When it comes to technology and tools, real estate has traditionally been a late adopter compared to its counterpart industries. That has been the same case with the adoption of data and analytics. However, over the last decade, people have started taking notice of the value of large data sets. They have begun to understand that quality data, good analytics, and reliable tech are needed to work alongside people in this industry.
Big data, and the quality of information it provides, have changed the business model of industries such as tourism and finance. It has also recently permeated real estate, a multi-billion-dollar sector known for relying on tradition and intuition.
Throw in technology that crunches big data sets in real-time and Artificial Intelligence-powered solutions that offer business insights, and you have quality data at your hands that underlines real estate decisions in terms of buying, selling, and developing.
A New Kind of Data in Real Estate
Before, property data included the date when the property was built, what construction material was used, how many stories it has, how many bedrooms and bathrooms it has, and what the square footage is. With big data, there are more than 200 new data points to parse.
Websites like Zillow, Redfin, and Realtor have democratized traditional data like lot size, price, area population growth, and nearby schools. It’s all publicly accessible. Big data goes one step further, allowing developers to gauge potential projects, letting agents help their clients more efficiently, and giving home shoppers ludicrous amounts of valuable data free of any hassle.
Startups geared at real estate are coming up with more novel ways to utilize big data to produce quality data that will help give their users an edge over the rest of the market. Such proliferation boasts the ability to answer the most fundamental questions posed in residential real estate.
Impact of Home Pricing
Machine learning can help examine features of a home through pictures to establish the quality and its sale value. With the help of big data solutions, predicting the value of high-end properties has come a long way and has impacted home pricing by providing more accurate data for comparison and analysis. Where comparable data is scarce, technology bridges the gaps and finds price benchmarks better than its human counterparts.
The algorithm feeds on training data, assimilates it into information, and then uses it to determine home pricing. This quality data could not be procured in such a way before the advent of machine and artificial learning. It’s allowed agents and tech to come together to achieve better results.
Marketing and Selling Properties
Previously, traditional real estate agents would tap into their network to sell a particular high-end property. They would refine their approach to market to a few thousand potential affluent buyers all over the country. Through their network and connections into the world of high-net-worth individuals, they would make a real estate deal.
Now, AI-powered brokerage websites and applications such as REX are taking a different route altogether, marketing through reliance on data and tech to attract buyers to the listing. Sellers are charged a certain fee that’s less than the industry standard, and high-profile potential buyers are approached online.
With buyer data accumulated and utilized by the AI-powered websites, preferences such as budget, location, square footage, and amenities are noted down by the algorithm to use this quality data to refine its approach for the next potential buyer.
Important Information About The Home
With the help of commercial and public data available, companies like Localize.city can get detailed knowledge about properties such as how noisy a particular neighborhood is or if there’s loud development taking place nearby. Other information like closest intersections, nearby features like parks and restaurants, and what kind of weather the area generally gets all year-round are all fundamental data critical for buyers.
Most homeowners regret buying their home within two years because they’ve been unaware of what it felt like to live in that house before they’d bought it. With quality data like this available to them before they’ve made a purchase, they can make better decisions and not regret their purchase.
Reduction Of Development Costs
Quality data allows more than just analyzing present-day properties. It will enable developers to build better homes in the future. With data-driven insights, developer expenses can be reduced significantly. Companies like Deepblocks offer property analysis that would otherwise take weeks or months of collaboration between developers, architects, and financial performers.