The best local real estate database has both property data & local real estate growth data and real estate forecasts. In the beginning. It all starts with good data, and a good real estate database. Real estate investing, like many other ways of wealth creation, is based upon those with the best strategy, and tactic, and tools win and prevail.
History is littered with past failures and under-water homes, but those who win, the Donald Trumps of the world use the best tools and real estate database. Comps and the real estate databases. Comps may indeed have been the standard for the entire industry when it comes to current value determination, but if there is one thing that the current housing crisis has taught us is that comps
Comps don’t always get it right – Current Real Estate Trends Do.
Today, in 2018, you can have a Real Estate Contact Management Database, Real Estate Contact Database, but still no online technology has a real time local real estate database and critical local real estate growth data.
Sort of surprising when you think about it, since so much of real estate is local.
Traditional comps used in standard appraisals fail the second prerequisite because they do not fully represent all of the variables that affect value determination and future price movements. Comparable properties have inherent challenges when it comes to using them to determine value of a similar property. For example, the comparable properties could be over-priced, leading to an over-valuation of the property in question.
Current Local Real Estate Growth Data and a local Block Group real estate database variables
Affordability is itself an index compiled from a host of factors that relate to the cost of living for a specific area. Just like Quality of Life (QofL) indexes which are combinations of multiple factors and variables.
One factor that can destroy income grown and diminish purchasing power and real estate prices is an exorbitant cost of living. Specific factors that need to be monitored include inflation, tax rates and other income-diminishing variables.
New Business/Recent Changes in Local Real Estate
The entrance of new business into a community typically means more jobs and a greater need for housing, which tends to drive prices upwards with the opposite also being true. The ideal real estate tool would take into account recent changes in new business and therefore effectively project price movement in the future.
A core component of any local real estate database. Employment and Recent Changes. You can see the pattern here. Almost any economic factor, be it on the micro or macro level, is relevant to value determination and forecasted value.
And any quality Real Estate Databases has this and more.
Median Income Growth –
The average median income growth level of an area (be it macro or micro but most noticeable on micro level) will have a strong correlation with property values. The latest monthly updated Median Income Growth at the Census Block and Census Tract are Strong Leading Economic Indicators.
Vacancy Rates/Recent Changes
What do high vacancy rates typically signify? Either the area is overdeveloped or for some reason, it has become easier to purchase in the area than it is to rent. Either way, vacancy rates will provide another picture of a specific market, but they must be compared to other variables in order to isolate their cause and determine the true effect.
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