Throughout the real estate industry, property sales are the cornerstone of business growth. At the same time, traditional real estate farming practices are both unfocused and inefficient. As a result, real estate agents allow guesswork to detract from their performance. That’s why forward-leaning agents are using predictive analytics to accelerate their business growth. Here’s how.
What is Predictive Analytics in Real Estate?
Before diving in, let’s explore what predictive analytics means for real estate agents. This is an advanced modeling method that uses real-time and historical data, behavioral analytics, event-driven insight, andmore to forecast which homes are most likely to sell.
The Key to Effective Predictive Analytics
Not all predictive analytics platforms are created equal. For maximum effectiveness, both event-driven and real-time data should be taken into consideration in addition to property and owner characteristics. Each of these inputs helps improve output accuracy. The best predictive analytics solution for real estate agents can predict as manyas 60 out of 100 property sales, as is the case with Catalyze AI. By leveraging these techniques, real estate agents searching for how to sell more homes can translate insight into action, yielding elevated business growth.
Reducing Marketing Costs
Conventional marketing wisdom teaches real estate agents to target specific zip codes with digital and physical marketing materials. Over time, the hope is that some homeowners will receive the materials when they are actively looking to sell while others will keep the agent in mind for the future.
The problem is that this approach targets large segments of the market where many homeowners are highly unlikely to sell in the near future. By revealing which homes have a high likelihood to sell, predictive analytics enables real estate agents to target fewer homes, thereby lowering marketing costs and generating a higher conversion rate.
Outperforming Competing Agents
In any given area, homeowners have choices when it comes to selecting a real estate agent. In fact, homeowners who are actively thinking about selling may already have a shortlist ofoptions. By knowing which homes are more likely to sell through predictive analytics, real estate agents can:
- Deliver more personalized marketing campaigns
- Allocate more time and energy toward high-probability homes
- Demonstrate their local expertise with targeted marketing materials
- Yield higher ROI for their efforts
- And more
Ultimately, AI is changing how real estate agents approach their outreach efforts. In turn, they can drive greater profitability, sales volume, and business growth. Catalyze AI is at the forefront of predictive analytics within the real estate industry, transforming data into decisions. For more information, consider booking a Catalyze AI demo today!