Predictive analytics for real estate: Best tools + guide by Gina Baker for HousingWire

Revaluate: Best for buyer and seller readiness scores

Contact for pricing

If you already have a database full of existing leads, why not leverage predictive analytics to determine their readiness to buy or sell? Revaluate bridges the gap between traditional lead generation and advanced predictive analytics by providing you with a readiness score for each contact in your database. The platform connects to your existing CRM to determine which contacts are most likely to move in the next six months.

Revaluate even offers a Chrome extension that automatically assigns a readiness score to new contacts and displays these insights within Gmail. The Reveal score uses a ranking system from 1-100, with higher scores indicating a higher probability of someone’s willingness to move. The scorecard helps agents to prioritize follow-ups and personalize their marketing efforts. If you’re looking to maximize insights on your existing leads, Revaluate may be the solution you’ve been trying to find.

Features

• Reveal: Identifies contacts that are most likely to move in the next six months from existing contacts in your database.
• Repair: Cleans up your existing contact list by correcting inaccuracies and outdated contact information.
• Report card: Check what’s happening with the contacts in your database with insights into data quality, readiness and areas for improvement.
• CRM Integration: Connects to various CRM systems, leading to streamlined workflows and accurate data management.
• Chrome extension: Allows users to see the readiness score of their contacts directly within Gmail, providing immediate insights.

Pros & Cons

• Identify contacts in your database most likely to move
• Audits and cleans your existing database
• CRM integration
• Unique service offering for existing database compared to other providers

• Pricing structure depends on number of contacts
• Less precise than other real estate predictive analytics tools
• Can be challenging to see a positive ROI

Pricing

• Custom pricing: Pricing is based on the number of contacts in your database.

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PropStream: Best for property valuation and market trends

Starting at $99/month

PropStream gives real estate professionals access to real-time property valuation tools and market insights. The data is pulled from nationwide tax, mortgage and MLS data systems, allowing agents to research and evaluate properties before they impact purchasing decisions. Real estate investors may find this tool to be helpful when researching what properties and neighborhoods to invest in. You can run comps, check appreciation rates and even identify investment opportunities.

PropStream combines multiple valuation methods, which allows you to use real-time sales activity to determine pricing opinions. The market trend evaluation tool tracks price changes and inventory levels while comparing it to buyer demand, allowing the user to gain insights into a property’s investment potential.

Features

• National property database access: Provides access to over 160 million properties across the US that include ownership details, mortgage history and tax records.
• Advanced search filters: Filter by pre-foreclosures, auctions, liens, vacancy and equity.
• Comparable analysis: Run a comparables report derived from MLS data and public records.
• Calculators: Estimate renovation and dwelling additions costs to assist in budget and investment strategies.
• Team management: Manage permissions for team members to enhance collaboration efforts.

Pros & Cons

• 7-day free trial
• Includes mobile app
• Access to county records and MLS comps
• Filter properties based on specific criteria

• Complex operating system
• Additional features at an additional cost
• Technology interfaces are limited

Pricing

• Base package: $99 per month

Add-ons available

• List automator: Starting at $27 per month
• Additional team member: Starting at $20 per month
• Mobile Scout: Free

In-app purchases

• Professional postcards: Starting at 48 cents
• Skip tracing: 12 cents
• Emails: 2 cents

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What is predictive analytics?

Predictive analytics is a method of analyzing historical data, current trends and AI-driven machine learning to forecast future outcomes and consumer behaviors. It is used across a wide range of professions, not just real estate. It is particularly helpful to marketing and risk management departments as it allows them to anticipate what may happen in the future and allows them to make proactive decisions based on the data provided.

In real estate, predictive analysis helps agents anticipate market shifts and gain insights into how consumers may react to those shifts. In turn, agents will be able to strengthen their business plan by using the data to set goals and deliver results.

How does predictive analytics work in real estate?

One of the biggest challenges for real estate agents is finding new clients. While traditional methods of lead generation are effective, predictive analytics helps you take targeted marketing one step further. Predictive analytics involves using statistical data and applying algorithms to predict the future outcomes of future events.

Predictive analytics not only helps real estate agents identify potential clients, but can also aid in setting competitive prices and making strategic business decisions. The companies that provide predictive analytical data pull together multiple sources of data to provide real estate agents with critical insights on local market trends. The common data points that are used include property information, demographics, sales data and behavioral consumer trends.

Why should a real estate agent use predictive analytics?

Real estate agents looking to hone in their marketing skills to target potential clients should seriously consider using predictive analytics. These tools provide agents with a deeper understanding of market trends and consumer behaviors to make more effective decisions to stay ahead of the competition. It allows agents to identify high-intent buyers and sellers before they actively enter the market. It’s not enough for agents to know what real estate predictive analytics can do – they need to know how to use it.

There are several beneficial ways to integrate predictive analytics in your real estate business:

• Find sellers before they list
• Generate high-quality leads
• Understand consumer preferences
• Optimize pricing strategies
• Enhance your marketing ROI
• Improve client relationships
• Predict future market trends

It’s important to note that these analytics are typically used in residential real estate as the data is a bit more complex and unpredictable in commercial real estate. I’m sure that in the near future, the commercial data will be more reliable and readily available.

Real Estate Predictive Analytics: FAQs

How do you use past data to predict future market trends?

By looking at historical data, consumer behavior and other market patterns, predictive analytics forecasts future market trends. These programs analyze past sales, home values, interest rates, economic changes and consumer behavior to make their forecasts. AI-driven models identify correlations between these data points to help agents make strategic decisions about their business from lead generation to pricing.

What is the downside of predictive analytics?

While there are several advantages to predictive analytics in real estate, there are a few downsides to consider:

• The data is only as reliable as the sources used.
• The data is subject to unexpected economic shifts that can disrupt models.
• Many predictive analytics tools come with a high price tag and may not be sustainable long-term.
• Data does not take into account human intuition and personal relationships.

The full picture: Predictive analytics in real estate

Predictive analytics is changing the way real estate agents – and other industry professionals – approach lead generation and pricing strategies. Individual agents, teams and brokerages can benefit from these tools to help them make smarter, more efficient business decisions. Whether you’re focused on gaining new clients or you’re helping existing clients price their home for sale, one of these top real estate predictive analytics platforms could be the right move for your business. The future of real estate is here – and it’s rooted in the data.