I am a big fan of client servicing portals that leverage full MLS data rather than IDX data. The key here is that the consumer can see the full compliment of business intelligence powered by the MLS. Clearly, days on market, price changes over time, and recent sales history in the area are the fundamental elements of understanding listing price.
Market Analytics are really helpful in informing predictions on what will happen in the near term for hyper local markets and hyper refined property attributes. If days on market for a 2 bedroom condominium in a building in San Francisco is 8 days; and three identical units have sold in the past 2 weeks – you can predict that the new listing in that building is also likely to sell in 8 days – especially if the listing price of the condominium unit is within the boundary of the list to sale price of comparable units.
Consumers need to know this information and agents need to be able to share it with buyers dynamically. The technology exists, but it is off in a product silo that consumers cannot access.
There are plenty of companies that have analytic solutions that show pricing and market velocity (here is a list), but for illustrative purposes, I will reference Pricing Analysis which is a component of Terradatum’s AgentMatrix product, also known as Clarus Resource in California.
Pricing Analysis uses the full compendium of MLS data facts to predict days on market for a particular property at a particular price. It is astoundingly accurate. Comparable homes pricing below the market sell in fewer days on market. Comparable homes pricing above the market take longer to sell. (note: Terradatum has proven that homes initially priced high are more likely to finally close for prices below the average).
Every day, millions of listing alerts are sent from real estate professionals to consumers. These consumers have enrolled in automatic notifications that inform new listings and updated listings (like price changes).
It would truly be a beautiful thing if these listings alerts said something like “Based upon data from the MLS, this property is likely to sell in ____ days.” Click here to see market data that explains why.
Let the race begin to develop this functionality. Here is my prediction. Realtor.com, Zillow, and Trulia will have this feature available to the public faster than any other company. Listingbook will roll it out before any MLS vendor.
I agree with need for the analytics you are suggesting.
I agree, this is a great tool and gives the agent some sure footing when we price a place as the date will show it in a visual from a 3rd party.
I could not agree more… the MLS should be one step ahead of the competition…. This kind of program would ideally spell it out for the consumer…. nothing rings truer than actual numbers.
Really informative post.Really looking forward to read more. Will read on…