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Realeflow, a software company that applies AI-backed predictive analysis and machine learning to identify seller activity, has released a new version of its Sellability Score AI model, Inman learned in a Feb. 27 press release.
The company said its software, now in its 11th generation, can help investors and agents recognize a person’s probability to sell within 90 days “for almost every residential property in the United States,” by processing 136 billion data points assembled from more than 40 years of sales data married to corresponding demographic and socioeconomic metrics.
In addition to compounding its existing, 10-generation knowledge base, the newest iteration of the software is leveraging insights gained from the unique nature of the “pandemic market,” according to the release. Apparently, pre-pandemic market characteristics are resurfacing, specifically the rate of foreclosures, which all but stalled during COVID-19.
Realeflow has also found that the “exodus” interaction data influence is increasing, meaning the number of people in a household who contribute to a mortgage payment. “After reaching 40-year lows in 2020 and 2021, divorce rates have increased,” the release stated. Household separations have long been a lead indicator for the real estate industry, along with death and number of children, among other family status changes.
Investors can search according to location, price and square footage to receive three scores for each potential property’s status within the next 90 days. Those scores include the “retail score,” equating to the probability of a home selling close to its estimated value; the “wholesale score,” rating the probability of a property selling at a discounted price; and the “rental score,” which evaluates a property’s ability to be rented.
Marketing to subject property owners is then carried out in-app via email marketing, direct mail and social media, with bespoke campaign content and frequency using Realeflow’s Leadflow product.
“Timing is everything in real estate and it’s always the seller’s timing that matters,” said Realeflow founder and CEO Greg Clement in an email to Inman. “Even in this market, there are people that are making the decision to sell daily. AI is solving the timing problem better than anything else. It’s aligning sellers and buyers faster than ever before.”
Using AI to engage buyers and sellers, uncover opportunities and market value propositions to consumers is nearly ubiquitous, and thus, a much easier sell for software companies than it was only a year ago. The applications of AI are no longer esoteric or bleeding edge but table stakes for any proptech hoping to keep pace with a rapidly more informed consumer base, especially real estate investors, who are hunting incessantly for that next great flip or long-term hold. Tools like Realeflow can help them stay ahead of more pedestrian tactics.
The market’s slow sales growth is a boon for investors who can find the right single-family home or rehab project, as high home prices and interest rates are keeping many would-be buyers locked into leases, even in the midst of a softening rental market.
“The once-hot rental market has been stabilizing and softening year-over-year since May 2023, mostly from a surge in new rental options coming to the market that gave renters more to choose from,” Realtor.com Chief Economist Danielle Hale said in a written statement.
A new Realtor.com survey revealed the break in rental increases won’t provide enough financial leeway for renters to make the transition to homeownership.
“But the surge in rents and the sheer number of renters, many of whom have held off on buying in recent years, continue to minimize any potential price impacts that increased rental inventory could have on the market,” Hale said.
In short, single-family landlords and multi-family investors appear to have a solid market ahead of them for the time being.
