in the MLS include information such as the last time the property was sold, if the property is ever listed or expired or withdrawn, and many other associated histories about the property. Offrs uses this data, as well as other top data providers, to identify trends such as architectural styles, neighborhood turnover rate, and other factors that might influence demand.
For instance, if you've been spending a lot of time real estate hunting online as of late, a real estate predictive analytical model would see this activity, and use this as a data point to determine how likely you are to sell your home this year.
Major search engines and social media platforms store the majority of your behavior online, and they can sell this information to tailor better advertisements for you in relation to what you search for the most. These companies can also sell this data to larger data aggregators.
Credit card companies usually have access to customers' information whenever they use their cards. They collate this data and sell it to firms whose interest is to analyze your consumer trend, and purchasing power, which will help them understand and predict customer behavior in the future. Perhaps, you're buying supplies for a home remodel, this could mean that you're putting things in place to sell your home for a more favorable price.
Demographic Data/ Market Trends
The best way to predict future behavior is to look at past behavior. Looking at past trends in specific areas provides vital information for our AI machine learning algorithms to understand the "norm" in those areas and predict what will happen next.
For example, the average age to buy a home in Sarasota, FL is 56 years old versus the average age to buy a home in Seattle, WA is 33 years old. All of this information is considered for each part of the country (or usually each census tract) by the proprietary algorithm Offrs has created to accurately predict future listings.
How Does This Propel the Real Estate Industry
Remember when you had to do everything traditionally? How you have to hope on sheer luck that your next client will knock on your door or ring your phone before you know what to say and how to help your next client buy or sell a property? Apart from the fact that it’s time exhausting, it simply means you’re not in total control of your business.
The traditional way of marketing your real estate business requires a lengthy process, but through predictive analytics, firms like Offrs make everything smart, effective, and easier. With the help of predictive analytical systems like that of Offrs you don't need to be the most talented real estate agent, you just need to employ a smart way of getting listings and closing the deals. Offrs will provide you with genuine listings and information to better target leads that fit a specific type of property - that way, you're not shooting blanks.
This predictive analytics system also helps to build marketing campaigns across several platforms to reach your targeted leads, compared to when you have to do everything yourself through your manual campaign and MLS. Potential leads identified by Offrs will receive marketing information from you in the form of direct mail, emails, and ads through several social media, and search engines. That's a lot of reach at the same time with little or no stress.
With the predictive systems, companies like Offrs can assure you of improved quality in sellers leads, decrease the cost of customer acquisition, generate more properties for sale, greatly enhance the efficiency of your real estate company, and most importantly, close more real estate leads in a timely manner.
Although employing data analytic systems as a real estate agent seems interesting, keep in mind that the real estate business is a human-to-human business.
What predictive analytical systems do is help you avoid time-wasting in many processes such as reaching out to the wrong audience, setting up marketing campaigns, working with several assistants, and providing you with real-time genuine leads. Offrs even takes this up a notch by predicting the future within a span of a year. So, it’s safe to say Offrs helps prospect, and all you have to do is nurture the leads already generated by the system, and close the sale whenever it eventually happens.