Greetings: The result I received in the "parcels on market ratio" column do not seem plausible. In one acreage category, with 1665 DataTree records, the ratio was 0.3. I have worked this area and I am reasonably sure that nowhere near 30% of the parcels in that acreage range are on the market. Am I missing something? Thanks for your help.
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Hi Scott,
Thank you for reaching out! That's a totally valid question. There are a couple of caveats to the Parcels on Market Ratio.
The first is that it's going to be very relative to our system and the comps we have readily available. We collect our comps from Zillow, Realtor.com and Lands Of America. The DataTree Owner Records is a number that comes from a subset of property use codes that we have predetermined to be vacant land. These two things may not be perfectly aligned. There may be comps on the listing sites that don't necessarily fall into these categories. It's also going to be very dependent on our collection methods.
The other (and more important) caveat has to do with filtering. All of the DataTree filters we have in the advanced search section will only filter down the owner records. It will not affect comps. This is because the majority of those filters are not available on listing sites (i.e owner mailing location, owner type, deed type, apn scheme, etc). So as you apply more filters to the search, the DataTree Owner Record count will go down, and the comps will stay the same. This may lead to high ratios.
The intent with all of these numbers is to compare locations to one another within our system rather than use them as absolute values. Our system was originally designed to enable you to search anywhere in the country and determine where you wanted to go based on data and metrics. The goal is to give you an idea of what is listed on common listing sites versus what you intend to pull to get an idea of relative market saturation in a given area. From there you could make a decision based on your particular strategy!
Hopefully that helps! Please let us know if you have any other questions Scott.
Hello,
Interesting metric and given the insights above and understanding that no metric is the perfect one. My real basic question is a conceptual one. What suggests the greatest opportunity when using this metric. A low or high ratio? What sort of ratio would I be looking for that represents and under-served area or area with lower competition? tia