Analytics is a term that we hear thrown around every day it seems; but what does it actually mean for someone that is just learning to navigate the real estate world? Well actually, it entails a lot! The vast amount of data that is available at our fingertips these days can be very overwhelming if you don’t know what you are looking at; which is a major reason that many people spend so much time researching before they start the process of buying or selling their home. According to A Joint Study from The National Association of Realtors® and Google, “Home shoppers using search engines are actively engaged, raising their hands asking for more information or assistance.” (1). Which is AMAZING to hear as a real estate agent because I am here to help make your experience the best possible! However, what most people don’t realize is that there is so much more data available than a quick Google search can provide. Which is why choosing an agent that works both for you and with you is a key aspect in the real estate process.
So what are the analytics that you are missing on your own? Well, according to National Association of Realtors, “Finding the right property was ranked highest among all generations as the most difficult step in home buying.” (2) This is where analytics and forecasting come in to give perspective clients the best snapshot of the market that they are in and where they are looking to go. There are so many other factors that need to be looked at in order to generate a complete story for your needs that without using analytics to help with your decision it would be overwhelming and almost impossible to find exactly what you are looking for. One example of this is the fact that one of the most looked at statistics is how the schools in a neighborhood perform, however another statistic people often overlook is publicly available service call data. Service complaints about issues such as utilities problems or road debris can provide a view about a neighborhood’s standards of maintenance as a whole, but also the most common issues facing the area. This can tell us a lot about the value of the property in the neighborhood and also forecast how it will hold that value over its lifetime. You can even use these analytics and dive deeper into more niche areas. For example, an interesting statistic is that “neighborhoods with higher noise complaints than service complaints are indicative of a higher-level neighborhood.” (3). Through these advanced analytics an agent can provide clients with a much better understanding of not only the market, but the true needs of the client.
Beyond this there are even more tools available to help navigate the real estate process. Predictive analytics is barely scratching the surface of the real estate sector. However, the impact of this technology is apparent across the industry. There’s no doubt that predictive analytics will drastically change the landscape of this market in years to come for residential and commercial real estate and on both the buying and selling side. Understanding how this technology works and its potential is crucial moving forward. However, it is always a good idea to do some research before and know your home’s value or how much you can afford. However, if you are ready to start the real estate process please reach out to get a personalized experience and make your real estate dreams a reality!
(1) The National Association of REALTORS® and Google. (2013). Consumer and Market Trends in Real Estate. Retrieved from https://www.nar.realtor/sites/default/files/documents/Study-Digital-House-Hunt-2013-01_1.pdf
(2) National Association of REALTORS® Research Group. (2019). Real Estate in a Digital Age 2019 Report. Retrieved from https://docs.google.com/viewerng/viewer?url=https://www.nar.realtor/sites/default/files/documents/2019-real-estate-in-a-digital-age-08-22-2019.pdf
(3) Zapori, G. (2019, August 27). Six Surprising Data Sources Probably Being Overlooked In Your Multifamily Analysis. Retrieved from https://www.forbes.com/sites/forbesrealestatecouncil/2019/08/27/six-surprising-data-sources-probably-being-overlooked-in-your-multifamily-analysis/#67b2ba174f6d