“The importance of accurate home value”
By Marc Sabatini, SVP Business Development, AnalyticsIQ, Inc.
When you are in the market for clean and accurate data (the foundation of any good marketing program), Home Value plays a vital role in the quality of the data you use to market your product or service to customers and prospects alike. You may think that Home Value is only valuable when it comes to financial services marketing, but keep in mind:
- Disposable income, Discretionary Spending, Net Worth, and Credit Risk are highly correlated to Home Value as well as the change in Home Value over time. High initial response rates to marketing programs are useless if they do not have the ability to qualify or afford your offer (i.e. mortgage, insurance, retail, investment). Furthermore, determining which hand-raisers or targets will convert ultimately comes down to economics – can they afford to buy or do they need your help. For the vast majority of the US households this comes down to accurate Home Value and the change in Home Value over time.
In the continuously fluctuating housing market, Home Value has been one of the most difficult data elements to accurately track and predict. Over the past 5 years, Home Value has been one of the data points that has either made or broken marketing campaigns….mostly broken. Since Home Value is a major contributor to loan-to-value ratio and debt capacity ratio, many marketing programs have been missing the mark due to inconsistent and faulty data.
Many of the major data providers have been crippled in their data compilation efforts by not being able to update or provide accurate home valuation statistics due to a variety of factors; staying on top of the rapidly changing real estate market, monitoring and applying changes at the neighborhood and county levels, and the lack of commitment to acquire and maintain the necessary resources.