Taking Advantage of Big Data for Real Estate Agents

Gargantuan companies like Netflix saves a staggering $1 billion every year. It does this through optimizing its predictive engines which recommend programming and content for the entertainment giant's customers.

Small companies too can take advantage

Other than large companies, small estate businesses can also harness the power of Big Data. The latter is suitable for all businesses, and not only to the big companies. Leveraging the predictive technology does not translate into dumping your current software and using lots of new, unfamiliar codes. Real estate agents can be assisted by predictive products. These can be anything from cold marketing calls to mailers. Old fashioned conversation can also be a viable option.

Netflix is not alone. A number of data sets drive the world's largest companies in unexpected and new ways. A few have perfected the system. For instance, Google Translate; its algorithms have been radically retrained to make the translation in the contextual sentences. A fourfold rise in the occupancy rates is observed by Airbnb hosts when they put the price of their rentals within about five percent of the recommended rate of the customer.

Using to the max

Predictive analytics can be used in a few ways to tweak both bottom line and business utilizing predictive analytics specially written for real estate. It is possible to double impact, spending half the money, and using fewer hours in order to achieve it.

One excellent example of this activity is to send mailers to everyone in a ZIP code. Costs of marketing will be prohibitive. Your communication will also lose its value. It makes more sense to whittle the target down to a maximum of only 20 percent of the total number of residents. Better results are almost instantaneous as you send the correct and impactful message to the correct recipients at the right time. These make a perfect marketing trifecta.

It's to be remembered that customers are not stupid. They can figure out when they are one among many. If this happens, nobody will hire you for your services. A cluster of likely sellers is found when predictive analytics is used. You can earn money by naturally guiding the conversation to the probable reasons as to why they are selling. Real conversations will ensue with a number of real estate sellers. You can give them quality advice on how to list their properties. One undeniable advantage is that the negative outcomes will drastically come down.

Leave a Comment