Real Estate Predictive Analytics Is Here To Stay
When predictive analytics technology entered the financial sector in the 1980's, it largely replaced existing manual data analysis practices that were already widely in use. This is important to understand because while predictive analytics is new to the RE sector, the technology itself has been proven in other industries for decades and simply automates core predictive business practices set in place to model the best possible path forward in a given market.
As hard as it is to imagine Wall Street going back to the days of manual financial modeling from books with pencil markings, it's just as hard for those that have seen the practical results of predictive analytics in their real estate business to imagine lead generation without it. This is the state of predictive analytics in RE: it's here to stay. After several years of a consistent national accuracy average of 70% or higher, offrs.com has led the way in employing predictive analytics solutions to the RE market.
The Role Of Data In RE Predictive Analytics
It cannot be overstated how important data is in predictive analytics. Sure, it's easy to see that you need something to process in order to output useful predictive information, but what many forget is the scope of processing something like a homeowner's life actions and more, the life actions of homeowners across the nation. As a homeowner yourself, you can imagine that changes in one area can easily upend the model across the board. This is why, for accurate predictive analytics models, you need continuously updated data and lots of quality control mechanisms in place.
Modeling future events requires not just one, but multiple streams of updated data from reputable sources. Even more, it requires a continuous practice of manual verification processes before, during and after a given prediction. After? Yes. It's not enough to simply say something is likely to happen... in order to deliver continuous value to our solution, we employ data analytics specialists internally and externally to sift through our past predictions and compare those to after-the-fact events. This is how we know we're on target. To recap:
- In real estate, predicitve analytics is everything: You can run your business using tools and resources from decades past or you can jump ahead of the competition and adapt early.
- Updated sources of data play an integral role: offrs.com is the trusted lead generation provider for real estate and simply going with any provider is taking an uneccesary risk.
- Verification before, during and after-the-fact is imperative: Predicting the future is not enough... demonstratable results from past predictions is the only way to make sure you're getting value.
Why Is This Important To My RE Business?
Modeling future events is great and doing so with significant mathematical accuracy is indeed impressive, but what does this mean to the daily grind of a real estate agent working their farm? Simply put, it means leads. It means we can tell you which homeowners are likely to list their home within the next 6 to 12 months, but also, when you consider the inverse, it means we can tell you which homeowners you may not want to throw marketing dollars at (since they're likely not to list this year).
offrs provides exclusive data licensing options to agents via census tracts. The tracts can be small or large depending upon the region and factors like population density. But let's say that your farm has 2,500 residents in it. What this means for your business is that offrs can help you identify where to spend your marketing dollars this year. Specifically, which homes are most likely to list their home for sale (and therefore need your services here soon)... as well as those that likely won't.
Think about how much you spend each campaign in order to establish, grow or even maintain your brand in the region. What if you had AI insights on which 250 homes (for example) in this area of 2,500 residents is statistically likely to need an agent here in the next 6 months. Knowing this, you could spend the same budget and reallocate your focus on these addresses... or you could cut your budget significantly and still maintain a stable ROI plateau. Maybe this allows you to expand your brand into another farm.
Business Intelligence In RE Is Here
So this is all to say that business intelligence is here and it's called predictive analytics. It's proven and it's not going anywhere. With offrs providing exclusive data licensing options, the question is: who is going to be the one to employ predictive analytics data models in the region there? We've worked long and hard to build the modeling engine, but we've worked just as long and hard to package this into a system built specifically for agents like yourself. Let's set up a time to discuss your business needs and how offrs.com may have just the sort of insights you were looking for all these years. The time has come.
We've come a long way from our early startup days! Be sure to check out this oldie, but goodie at the Herald Tribune!
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