Understanding market trends and investor activity is critical for real estate agents and investors looking to make informed decisions. With Privy's data-driven tools, you can identify hot markets, track investor activity, and provide clients with valuable insights to help them find and analyze deals. Conduct effective market research using Privy’s investor activity tracking, after-repair value (ARV) analysis, and other key strategies.
Why Market Research Matters
Working with real estate investors requires a deeper understanding of local market trends and investment strategies. Not all deals are created equal—one investor may see a property as a great fix and flip opportunity, while another may prefer it as a long-term rental. By leveraging market data, you can:
Identify where investment activity is happening.
Determine the best areas for fix and flips, rentals, or teardowns.
Guide clients based on real market conditions instead of speculation.
Increase confidence in deal analysis and improve investor success rates.
How to Conduct Market Research in Privy
1. Use Investor Activity to Find Hot Markets
Privy’s Investor Activity tool allows you to track investment activity nationwide, helping you understand where successful deals are being completed. To use this feature:
Click on the Investor Activity tab on the left-hand side of your screen.
Choose from three deal types: Fix and Flip, Tear Down, or Below Market.
The map will display where these transactions are happening in real time.
This tool helps you reverse-engineer success by focusing on areas where investors are actively buying, renovating, and reselling properties.
2. Zoom in on High-Activity Areas
As you zoom into a market, the clustered investment activity icons break down into individual transactions.
Identify areas with consistent investor activity—these neighborhoods provide strong comparable sales and higher deal potential.
Avoid areas with low investor activity, as they may lack strong comparables, making ARV projections difficult.
3. Analyze Comparable Sales to Determine ARV
One of the key indicators of a strong investment deal is the After-Repair Value (ARV)—the estimated resale value of a renovated property.
Look for fix and flip comparables (recently renovated and sold homes) within your target area.
Compare purchase price vs. sale price to estimate potential profit margins.
Use Privy’s automated LiveCMA™ to track real-time market data, including price trends, construction timelines, and investor profits.
4. Guide Clients Using Market Insights
Investors often have preconceived ideas about where they want to buy, but data-driven market research allows you to guide them to areas with actual investor success.
Use Privy’s investor activity maps to educate clients on the risks of buying in low-activity areas where comps may be weak.
Explain the importance of pricing strategy—buyers offering 50% of ARV in a market where most investors buy at 60-65% of ARV may not be competitive.
Key Takeaways for Investor-Savvy Agents
Use Data, Not Guesswork: Investor success depends on accurate market research, not just location convenience.
Reverse Engineer Deals: Find where investors are already having success and start searching for deals in those areas.
Guide Clients with Confidence: Understanding ARV, investor activity, and market trends allows you to position yourself as an expert.
Automate Research: Privy continuously tracks market trends, helping you stay ahead of the competition and reduce manual research time.
By leveraging Privy's market research tools, you can accelerate your learning curve, identify better investment opportunities, and become an indispensable asset to your investor clients.