Real estate sales data can get be a real differentiator when it comes to convincing buyers you are the right choice for them in a market where inventory is tight.
Sure, buying a home is a tough ordeal for anybody. It can be gut-wrenching for new home buyers. Even experienced home buyers will suffer agita when trying to decide on a home, especially when they have moved up in the marketplace and the homes are now in the high six-seven figures compared to the 100,000s when they first became homeowners.
Now, put all that anxiety into a situation where the market is hot, hot, hot, inventory is scarce and people are pricing homes in “you got to be kidding me” range.
Financial guru Dave Ramsey points out just how hot it is. According to Realtor.com, in February 2018 homes were selling 8% quicker than the same time last year. Homes are generally selling a week faster than last year. In that same period, the increase in listing prices jumped 10%.
That can be nerve-wracking for a first time home buyer. Frankly, this market can be aggravating for any buyer.
Real estate sales data makes you an expert
Ramsey recommends searching for the right agent who can negotiate an acceptable deal. A “neighborhood expert” so to speak.
Problem is, as he points out, many agents will claim to be the “neighborhood experts.” After all, there is no award for this type of expert or certification. Because it’s hard to close sales when inventory is low, Ramsey points out some agents will run to the other side of town and boast, “Sure, I’m very familiar with this market.”
Well, in this day and age, talk may be cheap, but with internet technology, it can be verified very quickly.
Don’t think for a second that people aren’t going to jump on their iPhones or their laptops to go peak behind the curtain at your website and just see how much of a neighborhood expert an agent really is.
They’ll check listings. They will check testimonials. They will, well, check everything.
Here’s where real estate sales data can make a big first impression.
Imagine if Mr. and Mrs. Scared Home Buyer really want to move into My Favorite Neighborhood.
Problem is, so do many other Mr. and Mrs. Home Buyers.
This is not going to be an easy decision for them, especially when the prices of homes in that desired area are really pushing the envelope.
One strategy an agent can use is to show the young couple the massive amount of hyper-local real estate sales data they have on their website about My Favorite Neighborhood.
Imagine how impressed they will be when you not only show them the few listings that are there, but also all the relevant information they need to make an informed decision.
Hundreds of in-depth datasets are available
That detailed information could include:
- School data – school rankings, enrollment figures, student/teacher ratios
- School district boundaries
- Recent home sales
- Property sale trends
- School attendance zones (as you know, these can move all over the place)
- Cost of living indices
- Points of interest such as the Whole Foods only 1.5 miles from the neighborhood or the park down the street.
Certainly, this will be of interest to them as they consider this difficult decision.
Then there’s the whole idea of price. When prices are high, buyers will appreciate any help they can get to a)negotiate a reasonable price or b) justify the price they are going to have to pay
That’s where actual real estate sales data, not a few reassuring words, can be extremely helpful.
Add a Home Value Estimator Tool
For example, use a Home Value Estimator Tool.
Show the couple how the home compares to other properties in the area for these factors: total square footage; age of the house; price; price per square foot.
The algorithm will show comparisons in percentiles. So perhaps the data shows that this particular home is in the lower 30% for homes priced in that area. Hmmm, could be a bargain.
Or, maybe the computation reveals that this is one of the larger properties in the area – again, might be a deciding factor that helps a consumer make a choice.
Conversely, the agent can use this data to show sellers that perhaps they are priced out of the market, or not asking a reasonable price based on comparables.
The point is this. An agent can pretend to be a “neighborhood expert” or a savvy agent can offer to show all this data as proof that they are truly the agent who knows this neighborhood.
There’s hype and there are facts.
Home Junction’s real estate sales data provides a plethora of factual data that puts an agent in a better position to persuade home buyers they are the best choice to represent them.