What is “Big Data”?
Big Data refers to processing large amounts of data, whether it’s real-time data or legacy data. Algorithms are then applied to this data so that trends can be discovered. These can be trends in user behavior, trends to predict future outcomes, or gain business insights. With these data sets, you can make accurate business decisions. Since this data is a lot in quantity, managing it by processing, analyzing, and discovering trends within it requires tailor-made software. This sort of work is just too much for one data analyst.
Big data has three main V’s: High volume, high velocity, and high variety of data.
Big data processes a lot of data volume that can vary between tens of terabytes to hundreds of petabytes.
This data comes in quickly from “firehose” sources such as social media feeds. This requires high-speed processing.
Lastly, big data comes in a wide array of data types. Big data comes in unstructured data sets from audio, email, video, and texts. Because it’s so varied, it requires preprocessing before value can be extracted from it.
How Does It Work In Real Estate?
Before real estate adopted technology, decisions were made on gut feeling and first impressions. Presently, data analysis has entered the decision-making process. Everyone from realtors to home buyers is now accessing data that’s just a click away, empowering them with smarter investment choices. Big data has let real estate take advantage of accurate market trends and risk evaluation predictions. Thanks to big data, real estate is a game of information.
Real estate agents focused on delivering customer-centric properties have generated insights from their data to meet their customers’ needs better.
Data points like proximity to amenities, real-time traffic estimations, noise levels in the neighborhood, areas with heavy late night activity, parks, restaurants, outdoor activities, and neighborhood reputation are all easily accessible thanks to big data and inform the customer with stats and facts when making this crucial decision. According to the National Association of Realtors, more than 51% of people discovered their ideal property online last year, according to the National Association of Realtors.
Why Is It Important?
Big Data in real estate offers so many benefits to everyone involved that it’s hard to look at an alternative that isn’t geared toward technology adoption.
- Predictive analysis and discovering trends in data can reduce risk in real estate investments. Risk can be mitigated thanks to all the impartial data about a property to realtors and buyers alike.
- With big data, evaluations are not only fast but straightforward. Appraisals can be done within record time based on years of market data. Financial institutions rely on fast evaluations to calculate loans and minimize their losses.
- Big Data has allowed realtors to understand their customers’ needs better with the help of predictive analysis. This means that the realtor can develop personalized offers based on the data they have on hand.
- Marketing strategy has been severely improved because realtors have access to current consumer trends.
- Paired with social media, big data lets advertisers target the 18-35 demographic and any other interested potential customers by region, age, gender, interests, and similar preferences.
- Insurance companies use big data to analyze optimal insurance offerings for their customers.
Now, with how-to videos and guides available to everyone on the internet, people are discovering so many niche techniques previously reserved for professionals. This also includes real estate appraisal and how to handle real estate purchases. Data analytics technology has gone from tenebrous to user-friendly, becoming more accessible than ever for everyone, optimizing the real estate industry through transparent data democratization, location intelligence for house scouting, and building management technology.
More advances in big data in the coming days will reshape the real estate industry and change service providers’ business models. Paired with artificial intelligence, machine learning, the Internet of Things, big data will bring a positive change to the industry, given that the industry wants to adjust to the benefits that big data provides. Real estate has been a late adopter of technology compared to its counterparts.
Big data provides access to quick and thorough data that lets realtors and buyers discover trends, learn about more data points than traditional real estate would typically allow, and has empowered both real estate agents and potential buyers to make more informed decisions with technology like big data, Internet of Things, and artificial intelligence lending a helping hand.