How Big Data is Transforming the Real Estate Business
Updated: Feb 12
No more is the real estate industry just about plain property sale.
You heard that right!
It’s about finding the right customer at the right time and showing them the right kind of property they will like and eventually buy. Sounds like a lot of work doesn’t it? Well, we have a way of making it easier-BIG DATA!
Big Data is one word which gets thrown around a lot. Like any other industry, big data has completely transformed the way organizations functions. Decision making is now quicker,
smarter and simply more efficient, with copious amounts of data available to help in predicting market forces. This analysis provides the buyer, seller, and the real estate agents with deeper insights, all of them are able to navigate decision making with more efficiency and confidence.
How Big data Will Disrupt the Real Estate Industry
By tapping into the analytics, it gives the owners an opportunity to modify their homes and buildings in a way that are up to date with the latest trends and fetch the best price possible.
Use of analytics will bring more transparency to the market, resulting in fairer deals.
With on point predictions, the magnitude and number of risks will also go down.
There will be a 51 % enhanced standardization across all the sectors in real estate.
What’s in it for real estate agents?
Analyzing the huge amounts of info that big data provides, real estate agents can now provide better services to their clients by simply being well informed about their choices and preferences.
1. Knowing your client
By tracking what people in a particular area are searching for regarding real estate and property, retailers come to know about the most popular characteristics people are looking for in houses
and which areas are experiencing high demand for homes. This kind of info allows the retailers to
tailor make their strategies to ensure that their buyers get exactly what they love.
2. Simple and fast appraisals
One simply can’t overlook the importance accurate appraisal. It is used by retailers to price their properties, relied on by investors and buyers to make a good offer and by lenders to minimize losses on faulty loans. To put it simply, one simply can’t function without it.
With the help of big data, the appraisal process has become faster and more efficient. Most neighborhoods and subdivisions feature similar types of home with similar features. Combined with the years of market data, big data makes it easy to produce an accurate appraisal. Although
it should be kept in mind that big data only speed up the appraisal process, it in no way is a replacement for the appraisal process.
3. Accurate predictions
Traditionally predictions were based on gut feelings, intuition, and experience. But today, with a plethora of info at our disposal, these predictions are generated by algorithms that can predict the market fluctuations down to the minute.
A home buyer would think of buying a property with no risk involved whatsoever, a realtor, however, knows that with high risk comes big rewards. But just being able to make accurate predictions doesn’t matter; to be able to analyze it effectively is the real challenge.
Following aspects can be gained by an investor from big data in real estate analytics –
How good is the market for investments.
How much money other investors are making.
How much money they could be making.
How will this data help them get rich?
The competitive quotient in the market.
Shows which property to pick and what strategy to use for it.
How can big data benefit property buyers?
With data points at their disposal, buyers too shall have a knowledge base to make informed decisions. For example, when it comes to pricing, having information about which kind of facilities attract which range of prices will hugely benefit them as they’ll be able to chuck out overpriced options. This will give them a firm negotiating ground.
Big data has something for everyone, how well one can use that info is exactly what will turn the tables and determine who will benefit. Wish to disrupt your real estate business using big data analytics? Get in touch with Datahut, your big data in real estate experts.