The chatter among industry
professionals about using data to find listings is building. Experts are
offering instructions for retrieving and analyzing data points that can
predict the homes and homeowners most likely to sell -- perhaps even
before the homeowners themselves are ready to sell.
In this Inman News article by
Bryan Robertson, Bryan reveals three data points an agent can research
to determine homeowners who are likely to list their home. At SmartZip,
we are huge proponents of using big and small data for finding listings,
so we couldn't help getting in on the conversation. Bryan's points are
excellent and the analysis of the data is applied very well -- and they
are only the tip of the iceberg.
are hundreds of data point variations and combinations worth
considering when searching for potential listings. Some of them can be
found by real estate professionals with access to MLS data and county
records, and others require the work of data scientists.
Here are a few examples:
1. Growing families
Data point: Presence of children
the family expanding, or are children leaving the nest? This can be
difficult to Google, as the data is sparse. However, if the owners have
been in the home for several years, including before they had children,
they are likely hoping to move up to a home that better suits their
2. Empty nesters
Data points: Age of homeowner and stage of life
his article, Bryan keenly mentions that an aging homeowner borrowing on
equity could be a target for real estate agents. Another group that
agents should focus on is recent empty nesters. In many cases, their
biggest listing barrier is emotional -- selling the family home is a big
decision and the beginning of a new life stage. Real estate agents can
work with this group to go through the main steps -- de-cluttering,
performing basic upgrades, etc. -- to get them ready for sale. Because
they often don't have a timeline in mind, agents can help this
demographic understand how current market conditions could benefit them.
3. Distressed homeowners
Data point: Notice of default
the rates of foreclosures are dwindling across the U.S., there are some
markets being hit late with high rates of default. Real estate agents
who focus on this specialized demographic can become a trusted resource
for homeowners whose load is too heavy.
4. Big spenders vs. big savers
Data points: Consumer purchasing data
data from the National Association of REALTORS® shows that 68% of
repeat buyers refrained from luxury or non-essential purchases as they
prepared to purchase a new home. Additionally, 56% of these buyers said
it took them less than one year to save for their new home's down
payment. Together, these factors show that those planning to sell their
home are very conscientious as the listing date approaches. Real estate
agents can pay attention to the spending and saving habits of potential
sellers in their sphere or market area to see who may be preparing to
sell in the next year or two.
5. Change in neighborhood demographics
Data points: Age of homeowner, school district data and rankings, commercial development and more
time, neighborhoods change. In the span of a few decades, a new
sprawling suburb with low turnover can transition from a family-friendly
neighborhood to a community full of retirees. Conversely, a previously
sleepy market may quickly become a hotspot, with young families moving
in and local cafes dotting the street corners. Homeowners who have been
around for decades may be wary of a changing scene, or they may be
hoping to cash in on their initial investment. Real estate agents can
work with long-term residents to understand home values in their
changing neighborhood, and to identify inexpensive upgrades that could
net them a higher price at closing.
The list goes on and on
data can be found online, while other listing insights can be found by
looking at trends in significant data points in a market area over time.
This deeper dive is usually left to data science experts, who can not
only find and interpret homeowner information, but also use big data to
fill in the holes.
SmartZip, our data scientists pull and measure hundreds of data points
to deliver the best listings prospects to you.
See what SmartZip clients are saying and learn how you can map a custom territory, get insider rankings of
the homes most likely to sell and automated marketing campaigns that
target these potential sellers with SmartTargeting.