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Predictive analytics to boost real estate business


 

SAN FRANCISCO – Nov. 11, 2013 – Predictive analytics – evaluating and interpreting data to predict future outcomes and trends – is helping the real estate industry better understand transaction and market data and use it to benefit the industry, agents and consumers.

Realtors® and attendees at the “Emerging Business Technology” forum during the 2013 Realtors Conference and Expo gained insights into predictive analytics and leveraging data to help Realtors and local and state associations make better business decisions.

The National Association of Realtors (NAR) recently launched a Predictive Analytics group to examine and analyze member and customer trends to help the association develop services and resources that provide value to Realtors.

NAR Managing Director of Data Analytics Todd Carpenter said the goal is to use different types of data sources and build analytical models. That should take complex information about housing industry problems and simplify analysis, helping Realtors, state and local associations make better data driven decisions.

“By listening more to members and customers, organizations, we’ll be better able to meet their needs,” Carpenter said. “NAR has a mountain of its own data, such as its monthly existing-home sales data, and relationships with other data sources. Analyzing this data will help us learn more about our members and their businesses and clients.”

Realtor Ted Loring, chair of NAR’s Data Strategies committee, said real estate is all about relationships; the goal of predictive analytics is to figure out how to add value to the relationship to make it stronger. “By applying predictive models to data, an organization can uncover behavioral patterns and develop models to guide targeted interactions, and ultimately achieve overall operational effectiveness and higher marketing return on investment,” he said.

Loring said traditional analytics collect propriety big picture data and analyze it to give insight into what happened. Meanwhile, customer relationship management tools look at the little picture and analyze proprietary data that supports current activities. Big data looks at both the little and big picture.

Carpenter said NAR’s new Predictive Analytics group is moving forward in three phases. They are currently in the experimentation phase, analyzing the data to find trends and patterns. He said the next two phases are to develop partnerships with other data providers, and then to begin designing and building products for members.

© 2013 Florida Realtors®

Related Topics: Technology