Using data collection techniques, real estate agents can analyze demographic and market trends to determine the best places to sell homes. In addition to property, they can use other data to gauge rental yields and observe vacancy rates. This data can help agents to gauge the direction of the market and decide on a price point for a property. However, it’s important to note that not all data is available for the public.
Using a website that collects real estate data is a proven strategy to build your database of potential buyers. A home valuation tool allows you to capture prospective sellers by prompting them to enter their email address or other information. This tool also captures physical addresses, so follow-up can be made through mail. For out-of-state investors, a drone video can give potential clients an overview of the agency’s services.
Big data, such as credit bureau reports, allows agents to target potential buyers by leveraging information from other sources. This data includes expired listings, FSBO homes, foreclosures, and circle prospecting. By analyzing this data, agents can identify a targeted audience for each campaign. These leads can then be followed up by agents. With a CRM system, agents can streamline the entire sales process and generate new business opportunities.
Comparable sales, or comps, are a critical element of a property’s value. Comps should include recent sales, especially recent ones. This will help them determine the fair market value of a property. In some cases, the value of a property can go down as the home gets bigger or smaller. Generally, it is advisable to allow about 10% of variance between comparable sales, or else they may give inaccurate figures.