In our uber-competitive real estate world, you must source, know, manage, and use data. This article debunks many data myths by exploring the “what, why, and how” of data management for Realtors(R).
The Backbone of Your Business
Real estate data comes in many forms and from various sources. It flows daily through a complex network of platforms and tools and, if accurate, it should keep you informed about the state of the market and connected to potential customers and referral sources. It is compiled from economic and real estate activity data on the one hand, and neighborhood, interest groups, and personal data on the other.
Data Categories
Real estate professionals primarily engage with two data categories: market data and people data. Market data ranges from hyper-local to nationwide and encompasses statistics: property prices (listing, sold, or per square foot) and property details such as square footage, year of construction, bedrooms, and baths. Additionally, it includes neighborhood specifics like days on the market, turnover rates, and available units. For the well-informed, it also includes peripheral data such as construction permits, rental and mortgage rates, demographics, and in-and-out migration patterns. Proficient understanding and interpretation of market data empower you to help buyers and sellers make informed real estate decisions.
People data consists of names, addresses, phone numbers, and emails, along with relationship information, birthdays, anniversaries, and transaction histories for past clients. Effective management of people data informs marketing and communication strategies, ensuring efficient resource allocation.
Data Formats
Data, in all its variations, often originates as rows and columns in Excel or CSV (Comma Separated Values) files, a format that enables data sharing across various applications. You can, for example, export contacts from your mobile device and upload them to your CRM (Customer Relationship Management) using Excel; and you can transfer data from MLS statistics programs like TrendGraphix and Rapattoni MLS Statistics to Word or PowerPoint to create listing presentations. Excel is the only tool that seamlessly connects all the platforms you use, rendering it indispensable to your business.
Data Sources
Regardless of your objectives, you will either manually create Excel or CSV files or generate them through exports from MLS, CRM, or other repositories. Sourcing people and market data entails research, often utilizing multiple sites, and accessing any number of databases.
Market data sources include your MLS, your local associations, city and county tax assessors, building department records, your state association, and NAR’s economic research files. People data, on the other hand, is derived from personal contacts, public records, private data services like Vulcan, and lead generation services such as BoomTown or RedX. Once data is exported from these various sources into an Excel spreadsheet, it can be analyzed to convey market insights; segmented for targeted communication; or uploaded to an application for further processing.
Utilizing Market Data
Picture this classic situation: you’re aiming to get a listing at the price at which it will sell but your customer is stuck on asking for what he needs to be able to move. How do you help him get a grasp of current market realities? This is where data analysis comes to your rescue. By extracting and analyzing metrics from MLS exports to Excel, you can provide evidence-based conclusions, incorporating relevant property metrics and presenting findings visually for clarity.
People Data: Your Real Estate Network
Your business thrives on relationships. Maintaining and leveraging “people” data, typically stored in CRM software like Follow Up Boss, Top Producer, Daylight, Contractually, or Moxiworks, facilitates informed decisions, streamlines communication, and optimizes marketing strategies.
While CRMs are essential for cultivating relationships, Excel is the mechanism you must use to transfer CRM data to other applications and people -your bulk mailing house for example, bridging the gap between your central data hub and peripheral systems.
Excel and Effective Data Management
Mastering data management is a foundational skill in most industries, and real estate is no exception. It’s probably truer in real estate than in other environments. When harnessed effectively, a sound data strategy can become the bedrock upon which you build your business. Whether you’re pricing homes, crafting compelling offers, or nurturing client relationships, Excel’s versatility empowers you to extract maximum value from market and people data. It is, without a doubt, the go-to tool for navigating the complex data landscape across various sources, applications, and platforms.
Watch for our Excel For Realtors™ Training Videos Coming Soon. In the meantime, If you have questions about your data management and use plan, please call or text (239) 220-1018.
