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How to Improve the Accuracy of CMAs with AI & Advanced Data Analysis

Explore the intersection of AI and real estate with Advanced Data Analysis. Dive into precise, data-driven insights for robust decision-making and fully realize every property's potential.

In the competitive realm of Central Texas real estate, precise and timely pricing can make the difference between a swift sale and a languishing listing. Traditionally, realtors have leaned on manual Comparable Market Analyses (CMAs). Now, Advanced Data Analysis, part of OpenAI's GPT Plus subscription, offers a revolutionary method to harness AI for unparalleled property valuations.

1. Advanced Data Analysis: An Introduction

Advanced Data Analysis as part of GPT Plus from OpenAI.

Advanced Data Analysis is a feature from OpenAI's GPT-4 suite. It allows realtors to engage in Python-based data science via simple conversational prompts. For a mere $20/month, realtors can access a tool that among hundreds of other things, exponentially enhances the precision and efficiency of CMAs.

2. Initializing the AI: Providing Essential Context:

Your CMA journey with AI starts with:

Uploading the CSV: Introduce your file containing comp data exported from your MLS.

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Sample Initial Prompt: "I've uploaded a CSV containing real estate comp data, which includes attributes like square footage, lot size, bedrooms, and bathrooms. Using this data, conduct a detailed analysis for a property located at [specific address] with [X sqft living space, Y sqft lot size, Z bedrooms, and W bathrooms]."

Data Preparation: The AI delves into the data, standardizing fields, filling voids, and computing crucial metrics like price per square foot.

3. Advanced Analysis: Recognizing Sales Dynamics & Status

Properties can be 'sold', 'under contract', or 'for sale'. AI discerns these statuses, identifying the dynamics of closed sales and applying these insights to available properties.

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Sample Prompt: "Differentiate between the listing statuses. Compute the average close-to-list price ratio from sold properties and apply this to those listed for sale."

4. Proximity-based Analysis: The Power of Location

When analyzing land parcels or properties near city centers or points of interest, proximity is crucial. This becomes exceptionally pronounced in Central Texas.

Incorporating Geolocation: If you're analyzing based on proximity, ensure your dataset includes latitude and longitude. This enables the AI to compute distances and derive insights based on nearby landmarks or city hubs.

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Sample Prompt: "Given the lat-long data, analyze property values based on their proximity to the Austin city center and nearby points of interest."

5. Data Visualization: A Picture's Worth

GPT Generated Scatter plots of price per square foot to proximity to Round Rock and the Samsung Plant in Taylor.

Advanced Data Analysis creates:

Scatterplots to highlight price trends.
Heatmaps to showcase demand hotspots.
Histograms to depict price distribution.

6. Predictive Pricing: The AI Estimate

Now, bring everything together and prompt the AI to deliver an estimated sales price for your subject property.

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Sample Prompt for Predictive Pricing: "Based on the comp data analysis, proximity measures, and other insights, provide a predictive sales price for the property at [specific address]."

7. Tailored Client Reporting: Making Sense of Numbers

Advanced Data Analysis crafts comprehensive reports, transforming raw numbers into digestible insights. View a sample report below.

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Sample Prompt for Report Generation: "Construct a detailed report on the property at [specific address], incorporating findings from the comp data and visual analysis."

8. Embracing the Future of CMAs

By integrating Advanced Data Analysis, Central Texas realtors are poised at the frontier of a CMA revolution. The combination of AI-driven insights and classic realtor expertise is set to redefine real estate valuation, paving the way for informed decision-making and streamlined transactions.

Act Now! Harness the power of Advanced Data Analysis and obtain a predictive sales price for your listings today.