Predictive Analytics for Real Estate: Best Tools + Guide
Have you ever been prospecting and wished you could read minds to know exactly who’s ready to sell? While telepathy isn’t an option, predictive analytics will get you pretty close. Predictive analytics in real estate combines the use of historical data and algorithms to anticipate future market trends and identify potential sellers – sometimes even buyers, too. Real estate agents can use this data to identify motivated sellers and people who are likely to buy a home.
We’ll review the best predictive analytics software that will give you a competitive edge in any market. Plus, we’ll take a look at the benefits and best practices to give you a better understanding of how real estate predictive analytics impact your business and how to use them to your advantage.
SmartZip: Best for targeting motivated sellers
SmartZip is a real estate predictive analytics tool built with real estate agents in mind. SmartZip uses AI-driven analytics to evaluate homeowner data and consumer behavior to identify who is most likely to be ready to sell their home. What does this mean for you? Agents can now spend time converting high-quality leads that are sure to turn into more closed deals instead of spending hours trying to identify potential sellers through expired MLS listings or door knocking.
While some agents may shy away from using high-tech solutions, SmartZip’s user-friendly platform is perfect for agents at all experience levels. With a built-in CRM and automated marketing tools, agents can work smarter – not harder. Streamline lead outreach and nurturing by staying connected with potential sellers, SmartZip increases the likelihood of conversion—helping agents secure more listings.
Features
- Smart Targeting: Grow your listing pipeline through target marketing in local markets you choose.
- Reach150 integration: Collects client testimonials that can be turned into targeted ads to generate new leads.
- Automated valuation model (AVM): Boosts client consultations by using its proprietary algorithms to accurately estimate home values.
- Market Pulse: Identify local market trends in real time with downloadable graphics to use in your marketing campaigns.
- Smart Data: Over 1 billion data points on residential and commercial real estate.
Pros & Cons
- Built-in CRM
- Interactive dashboard
- Automated print marketing
- Integrates with your own farming strategy
- Non-exclusive leads
- Leads have to be nurtured to convert
- Users report spending nearly $1000 per month to see results
- Must sign up for demo to obtain pricing
Pricing
- Pricing is custom to location, demographics and number of leads. There are also marketing add-ons available. Typically, pricing starts around ~$500/month; call to customize your pricing.
Offrs: Best for automated seller lead generation
Offrs uses AI-powered real estate predictive analytics to identify highly motivated sellers before they even think about listing their property. Agents receive a direct feed of exclusive seller leads in their targeted geographic area, making it easy to nurture your prospects.
Offrs provides predictable and reliable data that helps agents focus on converting high-intent seller leads into clients. Agents will save valuable time with their automated marketing through targeted ads on platforms like Facebook, Instagram and Google that drive traffic straight to your own landing page.
Features
- AI-powered lead generation: AI technology identifies homeowners that are most likely to sell.
- Territory builder: Reduce the competition by claiming exclusive leads in specific geographic areas.
- Lead feed: Stay on top of new leads with a real-time stream of potential sellers.
- Lead capture: Built-in landing pages and contact forms with automated follow-ups to help you convert leads into clients.
- Free marketing plan: Includes a customized marketing strategy to help agents maximize lead conversion through email drip campaigns, digital ads or even direct mail.
Pros & Cons
- Sister company to SmartZip
- Inside sales and marketing included at no extra cost
- Use ad tools to connect your digital marketing
- AI-generated exclusive listing leads
- Access smart data anywhere
- Lead quality can vary
- Focuses primarily on seller leads
- Requires a six-month contract
- Pricing may not be feasible for newer agents
Pricing
- Lead Gen: 15+ leads starting at $399 per month
- Lead Gen Pro + AI: 30+ leads starting at $699 per month
- Lead Gen Elite + AI: 60+ leads starting at $999 per month
Catalyze AI: Best for targeting sellers through probate lead data
Take the guesswork out of real estate prospecting by using advanced predictive analytics for real estate agents. Unlike traditional lead generation, Catalyze AI leverages historical data to find sellers that are highly likely to sell within the next 12 months – particularly those with an inherited property to sell.
Catalyze AI boasts an impressive 40% accuracy rate in predicting whether someone is likely to sell their home – now or in the future. They also provide detailed contact information so agents can connect directly with the lead. Catalyze AI’s pricing is straightforward and cost-effective, allowing you to do more with your marketing budget.
Features
- Exclusive inheritance leads: Specializes in identifying properties that are likely to sell due to being inherited.
- Radius-based distribution: Properties closer to the agent are prioritized, allowing each agent to focus on their local market.
- Fixed pricing structure: Transparent pricing structure allows agents to manage their marketing budgets without unexpected costs.
- Comprehensive contact information: Each lead comes with detailed contact information, including phone numbers, email addresses and a physical address.
Pros & Cons
- Exclusive local leads
- Highly accurate data and conversion
- User-friendly platform
- No set-up fees
- Real-time data integration
- Costs for services can add up quickly
- Results are directly related to agent follow-up
- Wider geographical areas may not work for all agents
- Limited reporting features
Pricing
- 30 property leads (inheritance leads under $1mm): $180 per month
- 30 property leads (inheritance leads over $1mm): $240 per month
Top Producer: Best for CRM integration and nurturing leads
Top Producer takes predictive analytics for real estate to the next level by integrating it into their already robust CRM. Many predictive analytics tools supply agents with leads and a dashboard to track those leads, but Top Producer integrates them into their CRM, automates follow-up and tracks lead engagement.
Top Producer’s all-in-one solution helps agents identify motivated sellers while simultaneously nurturing relationships. Instead of juggling multiple tech platforms from lead generation to transaction management, agents can utilize one fully integrated system to manage their sales funnels.
Features
- Smart targeting: AI data analysis identifies the top 20% of households that are most likely to sell within the next 12 months.
- Automated multi-channel marketing: Includes automated direct mail, digital ads and email campaign marketing.
- Exclusive lead access: Claim a targeted geographic area to receive exclusive, high-quality seller leads
- Smart follow-up and CRM integration: Smart targeting leads are automatically added to your Top Producer CRM.
- Lead performance dashboard: Gain insights on lead engagement to determine which leads are worth pursuing more aggressively.
Pros & Cons
- End-to-end lead generation solution
- Built-in CRM helps you prioritize lead follow-up
- Automated lead nurturing
- Mobile app accessible
- Top-notch customer service
- Predictive analytics is an add-on feature
- Not an option for agents who are not looking for a CRM
- Limited customization
- Steep learning curve
- No free trial
Pricing
- Pro: CRM with home and marketing reports, starting at $179 per month
- Pro + Leads: Everything in Pro package plus Social Connect, starting at $479 per month
- Pro + Framing: Everything in Pro package plus Smart Targeting, starting at $599 per month.
Revaluate: Best for buyer and seller readiness scores
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.
PropStream: Best for property valuation and market trends
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
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.
