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Market Data Matters


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slides from Mike Simonsen's presentation at real estate barcamp Virginia March 2009

Published in: Business, Technology, Real Estate
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Market Data Matters

  1. 1. Why Market Data Matters Now More Than Ever
  2. 2. Only Three Questions <ul><li>What’s for sale? </li></ul><ul><ul><li>IDX Search </li></ul></ul><ul><li>How much is my house worth? </li></ul><ul><ul><li>CMA </li></ul></ul><ul><li>How’s the market? </li></ul><ul><ul><li>This is your opening! </li></ul></ul>
  3. 3. When they ask, “How’s the market?” <ul><li>“ I want to participate, show me how I can/why I should?” </li></ul><ul><ul><li>They know the market is bad… </li></ul></ul><ul><ul><li>But how is it good for them? </li></ul></ul><ul><li>A “buying” signal </li></ul><ul><ul><li>Buying your services – they need an expert </li></ul></ul><ul><ul><li>Compelling to action – they want guidance </li></ul></ul>
  4. 4. Data Specific to Their Situation The high-end of the market is moving significantly more slowly than the low end
  5. 5. Sometimes the Data Counter-acts the Headlines In this market, the low-end (blue) is moving much more slowly.
  6. 6. Technique: The Data and The Story <ul><li>Q: “How's the market?” </li></ul><ul><li>A: “Depends on your market!” </li></ul><ul><li>Plan the story in advance </li></ul><ul><ul><li>Then find the data to support it </li></ul></ul><ul><ul><li>The story is your chance to engage </li></ul></ul><ul><li>Illustrate your expertise </li></ul><ul><ul><li>For example: Sellers into a “Buyer's Market”?, </li></ul></ul><ul><ul><li>Setting price, market time expectations </li></ul></ul><ul><li>Address their unasked questions - honestly </li></ul><ul><ul><li>What about the bubble? </li></ul></ul><ul><ul><li>Are we near the bottom? </li></ul></ul>
  7. 7. More Than Just a Price Trend <ul><li>“ Let me show you what I mean” </li></ul><ul><li>Setting seller expectations </li></ul><ul><ul><li>Percent Price Decreased: This is what happens to the over-pricers </li></ul></ul><ul><ul><li>DoM: here’s what we’re looking at </li></ul></ul><ul><li>Buyer off the fence </li></ul><ul><ul><li>Inventory: You’re in the highest-demand segment </li></ul></ul><ul><ul><li>Average vs. Median DoM: the best properties moving more quickly </li></ul></ul><ul><li>In the Yard Sign </li></ul><ul><ul><li>“ I sold this home in a week. Ask me how.” </li></ul></ul>
  8. 8. Setting Seller Expectations: Days-on-Market High end markets cooling faster
  9. 9. Comparing Areas: Ashburn vs.Sterling
  10. 10. Market Analysis by Price Level (“Quartile”) <ul><li>Quartile 1: Most expensive 25% of properties </li></ul><ul><li>Quartile 2: Top Middle 25% </li></ul><ul><li>Quartile 3: Bottom Middle 25% </li></ul><ul><li>Quartile 4: Least expensive 25% of properties </li></ul><ul><li>Example: 80 homes for sale in a market (city or zip code) </li></ul><ul><ul><li>4 &quot;quartiles&quot; (groups) each have 20 properties based on individual property prices. </li></ul></ul><ul><ul><li>Allows for market definition by price, not just geography </li></ul></ul>
  11. 11. Median Price Quartiles - Ashburn
  12. 12. How and When to Use The Data <ul><li>In person </li></ul><ul><ul><li>Listing presentation </li></ul></ul><ul><ul><li>With active listings </li></ul></ul><ul><ul><li>In the yard sign and open house </li></ul></ul><ul><li>In their inbox </li></ul><ul><ul><li>Newsletter </li></ul></ul><ul><ul><li>Part of your drip, one of your touches </li></ul></ul><ul><li>On the web, blog </li></ul><ul><ul><li>Prospecting, relationship & trust building </li></ul></ul><ul><ul><li>Lead conversion </li></ul></ul>
  13. 13. Strategies for Data on Your Site Soft Sell Hard Sell Blog Posts Dedicated Local Pages Chart Widgets Sample Reports Lead Form Call to Action Inform, establish expertise, reach Convert visitors to leads Goals: Presentation: Style: Personality, quantity High profile data, Fewer options Approach:
  14. 14. The Insightful Blog Post <ul><li>Links </li></ul><ul><li>Articles </li></ul><ul><li>Menus </li></ul><ul><li>Contacts </li></ul><ul><li>Lots of real value </li></ul>
  15. 15. The Strong Call To Action <ul><li>One page </li></ul><ul><li>Few links </li></ul><ul><li>No bling </li></ul><ul><li>Sign Up Here </li></ul><ul><li>(Also, real value, BTW) </li></ul>
  16. 16. Great Web Site Samples <ul><li>Blogs: </li></ul><ul><ul><li>“ Homes vs. Condos” – Dru Bloomfield </li></ul></ul><ul><ul><li>Selling a Home in Los Gatos – Mary Pope Handy </li></ul></ul><ul><ul><li>Price vs. Days-on-Market – Ginger Wilcox </li></ul></ul><ul><li>Local Market Pages - Jesse Brossa </li></ul><ul><ul><li> </li></ul></ul><ul><li>Lead Focused – John Harper </li></ul><ul><ul><li> </li></ul></ul>
  17. 17. Three Things To Remember <ul><li>How do you answer, “How’s The Market?” </li></ul><ul><li>Don’t look for expertise in the data, use the data to illustrate your expertise </li></ul><ul><li>They want the insights/statistics/guidance no matter how you reach them: web, email, print, face-to-face </li></ul>
  18. 18. Altos Research: Contacts <ul><li>Web: </li></ul><ul><li>Phone: 1-888-819-7775 </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>Blog: </li></ul><ul><li>Twitter: @altosresearch @mikesimonsen @scottsambucci </li></ul>