White Paper: Validated Artificial Intelligence Leads
Revaluate’s ‘Likely-To-Move’ Artificial Intelligence Leads are Right 1 in 5 Times — Independently Verified by Altos Research
We are thrilled to announce that Revaluate’s “likely to move” Artificial Intelligence lead prediction accuracy rate has been verified to be 19.5 percent by an independent third party, Altos Research. In other words, one out of five Artificial Intelligence leads generated for Mortgage and Real Estate clients by Revaluate move within six months.
“This is by far the best lead success rate we’ve seen in the real estate industry, and we expect the rate to improve over time, given the machine learning Revaluate’s algorithms employ. Altos Research performed this statistically valid research in order to test Revaluate’s algorithm success rate. The prediction success rate is verifiable due to the MLS confirmation of home listings.” said Mike Simonson, CEO of Altos Research.
Altos Research took a statistically significant sample size (5 percent) of all the likely mover leads generated by Revaluate in 2017 and compared them to verified home sales within their MLS. To ensure a lack of geographic bias, the sample was pulled randomly from across the U.S.
In a typical prospect database, the likely movers that Revaluate identifies could be renters, buyers or sellers. This study, however, was limited to verification of accuracy via those who listed a home for sale via a MLS. Markets with low MLS use, such as San Francisco and NYC, were eliminated from this study. As a result, the 19.5 percent success rate only applies to those who sold a home by listing it on an MLS and does not include home renters, first-time buyers or second home buyers, as they could not be independently verified by another source such as an MLS.
The good news is that, while Altos’ results are extraordinary, they show only part of what we know is our actual prediction success rate, which is much higher. Our customers currently self-report that Revaluate’s prediction success rate is 36.4 percent, which would account for the renters and home buyers that Altos Research could not track in its study since they could not be independently verified.
Industry Lead Success Rates Pale in Comparison
Only 1 percent of cold calls actually result in a meeting, according to a study by the Keller Research Center at Baylor University. Zillow, Trulia and Realtor.com leads have an approximate 10 percent success rate, which Altos estimated based on 5 million homes sold and 50 million leads generated. It’s safe to say that Revaluate’s lead success rate is the one to bet on.
Revaluate is leading the way in Mortgage and Real Estate Artificial Intelligence Leads and our success rate will only continue to improve as our algorithms grow smarter as more data is added.
Read the White Paper in it’s entirety here.
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