In today’s fast-paced real estate industry, access to accurate and up-to-date data is crucial for making informed decisions. As the industry increasingly relies on digital platforms for market insights, a key concept that has emerged is data latency. In the context of PropTech (property technology), data latency plays a significant role in determining the quality, reliability, and timeliness of the information provided to investors, real estate agents, and property professionals.
In this blog, we will explore what data latency is, why it is vital in the real estate sector, and how it affects platforms competing in this space. Finally, we’ll compare four major real estate data platforms: Batchleads, Propstream, Dealmachine, and Privy, analyzing their performance in terms of data coverage, latency and related aspects.
What is Data Latency?
Data latency refers to the time delay between the moment data is collected or updated and when it becomes available for use in a system or platform. In the context of real estate, this could mean the time it takes for a property listing to be updated on a platform after a change occurs, such as when a listing is marked as “pending” or a property’s foreclosure status is recorded.
High data latency can result in outdated information being used for critical decisions, potentially costing users money or opportunities. Low data latency, on the other hand, ensures that data is as up-to-date as possible, allowing real estate professionals to make informed decisions based on current market conditions.
Why is Data Latency Important in PropTech?
In real estate, timing is everything. Whether you’re an investor looking for the next big deal, a real estate agent searching for the perfect listing, or a wholesaler needing the latest property status, data accuracy and freshness are vital. Here’s why low data latency is so critical in PropTech:
1. Maximizing Investment Opportunities
Investors often need to act fast when properties become available. High data latency can mean missing out on lucrative deals because the platform they’re using hasn’t yet updated the listing or market data.
For example, if a property is marked as “pending” but the data on a real estate platform is delayed, an investor could waste time analyzing an already-taken opportunity. The faster a platform updates its data, the better the chances are for investors to make timely decisions.
2. Accurate Property Valuations
Property valuation is a delicate balance that relies on current market data. If a real estate platform has high latency and offers outdated information on property sales or market trends, valuations could be off by significant margins. This not only affects investor confidence but can also lead to improper pricing strategies for agents and sellers.
3. Reducing Risk
For buyers and sellers alike, data latency poses a risk. Buyers could end up purchasing a property that is no longer available or has gone through a significant price change. Sellers, on the other hand, might lose out on potential buyers if their property’s status or details aren’t updated in a timely manner.
4. Improving Customer Trust
Real estate professionals depend on their chosen platforms to provide them with the latest data. A system with low data latency builds trust, ensuring that professionals can rely on accurate information when making deals, scheduling showings, or managing portfolios. Platforms that consistently lag behind in updating their data can lose user confidence and market share.
Evaluating Data Latency Across Major Real Estate Platforms
At Batchservice, we regularly test our data against industry competitors and underlying data vendors to understand our data better and optimize it to maintain our competitive edge. In a recent test, we examined several key metrics to measure the latency and accuracy across major real estate platforms.
Below, is a consolidated table where we examine Batchleads, Propstream, Dealmachine, and Privy against the benchmark MLS data to see how latency varies across each platform for several critical categories. We have included an individual inference of each of the metrics used, how it’s compared and ultimately our findings.
MLS Active Latency
Access to the most up-to-date listings is critical for investors and agents. Batchleads leads the category, capturing 96% of MLS active listings within 24 hours, giving users nearly instant access to new properties. Privy follows closely at 90%, while both Propstream and Dealmachine fall far behind, each capturing only 4% of active MLS listings within the same time frame.
How is up to date MLS Active data beneficial to an investor or agent?
- Act Quickly on New Listings: Up-to-date active listings allow investors and agents to seize fresh opportunities before competitors, enhancing the chances of securing deals.
- Tailor Marketing Efforts: Agents can target newly active listings with strategic marketing campaigns, reaching potential buyers at the optimal time.
- Stay Competitive in Hot Markets: By staying informed of the most recent listings, real estate professionals can adjust pricing, negotiations, and offers to stay competitive in fast-moving markets.
MLS Pending Listings Latency
The speed at which platforms reflect pending status changes is vital for users avoiding already-claimed properties. Batchleads captures 95% of pending changes listed in MLS within 24 hours, while Privy performs well with 86%. Propstream and Dealmachine, however, fail to register any updates in this category, each sitting at 0%.
How does up to date MLS Pending Listings help an investor or agent?
- Offer Backup Offers: With accurate pending listings, investors and agents can approach sellers with backup offers in case the initial deal falls through, positioning themselves as a second option.
- Analyze Market Trends: Up-to-date pending data helps assess how quickly properties are moving in specific areas, guiding pricing strategies or determining hot markets for investment.
- Prepare for New Listings: Monitoring pending listings allows professionals to anticipate when a property might re-enter the market if a deal fails, giving them a competitive edge.
MLS Canceled & Expired Latency
Timely updates for canceled and expired listings prevent wasted efforts. Batchleads once again shows superior performance, updating 85% of canceled or expired MLS listings within 24 hours. Dealmachine follows with 55%, and Propstream with 47%, both performing better than Privy, which only managed 25% in this category.
How to capitalize up to date MLS canceled & Expired listings?
- Target Motivated Sellers: Reaching out to sellers whose listings have expired can present opportunities to offer alternative selling strategies or investment deals.
- Re-List Properties: Agents can approach homeowners with canceled or expired listings to offer their services, helping them relist and market the property effectively.
- Negotiate Better Deals: Investors can use up-to-date canceled or expired data to find motivated sellers who may be willing to negotiate better prices or terms after their initial listing didn’t succeed.
Bedroom Count Comparison
Accuracy in property details, such as bedroom count, is a key differentiator. Here the source of truth is Batchleads core data across the top 50 counties compared to the competitors and hence mentioned as 100%. Dealmachine captured 92% of the data compared, while Privy fell short at just 0.06%, barely registering complete data. Propstream did not provide bedroom count data.
Bathroom Count Comparison
Just like bedroom count comparison above, Batchleads core data of the top 50 counties across the counties are compared to others in terms of bathroom count accuracy, Batchleads captured 100% of the data , leading the category. Dealmachine followed with 87%, showing a strong performance, while Privy lagged at just 0.05%. Propstream again did not provide relevant data for this comparison.
Importance of accurate bedroom and bathroom counts for investors
- Property Valuation: Accurate bedroom and bathroom counts are essential for correctly estimating a property’s market value, affecting appraisals, listing prices, and offers.
- Targeted Marketing: Realtors and investors rely on precise data to target the right buyers or renters, particularly those looking for specific property sizes or layouts.
- Informed Investment Decisions: For investors, accurate bedroom and bathroom counts help assess renovation potential, rental income, and overall investment viability, ensuring better decision-making.
Assessor & Recorder Data Latency
When comparing how quickly platforms update ownership records, Batchleads demonstrated 99% accuracy in reflecting assessor and recorder data within 24 hours. Propstream followed at 82%, while Dealmachine trailed behind at 69%. Privy fell further with 48%, reflecting slower updates in property ownership changes.
Why is it important to know up to date Assessor & Recorder data?
- Accurate Ownership Details: Up-to-date data ensures accurate verification of property ownership, reducing the risk of errors or legal issues during transactions.
- Timely Insights on Property Changes: Frequent updates on changes like ownership transfers or tax liens help investors act quickly and adjust their strategies accordingly.
- Informed Property Valuation: Current data provides the latest insights into property characteristics and financial history, enabling more precise property appraisals and assessments.
Pre-Foreclosure Data Latency
Pre-foreclosure data is crucial for investors targeting distressed properties. Batchleads captured 73% of pre-foreclosure properties as of September 2, 2024, well ahead of its competitors. Dealmachine followed at 51%, Privy at 50%, and Propstream at 48%. Platforms with lower latency may result in missed opportunities, especially for users relying on real-time pre-foreclosure data.
Why is it important?
- Timely Acquisition: Access to current pre-foreclosure data helps investors identify distressed properties early, providing a head start in negotiating or purchasing before others.
- Informed Decision-Making: Updated data ensures real estate professionals can accurately assess the property’s financial situation, preventing reliance on outdated or incorrect foreclosure statuses.
- Minimizing Risks: Staying current with pre-foreclosure updates helps avoid missed opportunities or pursuing properties that have already moved out of pre-foreclosure or into foreclosure.
Conclusion
If you have read till now, you know that lower the latency, better the chances for a profitable deal. Latency can be the difference between seizing an opportunity and missing out in the real estate space. Irrespective of your choice of which platform to use, ensuring that it provides the freshest, most accurate data is crucial for making informed decisions, minimizing risk, and capitalizing on market opportunities.
