Written by Robert Sqonecondos
The 21st century has seen rapid changes in data management technology and the biggest results of these changes are mirrored in the myriad of business-expanding and cost-saving opportunities. Modern technology has the potential to take over complex operations with more ease than a skilled worker, in addition to numerous other advantages. Real estate has been adapting to modern technology remarkably well, with the shiny new trend of big data being particularly obvious.
Big Data is a term used to describe datasets that can’t be processed in conventional databases, but reveal actionable associations, patterns and trends when analyzed computationally. Realtors are able to use big data to make accurate and quick business decisions and tailor a solution that suits the needs of each client. The end result of realtors using big data in real estate decision-making is a more personalized approach than ever. Here are some aspects of real estate analysis in which big data provides great benefits:
- Insurance analytics;
- Targeted marketing;
- Money laundering prevention.
The wellbeing of every business rests on making sound financial decisions and real estate is no different. Financial decisions need to be made by agency owners almost daily and those that backfire can hurt any real estate business pretty badly. Despite having a team of experts that explore every angle and possibility, there are still many variables involved. Big data greatly simplifies this process because it offers superb insights on risk analysis of any asset on the agenda. It also helps realtors to determine whether it is safe or not to invest, in addition to helping predict the worth of upcoming building projects and housing.
Pretty much all real estate agencies like Square One Condos view appraisals as routine as they involve having a qualified agent visit the property in order to consider a number of factors to discern the true value of the asset. These are mostly used by banks for the purpose of determining the actual worth of an asset before offering loans. But appraisals have become a complicated process as result of the rapid expansion of cities and new suburban societies. This because there are many factors involved in estimating the actual value of a property. That said, appraisals can become much less complex with the help of big data because it can reveal the worth of neighbouring properties in a particular area. This results in accurate estimates in much shorter time spans.
In order to get the absolute most out of their insurance plans, insurance companies are relying on automated tools quite heavily. An example of how such companies could benefit from big data would be to analyze either a certain small area or larger geographical location in order to determine exactly what kind of coverages people would need. Once that is done, insurance companies would be able to customize their insurance plans specifically to those areas.
If there’s a situation in which a certain property just won’t sell despite significant efforts from multiple agents, as well as potential customers not leaving negative reviews, it is time to delve deeper into the problem. On the other hand, having knowledge of notable trends that may exist in a particular age, gender or even geographical area means realtors are able to use them to their advantage and find the best properties for those people. This particular sector happens to be one in which analytics has shown that SMS absolutely trumps email marketing. The way big data can help with targeted marketing is that it is able to deliver some pretty great targeted marketing assets by predicting the behaviours, trends and success factors.
Money Laundering Prevention
Investment funds are typically coming and going on the fly in many big real estate companies which can cause many illegal problems like money laundering due to the global nature of resources, as well as them falling into the wrong hands. A particular benefit of big data in preventing money laundering is the fact that it can provide suspicious activity analysis no matter where you are working from. This means big data analysis can alert the concerned owners at the right time, in addition to exposing the digital trail in extreme detail.