The Role of Big Data in Real Estate

Big data is a concept that has become increasingly connected to a wide range of businesses and industries, including real estate. It can help automate transactions and improve efficiency for real estate professionals. This article will highlight how big data can help grow your business and enhance your professional practices.

As more interactions shift online to cloud-based platforms, more data is available for valuable analysis and real-world applications. The growth of significantly large data sets, commonly known as big data has impacted real estate and other important sectors.

Real estate is a field that generates volumes of data, from buyer and seller profiles and property information, to financial transactions and more. According to CIO magazine, “data is an important element in refining the real estate process.”

Before shifting to more digital-based transactions, many real estate professionals created, stored and accessed information via traditional paper formats. Now however, more processes are conducted online, resulting in a wealth of big data that real estate pros can benefit from.

Here are 3 ways real estate professionals are using big data to gain insights and boost their business:

1. Identifying buying trends

What are the hot markets or the demographics of a growing buyer segment? Where are the neighborhoods that show potential for expansion or development? Companies are taking big data and helping real estate professionals to identify potential buyers. Knowing more about prospective clients can go a long way in gaining a professional advantage.

2. Tracking property changes in real time

When it comes to property, changes can happen quickly and frequently. Software companies are helping real estate pros by tracking, capturing, analyzing and sharing data streams associated with multifamily buildings and more. Maintenance issues, equipment performance and other information can be easily accessed to give better insight into the status of specific properties.

3. Making property pricing easier

Pricing a home typically involves several factors such as market analysis, neighborhood and property assessment, and more. A mobile inspection app uses data to generate and deliver appraisal reports that incorporate public record integration and comparison databases.

In addition to letting big data help expand your business, consider working with American Home Shield® to offer home warranties to your clients. AHS® has plans that cover over 21 appliances and home system components from breakdowns. More coverage for your homebuyers and sellers can mean increased business for you.

Sources:

https://www.cio.com/article/3211601/data-science/8-companies-using-big-data-to-disrupt-real-estate.html
https://insidebigdata.com/2017/11/20/big-data-shaking-real-estate-industry/
https://www.forbes.com/sites/forbesrealestatecouncil/2018/01/22/what-predictive-analytics-big-data-and-the-rise-of-artificial-intelligence-mean-for-real-