Finding Gaps in Coverage

This video shows you why and how to use MarketSmart to pinpoint markets where you have missed opportunities: a.k.a. gaps in coverage.

Written by Laird Nossuli
Updated over a week ago

Watch the video here.


Welcome to Mortgage MarketSmart. In this training video, we're going to learn how to identify gaps in coverage, which just means making sure that you're taking advantage of all the opportunities in your markets and not leaving money in the table. From your dashboard click on start a project. So you start with a blank map, click on add a layer, data layer, the layer name we're going to call GA Atlanta 20D, which stands for 2020 dollar volume. I'm going to call this CY for by county. So what we are trying to see is all of Atlanta by county with the forecast layer of 2020 dollars. So the attribute is all purchase dollars. Let me click on it. The attribute year is 2020. The location type is county, and then I'm going to click the MSA and type Atlanta. Then underneath just simply select Atlanta and click save.

So now I'm going to zoom in by holding the shift key down and then clicking on the top left left of the map and dragging to the bottom right and letting go. So you see we've zoomed in. Here we see that there are eight buckets or eight colors that we're working with. I prefer six. So I'm going to change that number. I simply click on the GA Atlanta layer, click on theme, and then for the break count, I'm just going to select six and click on apply. All right.

So now we see that we have six buckets and six colors. I'm going to just collapse that layer. Now I'm going to add the same layer, but at the census tract level. So I'm going to click on add layer, data layer. I'm going to call this layer GA Atlanta 20D CT, which stands for census tract. So now I'm looking for again the same layer, but at the census tract level. All purchase dollars. Attribute is going to be 2020. Location is census tract. And now again I click on MSA, type in Atlanta, and click on the Atlanta box and click save.

So now we can see that we're showing the Atlanta by census tract layer and it also has eight buckets. So I'm going to change that again, clicking on the layer, going to theme, and for the break count I'm going to click on six and hit apply. Now I click on that layer again to collapse it, and I'm going to toggle the data on and off by clicking on the eyeball to the left of the data name. And so you can see that we can hide both layers. And I'm actually going to change the order of the layers. I'm going to make sure that the county layer is on top. And I do that by clicking on the double arrows here. I'm going to change the order of the layers by simply left clicking on the CT layer and dragging it underneath the county layer. So you see that they've switched and click save.

And now if I open that county layer, I can play with the opacity to completely show just the counties. But if I wanted to change that I could change the opacity to zero. And now essentially we're seeing what's underneath, which are the census tracts. Also quick pro tip is I want to see the names of the counties. So I'm simply going to go to label settings and then click on show labels. Yes. So click on yes, and you see that they're now on display in the map. Okay. So the next thing I would do is I would add my branches. So I'm going to click on add layer and I'm going to select branch locations, and I'm going to call this layer name branches. I'm going to click on MSA and Atlanta. Click on Atlanta and click save.

So you see now that every dot represents a branch. Now, in order to figure out how to upload these branches to your map in the first place, please see one of our other training videos that covers just that topic. Okay. I'm also going to change the way these branches look. I want to see them. So I click on the branches layer, click on visual settings, and now instead of a square, I'm going to want to see a star and I'm going to make it a bigger star. So I'm going to increase the size from 10 to let's say 25, and I'm going to change the color of the stars of the fill. So I just click on that color, drag the slider to the yellow, then bring this dot from the bottom to the right to the top right. And you can see that the color changes with however light or dark I select it. So that's good. I'm going to change the size of the border from two to five, and I'm going to make the border color black. So I'm going to select the black color and click apply.

So now you can see all of the branches in this location, and this happens to be all default branch locations that we have loaded. If you want it to filter some of your branch locations, simply go to view data. So branches, down arrow, view data, and I'm going to add a filter. And in this select filter field, I'm just going to say address, contains street, and you see that we have 433 branches listed right now. But once I apply the filter, we're down to 48 branches, much more manageable and much more realistic for a lender. So I'm going to go back to the map by clicking on the map button and you'll see that our branches returned to the original format. So again, simply visual settings, star, apply, and there we go.

Okay. So now as a lender, I'd be looking at this map and seeing that, you know what, my branches are pretty well distributed throughout the Atlanta Metro. Let me just put on the legend so that I'm covering these counties with a lot of opportunity, but now I want to see how well I'm doing at the census tract level in order to discover or find the pockets of opportunity within each county. So I simply turn off the county level layer and I'm left with the census tract level layer. So now I see the opportunity by census tract and we change our legend and our branches. The next step would be to add a layer of your originations. So click on add layer, click on my loans. The layer name is going to be called originations and the year is going to be 2019.

So for example, in this case, we are putting all 2019 loans and the MSA is Atlanta. Click on save. And so now we have every red dot represents an origination. And in order to filter these, we can go to the originations layer, view data, and add filter. We're going to do the same thing with address contains street. And we're going to go from 2,700 loans down to 120 loans. So again, for the purpose of this video, much more manageable, and I'm going to go back to the map.

So now we see this loan cluster, but the important thing when identifying gaps in coverage is to be able to zoom in to an area, so I'm going to pick this area here, and see that, hey, we have three branches in the vicinity and we are doing some originations, or we did some originations last year in some of these areas. But the key is if I temporarily suspend these layers, by clicking on the eyeball, I can see that this census tract is forecasted to have over $78 million of opportunity alone. This census tract, 67 million, and this red census tract, 139 million of purchase opportunity. Again, this is forward looking data. So once I know the opportunity inside every tract, I can go back to my branches and then my loans and see that I am leaving money on the table. This is a big gap right here to the north of these two branches, represents over $200 million of opportunity. And if this were true data, this were real data, I would be saying I have one loan in a $70 million census tract. There is room to grow.

So what to do about that? I'm going to zoom out of the map just a bit by clicking on the minus sign to zoom out. And the next step is now that I know where I've been in terms of originations last year and how I've performed, the next step is to add real estate listings to the map. So I click on add layer, real estate listings. I'm going to call this layer listings, and I'm just going to add it for a single county for the purpose of this demo. So I click on counties and I'm going to select Georgia.

Here I'm going to select, I'm going to find Fulton County. So it's in alphabetical order, Fulton. And once it's selected, I can click save. And the MLS listings, which are live feed, have been added to Fulton county. So now every diamond that you see represents a live MLS listing, I will just pick one to show you.

So I clicked on that diamond and we can see that it's 770 Colonial Lane in Alpharetta with a list price of just under 700,000, and the agent name is Julie Martin. And if I wanted to contact Julie Martin right away, I have her email address here, which I can click, and it will send me directly to an email that's ready to go and addressed to Julie Martin. So I don't save that.

So let me close this for a second and just show you how the listings look. So you can see these are all the listings. And in fact, this is a little overwhelming. I don't want see all the listings. I want to filter these just a bit before I start looking at them. So I just simply go to the listings layer, the downward arrow, and view data. And you can see that there are 29,953 total listings. So if I go back to my map, I can then just click on the listings layer and you see that there are listing filters and agent filters. In the listings filter, just click on the name. It shows all of the listings with the most expensive listing being 17.5 million. So I'm just going to use the slider to focus on listings that are under let's say $1.6 million.

For the status, I'm going to make sure that these listings are active. I don't want to see pending listings or contingent listings or de-listed listings. And I'm going to hit the space right outside of standard. And then for property type, I'm going to choose residential. So I don't want to see commercial, farm land or business opportunity loans. Click next to property type again. And then for the days on the market, I just want to see listings that have been on the market for 40 days. So now these are the filters that I'm applying to this data and I click apply. And we'll notice that the number of listings is greatly reduced, although still dense. But if I go to my data, view data, I can see I went from 29,000 listings to 3,400 listings. So again, these are the same filters that I just applied on the left.

So the best part about this information is that if these were the right filters, I can target specifically these 3,400 listings, and I could export them to Excel directly to manipulate them offline if I wanted to, or what I suggest and love is going to this by agent tab, which lists all of the agents in the MSA in descending order. So essentially this gives you a list of all of the agents that are the top agents and that are the most active in the MSA. So for example, Mark Spain has 2,352 total listings of which 513 are active. And over the past 12 months, based on MLS data, he sold 1,045 with an average close price of 252,000 and an average days on market of 71.

So what's interesting here is you can use this information again to export directly to Excel and use however you wish, or you can use this star feature which allows you to favorite a real estate partner. So for example, if you knew Rhonda and you already did business with Rhonda, you could favorite her. If you knew, or if you knew of Kim, you said, "You know what? I need to make sure that I start developing a business relationship with Kim and start getting more of her business because she's so active in the market. I'm going to star her as well as Michelle and Tamara and Janice." So I've starred or favorited five of the agents. And the best part is when I go back to the map, I still have all listings here, but I can simply collapse the listing filters and instead open the agent filters. Where it says show favorite agent listings only, simply click on yes. And by clicking on yes and hitting apply, this list will be whittled down to those five agents only.

So the idea is if I click on one, we can see this was Rhonda's listing, again 12430 Stevens Creek Drive, 440,000. Here's her contact information, it's been on the market 22 days. This MLS data is live and it's updated daily.

So if we step back again, collapse the agent filters, collapse the listings and we add our base map, I can now see all of the listings in the hot areas, the areas in which I'm interested. So the idea is if I put my branches back on and zoom into that original area, I can now see and tell any loan officer sitting in these branches, "We want you to focus on these areas because we know that's where the opportunity is. And oh, by the way, here are some actual live listings in this area, and this is who you need to contact." It becomes very straightforward of taking the strategic view and the strategic lending proposition from senior leaders, and then turning it into something tactical that loan officers can act on. So from the strategic down to the tactical, which makes this information actionable. Lenders can actually take action and make decisions based on this information. Thanks for watching this video. We'll see you next time.

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