Most real estate pros develop a niche and craft marketing campaigns to reach out to potential clients. Recent real estate sales data helps real estate agents select a viable niche. Updated data reveals what your target market wants so you can answer their questions and fulfill their needs. Learn how to use this information to corner your target market and increase your earnings.
Be Aware of Demographics
Generalized sales data is broken down by various factors, such as demographics. This data describes the local population including income, population growth, migration patterns, gender, race, and age. The United States Census Bureau and local government offices provide significant demographic statistics that are helpful to agents. Demographic shifts influence real estate pricing and the types of properties sold. Knowledge of current demographics helps real estate agents reach out to the right target market. For example, baby boomers may be leaving a specific neighborhood to seek retirement housing elsewhere. Millennials might be interested in buying these homes. And some of these houses might be competitively priced fixer-uppers. Agents can focus on listing homes for boomers and selling them to millennials.
Where can you find this data? Check with your local Chamber of Commerce and Board that you belong to.
http://www.city-data.com/ gives basic demographic information at the city level
United states census info can be found here: https://www.census.gov/newsroom/blogs/random-samplings/2013/12/discover-your-neighborhood-with-census-explorer.html
Search on www.realtor.org and you can find reports like these as well as infographics
Check the Health of the Economy
The health of the economy affects the value of real estate. Employment data, the cost of goods, GDP, and other factors measure economic health. A sluggish economy often slows down the sale of real estate. An increase in disposable income may increase the sale of real estate. And conversely, real estate also helps people predict future economic trends. According to Time, housing and related spending associated with buying a home (such as remodeling, renovation costs, and utilities) represent about one-sixth of the United States GDP. People always need housing and jobs. Focus on selling homes in areas where employment is available. Consider marketing more rental properties to people in transition. Learn about marketing short sales and foreclosure properties. Work with lenders and lawyers who are knowledgeable about different approaches such as renting with the option to buy.
NAR claims 30% of sales last year were second homes, vacation homes and investment properties. Their course RSPS is a great starter course to understand this market
Join your local plannning and zoning meetings to find out what type of opportunities are coming into your community.
SWOT and PEST Analysis
Smart real estate agents depend on detailed market analysis to determine the dynamic of their target market. SWOT and PEST are two strategic tools used for this analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. And PEST is an acronym for Political, Economic, Social, and Technological. SWOT categories help REALTORS® determine the positive and negative aspects of a local area. A real estate agent marketing to families can find homes located near a respected public school. However, families might be reluctant to purchase a house in a high crime zone. PEST defines the external influences and how they affect the real estate industry. For example, government policies and subsidies may encourage specific types of buyers and sellers.
I have never seen agents use a SWOT in their market or business plan. Teams, or subdivisions or commercial properties, yet, we can barely get people to do business plan. I would reword this
Evaluate Housing and Real Estate Statistics
Successful real estate professionals continuously evaluate current housing and real estate statistics. Find out national and regional existing home sales prices and volume statistics. Review the pending home sales index. Measure housing affordability based on income and active inventory on the market. Look for generational trends of home buyers and sellers. Check the financial outlook for residential and commercial properties. All of this information is readily accessible through the National Association of REALTORS® (NAR). It only takes a few minutes to read updated research reports, and this information is invaluable to determine the best target market for future marketing campaigns.
NAR supplies many of these reports on their site such as:
Profile of todays homeseller and home buyer
Various commercial and luxury reports
Other reports to consider:
The Knight Frank Wealth Report
NAR Investment and Vacation Home Buyers Survey
Global Luxury Real Estate Report
In-House Research and Analysis
Along with external research, an internal analysis is eye-opening. In-house real estate sales data determines what works and areas that need improvement. It also shows patterns and trends in the local real estate market. Study seller transaction data for the past year including sale-to-list price, days on the market, and seller concessions offered. Consider whether specific properties were overpriced or if the marketing campaigns were effective. Determine where the business comes from while reviewing buyer transaction data. Find out if the most leads come from past clients, referrals, social media, PPC marketing, online leads or other resources. Review the length of time from the initial inquiry to the date of closing. Analyzation of this data helps REALTORS® improve in-house processes to resonate with their target market.
Going Beyond Sales Data
After analyzing real estate sales and industry data, check the business social media accounts. Twitter and Facebook provide useful analytics to define your target market further. These details help real estate pros hone innovative campaigns based on interest and age per recent sales data. Knowing who follows the business and what they are doing online helps define the mindset of potential buyers and sellers.
Always check the recent real estate sales data before developing a marketing plan. With the right info, real estate agents attract their target market and exceed its expectations.