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Local knowledge is power

Lisa Isaacs explores how you can use local knowledge to bring power to your proposition, prospecting and professional reputation.

Lisa Isaacs

Link to Property Data feature

In 2017, The Economist claimed “the world’s most valuable resource is no longer oil, but data” and although arguable in today’s climate, there can be no doubt that utilising data is intrinsic to business success. In agency land, local information should be as integral to your pitch as your fee. From retrospective price analysis to future trend forecasting, data that’s generated by the agent can be combined with information held in the ether to win new business and improve service levels.

Data uses are limitless. Get to know your client then deliver them tailored information – reassure sellers that your valuation is accurate, convince landlords that they’re buying in a high yield area and educate buyers ahead of a lifestyle relocation. What’s more, today’s powers of persuasion don’t rely on agent-based anecdotal evidence but are derived from independent, third-party data for genuine authenticity.

Here’s the rub. There are hundreds of data points and sets to monitor, from Land Registry to Royal Mail, plus there’s data filtering into branches on a daily basis via online capture forms. Most agents don’t have the time to distil all the facts and stats needed to come across as the ‘local property expert’ but fear not. There are multiple number crunchers, fact gatherers and prediction professionals whose job it is to build the algorithms and refine the data noise to provide agents with the local area guides, comparable properties, graphs, charts and heat maps clients have come to expect.

Local information can be loosely segmented in three areas – past data, present data and future data – each playing its part in the home moving lifestyle. The Negotiator explores the role of specific local information in relation to your client base.

Past data

If clients are so focussed on future outcomes, is there any worth in knowing about the past? It’s an emphatic ‘yes’ when it comes to valuations and courting new business. Agents are frequently pitted head-to-head and when it comes to the age-old advice of ‘inviting three agents in’, they’ll sit on the same sofa and probably deliver a similar spiel. So, what marks one agent out over others?

Link to Property Data featureRory Black at Dataloft feels the difference can be the degree of local knowledge. “In this year’s Property Academy Home Moving Trends Survey, the top three reasons for choosing an estate agent included: ‘They had good market knowledge’ (71%) and ‘I liked and trusted them’ (67%).

Agents who consistently share local market insights that are relevant to their audience will give themselves a better chance of being considered as the appointed agent. Rory Black Director, Dataloft inform.

This stems from a client’s ability to trust an agent, and demonstrating knowledge instils confidence. Being able to illustrate sold prices for similar homes and whether transactions levels are rising or falling shows an agent has its finger on the pulse – people love a property statistic, especially if it relates to where they live.

“We have found the agents who consistently share local market insights that are relevant to their audience will give themselves a better chance of being considered as the appointed agent, as well as build trust in their brand,” says Rory.

Subscribers to Dataloft Inform can choose from six fully-populated reports covering sales, lettings and new homes. Market reports can be taken to valuations to add an extra layer of professionalism, emailed, made available online or posted on social media.

“The challenge is how to make sense of the considerable overload in property’s ‘data space’. As many people say, ‘data is the new oil’ but it’s essential that it’s refined properly. Subscribing to a platform like Dataloft Inform takes away all of that pain and saves considerable time and money.”

Link to Property Data featureMatt Gilpin from Sprift is quick to agree that local area information and trust form a winning combination. “Homebuyer surveys regularly rank trust in an agent higher than fees, and our agents tell us that the quickest way to gain trust is to be knowledgeable about a property and the local market. On average, Sprift helps agents win 25% more instructions, when comparing valuation success both with and without Sprift reports.”

Surveys regularly rank trust in an agent higher than fees … the quickest way to gain trust is to be knowledgeable about a property and the local market. Matt Gilpin Founder & CEO, Sprift.

Upfront information is definitely a buzz phrase for 2022 but sometimes we have to look back to plan for the future. The historic yet valuable information contained in Sprift’s reports help build a concise picture. Recently sold prices are excellent for managing vendor expectations, while detailing past incidents of flooding and the planning history show the type of transparency that builds trust. “Ultimately, better informed buyers are more committed clients, so the more information that can be provided upfront, the better,” concludes Mat.

Link to Property Data feature

Present data

Link to Property Data featureWe have evolved into a generation that needs instant gratification and this is evidenced by Michael Dent at PropertyData. “We are seeing a steady and continuous increase in homebuyers using our system directly, even though it is not necessarily designed for them. It is clear there is a real and growing appetite for data from the general public.”

We are seeing a steady and continuous increase in homebuyers using our system directly, even though it is not necessarily designed for them. Michael Dent Founder & CEO, PropertyData.

If this wasn’t enough reason for agents to start commissioning their own bespoke reports, an agent’s reputation is: “In a highly competitive market, live real-time information adds an edge and helps ensure agents look professional and up-to-date. It can also help them charge a fee premium rather than just compete in a race to the bottom.”

As well as PropertyData’s real-time pricing analysis and local area comparable properties, its reports cater for even the most niche of clients. Yield hotspots, growth zones and vendors looking for cash buyers can be identified for investors and landlords, while purchasers with very specific requests can be served ultra-relevant reports, as its possible to trawl for chain-free properties, corner plots and even homes with an annexe, among a myriad of other property nuances.

Link to Property Data feature

Link to Property Data featureLocal area information is just as important as number crunching, especially in a market where many buyers are still on their relocation journey. Chris Winfield at Swiftcomplete says home movers are demanding more specific information about their chosen area than ever before – particularly when they’re researching new locations.

Home movers are demanding more specific information about their chosen area than ever before – particularly when they’re researching new locations. Chris Winfield Founder, Swiftcomplete.

Swiftcomplete automatically creates written content using nothing more than a postcode, the number of bedrooms and the property’s attachment. Core details, such as distance to public transport, proximity to leisure facilities, location in relation to major hubs and nearby healthcare providers, are pulled instantly and Chris says it’s an amazing time-saving facility, especially when the API is embedded into an agent’s website or CRM software. This pre-population leaves agents free to add their granular local knowledge when it comes to listings – the everyday details that impress, such as off-road routes dog walkers or the best restaurant for vegan food, for instance.

Future data

Knowing which homeowners are going to sell soon is one of prospecting’s sweet spots but until they develop a reliable crystal ball, agents have to rely on other methods. Forecasting is a rapidly developing area in agency, with companies including TwentyEA using a combination of machine learning and traditional analysis techniques to predict the likelihood that someone is going to sell.

Link to Property Data featureTwentyEA’s ‘Forecast’ model accurately predicted 81 per cent of all instructions in the last six months of 2021 and is currently generating over 40 per cent of valuations for one of its largest clients. “We take the guess work out of off market prospecting, saving our clients time and money by ensuring that they only target potential vendors who have a high propensity to move,” says the company’s Katy Billany.

We take the guess work out of off market prospecting, saving our clients time and money by ensuring that they only target vendors who have a high propensity to move. Katy Billany Executive Director, TwentyEA.

Traditional data, such as how long someone has lived in a property and whether a sale has recently fallen through is combined with more lifestyle factors and data points that may increase someone’s likelihood of moving, such as the birth of a baby or a recent divorce.

“Agents can run direct mail campaigns to the identified Forecast audience as our Prospect tool automatically prints and posts bespoke letters or postcards on their behalf,” adds Katy.

Link to Digital Marketing featureIdentifying future sellers is one point but what if you can’t win new instructions because sellers are unsure about the lack of stock? Homesearch, the creator of mobile-first and interactive buyer, seller, landlord and general market reports, is working with agents to help win business where an onward purchase is a concern. Sam Hunter says an agent can be more proactive in a competitive market when the pool of available properties is small, coming across as an agent going above and beyond to help: “Using data effectively has many benefits but one real USP is being able to help prospective sellers in their own home search.”

Our clients are already doing this with massive success in terms of both winning that initial instruction and generating new business from the direct mail. Sam Hunter Chief Operating Officer, Homesearch.

Sam goes as far as saying agents should be telling prospective buyers that they’ll canvas homes in the dream location on their behalf; “It’s what the majority of our clients are already doing with massive success in terms of both winning that initial instruction and generating new business from the direct mail.” The whole process is seamless for agents subscribed to Homesearch Pro as they can send targeted direct mail to any on or off-market address – with a narrative that there’s a buyer waiting – all in a matter of minutes direct from the company’s dashboard.

Lettings

Heather StaffCanvassing for new landlords is a different proposition altogether but it’s a valuable exercise post Tenant Fee Act. “While most agents typically focus on vendor prospecting, our data shows that prospecting for new landlords often offers a higher lifetime value than a returning sales client,” says Spectre’s Heather Staff.

We’ve found that the two most effective letters for starting a conversation come during a void period or after the agent failed to increase rent between tenancies. Heather Staff Founder, Spectre.

So how do you find out who owns the buy-to-lets in your area and when the best time to contact them is? Spectre’s Land Registry integration allows agents to purchase the title deeds of a rental property and attain the landlord’s name and address – the valuable information needed. Alternatively, agents can utilise their own contacts by uploading their database into Spectre.” Data matching is the next step, when landlord details are married with properties currently being advertised to let and properties currently occupied with estimated tenancy renewal dates. With these details, direct mail campaigns can start at optimal points when landlords are most likely to switch agents. “We’ve found that the two most effective letters for starting a conversation come during a void period or after the current agent failed to increase rent between tenancies,” adds Heather.

Physical contact

Link to Property Data featureSourcing and channelling the data is one thing; transforming it into engaging material to convey the message, is a further challenge. Ravensworth has worked with agents for many years, providing bespoke printed materials, from point of sale in the offices to leaflets and customer magazines, so they understand what it is effective. For many agents, printed materials remain their mainstay, so to work the two together makes sense. This is illustrated by Ravensworth’s broadening of their services. Managing Director Graeme Edwards commented, “We’ve seen a rise in the number of agents who are asking us to create graphics and animations to help get their local property knowledge across on social media. When combined with a strong printed campaign, a multichannel approach will have more of an impact.

We’ve seen a rise in the number of agents who are asking us to create graphics and animations to help get their property knowledge across on social media. Graeme Edwards, Managing Director, Ravensworth.

He added, “A quality piece of print marketing speaks volumes about your agency and is a welcome change in today’s digitally-driven society. In fact, a study by Royal Mail found that receiving print marketing in the post makes 57 per cent of people feel more valued, with its physical quality reflecting the care and effort that went into sending that message.

Nothing new?

Using local property data is exactly what agents have always done – in fact it’s their bread and butter, so none of this is alien or new – what is new is the technology behind it, to filter and package that information and the means to deliver it. The agent that embraces that, will be the one who wins the instructions.

May 12, 2022

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