In my last blog we looked at making sure you get the listing, and some Big Data tools that are easy to use to do just that. The blog was about just using the tools without getting into all the science behind how we test our models.
So to continue the theme of a few simple rules to make money and how our data models can do this for you, let us take a look at tools that help you make a sale once you have got a listing.
No explanations or reasons why – just simple rules we have seen make a difference to our customers, rules that can turn a real estate business into something profitable, something that delivers a good revenue stream.
Convert listings to sales
Our customers tell us categorically that it is all about ensuring the vendor’s price expectation is aligned to the market, and that the property is appropriately marketed to get the right buyers into the door.
Here are five ways Big Data can help you from the moment you have the signed listing:
1. Get the right VPA through using the CoreLogic RP Data Media Maximiser tool. This shows the exact effect of advertising in both an online portal and in the paper, versus just advertising online. With Media Maximiser, vendors are told how long properties typically take to sell and what types of discounting from listing price occurs, plus what sales success happens if a newspaper is used. Having these facts at your fingertips will help you pitch the right VPA to the vendor, and through that have the right marketing in place to get buyer interest up.
2. If the property you are selling is a typical first homebuyer property, find prospective buyers in an area by finding tenants paying similar rent to the mortgage repayments. Data providers, including CoreLogic, have tools to search rental properties by rental amounts paid and to then append contact details of the tenants.
3. If you are going to auction, run an auction report for the area to show the current clearance rate and auction results by type of property. This can help set price expectations for your vendor and help them prepare for the auction.
4. If you are selling by private treaty, the CoreLogic RP Data ‘Market Compare Report’ in RP Professional can show similar properties on the market, their current price, how long they are taking to sell and the discounting occurring in their listing. This report helps to manage vendor expectations through showing vendors what competing properties are doing, and helps sets responsible prices that attract buyers.
5. Use Facebook Custom Audiences or a data marketplace like Eyeota to target specific customer types, regardless of where they live. For example, if you have a unique property such as a hobby farm you could target animal lovers of a certain age who already own their homes.
This is just a short list: there are plenty more. I would love to hear from you on some of the challenges you have where applying data tools might make a difference.
In my next blog I will go through some tools to turn sales to investors into property management opportunities so you can build your long term wealth.