I’ve incorporated Predictive Analytics into my business to help Baby Boomers sell their Million Dollar Homes. Predictive Analytics is the branch of data mining concerned with the prediction of future probabilities and trends. The central element of predictive analytics is the predictor, a variable that can be measured for an individual or other entity to predict future behavior.
One of the leaders in the use of Predictive Analytics in Amazon.com; once you have created an online history of purchases Amazon will put what they feel your next purchase will be on your computer screen. It’s been theorized that Amazon’s predictive recommendations could have a success rate as high as 60 percent in some cases. What if real estate agents could capitalize on this same idea, and offer homes to potential buyers based on their past purchase history and anticipated needs.
Fourteen percent of all homeowners will buy a new home each year, whether they upsize or downsize is dependent on their age, life style and financial situation; all with some level of predictability.
The Baby Boomers are aging, they own 70% of the real estate in the United States, 9,000 of them are turning 65 everyday, they want to downsize or move closer to their grandchildren or the need the money in their current home to finance their retirement.
There are 142 homes in greater Birmingham for sale today for $1,000,000 or more, based on past sales between 67 and 82 of them will sell in the next year. Before you sign with any agent you need to read Best of US Homes Luxury Home Report. These are for the most part, the Baby Boomers selling their big homes with big yards and high maintenance.
“I'm applying Predictive Analytics to the marketing of my Million Dollar real estate listings in Birmingham, AL. I know that less than 1% of the population can afford my Million Dollar homes, I can identify who the 1% are, how long they've lived in their current homes and what they paid for their current home. I also know that 60% of the buyers in this price range will buy a new home within a three mile radius of their current home. This combination of data produces an algorithm that identifies a small list of potential buyers.”
This same system can help me identify, rank and convert the homeowners most likely to sell in my market. I have been able benefit from patterns and signals that go unnoticed to the naked eye but are easily identified by a smartly programmed algorithm.
Software giant Salesforce is doubling down on predictive analytics. CEO Marc Benioff said that varying industries are calling for smarter systems that help them strategically draw in, score, manage and convert leads.
This can be the huge shift going forward in the real estate business, which is that sellers are currently competing for the buyers in a shrinking buyer’s pool and by marketing directly to their identifiable potential buyers they increase their likelihood of selling their homes quicker and closer to their asking price. Thus by developing and using a smarter system that is based on predictive data those realtors using such a system will be able to offer a high level of service to their sellers.
But seller identification isn’t the only way that predictive analytics will move the real estate needle. The opportunities are truly endless and have the power to change nearly everything we know about business planning, intuitive follow-up, home search and broker recruiting.
If you’ve ever used Amazon.com or Zappo.com you’ve seen Predictive Analytics at it’s best. Zappo knows when you need new shoes before you do, they know your brand, color preference and the way your going to use your shoes.
Come by my website Grinkmeyer.com and you’ll see how I’ve also incorporate video, neighborhood scoring and featured listings into my marketing program.
Kerry Grinkmeyer is a real estate agent in Birmingham, AL specializing in the marketing and sales of luxury homes. Kerry's a retired financial advisor, he sold his firm, one of the largest in the Ameriprise Financial Advisor system in 2005 to his son, daughter and nephew. Now he's building one of the largest boutique real estate agencies that he'll eventually sell to his grandchildren. He the author of the children’s book The Christmas Web- A Family Christmas Tradition. Kerry competes in the Senior Olympics in to 50M, 100M and 200M dash as well as the 5k and 10k time trial cycling events.
Kerry offers you his financial background, knowledge of the community, love of business and family and energy to assist you in one of the most important financial decisions you'll make in your lifetime.
205 919 6006