Knowing the neighborhoods
Rebecca Jensen, president and chief executive officer at Midwest Real Estate Data, or MRED, recommends that agents get familiar with the data connected to their markets. She recently attended a conference where a speaker explained how to deal with clients who attach too much meaning to the Zillow Zestimate on their home.
“His response was that every market is different,” she says. “Make it clear that you’re an expert in your neighborhood, that a number of factors can contribute to [market disparities] and trends in that area are down.”
Agents must arm themselves with stats and information because consumers are doing the same. “It’s a good thing consumers are getting up to date on all of the different factors,” Jensen acknowledges, “but they don’t necessarily get the whole picture from reading the newspaper or something else.”
MRED provides numerous reports for agents and brokers to use as they get better acquainted with their markets. The Market Statistics Package contains data on prices, supply and demand, and market dynamics, along with other vital information to help agents stay on top of their area. The data comes from brokers, though some third-party figures are included; MRED gives its customers the flexibility to interpret it as needed.
The big data phenomenon itself may be recent, but the data pool reaches back generations.
“We’re the largest MLS in Illinois and one of the largest in the country, especially by listing size,” Jensen says. “We have a lot of data that’s been sent into our platform for decades. MRED provides some tools, but we also provide raw access to our data so that our brokers can use their own tools. They can slice and dice in ways they find interesting.”
Karp uses MRED’s data and Infosparks tool to create her own reports for clients. The MLS data is the most current and the tool makes it easy to customize reports.
“Suppose I’m talking to a seller in Highland Park,” Karp says. “I have a chart that I can share with them that shows the median and average prices for homes in Highland Park going all the way back to 1980.” Then Karp can fast forward the present: “It can at least give them a visual of where the market is. Sometimes it’s a happy story and sometimes not.”
Much of the portal-based data comes from the same sources or source types; sales information comes through local MLS services, for example. Maps are ubiquitous, and many feature multiple layers that reveal statistics related to crime, walkability, schools and even job opportunities. Municipalities such as the City of Chicago offer public-facing portals with mapping tools that allow users to add data-rich layers that cover zoning requirements or restaurant inspections.