Understanding Predictive Analytics in Real Estate

Making the right decisions in real estate can have a crucial influence on how much money you make. Agents who make bad decisions tend to have low incomes. Those who make excellent choices tend to earn a lot of money that sets them up for future successes.

You don’t necessarily need “gut instincts” to perform well in the real estate market. When you understand predictive analytics in real estate, you get to use data that will point you in the right direction. You may not even need to learn special skills since some of today’s most sophisticated real estate platforms come with predictive analytics features.

What Predictive Analytics Do

Predictive analytics look at real-life data to determine how a person or the real estate market will likely respond to changes. 

Software has the ability to look at massive amounts of data and spot patterns that go unnoticed by the human eye. For instance, when you look at hundreds of housing prices in a community, you only see the information right in front of you. That’s how the human brain works. When predictive analytics software looks at the prices, though, it starts to compare them to the prices from last month, last year, and last decade. Suddenly, trends emerge that might tell you what to expect next month.

Predictive analytics can also tell you whether someone is thinking about selling a house. How can this happen? By reviewing public records. People are more likely to move after:

  • Having children.
  • Getting married.
  • Getting divorced.
  • Filing for bankruptcy.
  • And other life-changing events.

When the software sees those events, it creates an alert that the property could go on the market soon.

Taking Advantage of Predictive Analytics

What can you do with predictive analytics in real estate? The simple answer is that you can get ahead of your competitors.

When you know that a homeowner is likely to sell within the next few months, you can send a brochure to that person’s address. The brochure might even get the person to start thinking about good reasons to sell. 

You could even go to the neighborhood to hand out business cards and talk to residents. Don’t mention that you know the person recently had a life-changing event. That can seem a little creepy. But, you can mention your previous successes selling homes without burdening their owners. Leave your card behind so the owner can think about it. You might get a call asking you to oversee the sale while the owner makes other arrangements.

Get Predictive Analytics About Homes Likely to Sell Within 12 Months

Cultivating a lead can take some time, even with predictive analytics on your side. Someone who loses a spouse, for instance, may feel uncomfortable moving for several months. A couple having another child may feel too overwhelmed to move until they spend a few months with their new baby.

ProspectNow’s predictive analytics looks 12 months ahead to help you start cultivating leads now. You get a clear view of the properties in your area. When you know which ones are most likely to go on sale soon, you have the ability and motivation to lay the groundwork that it takes to secure a property. 

See ProspectNow’s Predictive Analytics in Action

Register now to watch a demo of ProspectNow in action. The company has been serving commercial and residential real estate agents for over a decade, so you can trust the platform to give you accurate data that helps you increase sales. ProspectNow even has a lower price than most real estate platforms with comprehensive databases. Find out soon so you can start benefiting!