Big data is revolutionising businesses of all kinds, including real estate. Big data is incredibly valuable in several ways: helping companies build strategies, inform decisions and improve efficiency. There is a massive buzz around big data worldwide. 40% of companies worldwide already use big data to streamline workflows and to inform decisions. That percentage is only going to grow in the future and it’s sure to change business practices across the industry.
Hyper-personalised house searches
Consumers are now used to having an incredible amount of personalisation when online. Through big data, the house hunting process of the future will be a highly specific, personalised service. When you scroll through sites such as Rightmove and Zoopla, you only have a few filters at your disposal. However, service providers will soon be able to harness massive amounts of data from everything from your web history to your social interactions. Buyers will be presented with detailed, ‘psychographic’ profiles that focus in on the intricacies of their personality and lifestyle. Real estate agents will be able to highlight which houses match the prospective buyers on a microscopic level.
Valuations are a vital part of the house buying process. Good valuations go into incredible detail and require the work of a highly-qualified individual to determine the true price of the property. Value Risk Modelling (VRM) is a new program that instantly assesses the risk parameters. It considers all manner of data: loan-to-loan ratios, fraud risk data and environmental issues. The software boasts incredible accuracy without any bias or oversight. Soon this form of modelling will develop into a cloud-based valuation software that can be used on all devices. The software would use sophisticated algorithms to reduce the time of valuations.
Improved demographic data
Big data analytics can help real estate companies provide better property and neighbourhood demographics to buyers. For example, a married couple with children would want to be in a location with good schools and low crime. Big data collections have made it possible for real estate firms to provide this kind of information to those looking for a new home. Also, real estate companies can use big data analytics to spot trends in particular demographics and use that data to find the best properties for their customers. Analysing customers through demographic and interests can also be used to target potential buyers with the right message. It can help agents make predictions about the right time to buy a property because they can look at trends in housing prices.
Improved financial processes
Real estate firms must make constant financial decisions on a daily basis. Big data has made financial processes much easier for agency owners, as it offers accurate insights on risk analysis of key assets. For instance, real estate companies can use big data to analyse a building’s age, structure and information on the financial status of the owner. Such analysis enables firms to get a better read of the situation.
It can make real estate agencies make smart investment decisions and negotiate more easily with clients as they have more information on the property. Real estate agencies can also use big data to provide a more detailed view of potential mortgage payments for clients. That way, buyers can better prepare their budgets before buying a property.
Big data is fuelling changes in the real estate industry and it’s providing better decision-making and greater transparency. It’s more important than ever that real estate firms incorporate big data into their business with new tools being developed every day to store and analyse large amounts of data. Big data is shaking up the way properties are sold and bought, ensuring for a more efficient experience for both professionals and customers.
Leave a comment below on your thoughts on the changes to the Real Estate industry caused by big data.
Alternatively, if you are interested in discussing any Property & Real Estate roles available or any hiring requirements, please contact your nearest Cobalt office.
You may also be interested in: