Rapidly changing data management technology in the 21st Century has created cost-saving, business-expanding opportunities. Big companies around the world have realized the potential of modern technology to take over complex operations with more ease than a skilled worker could. There are debates about how it is pushing some traditional methods aside, but advantages tend to outweigh disadvantages. Technological advancement is occurring at such an accelerated rate, that businesses are struggling to keep up.
Real Estate is not behind in adapting to modern technology. The shiny new trend in the Real Estate market is Big Data. The term Big Data is a wide-ranging description of datasets that cannot be processed in conventional data bases, but when analyzed computationally reveal actionable trends, patterns and associations. Big data helps realtors make some quick and accurate business decisions that might be considered cold and calculating, which isn’t the aura of warmth and personal service realtors want to exude. However, savvy agents know that Big Data analysis can give them those actionable facts that allow them to tailor a solution to each client’s needs, and the result is an approach that is more personalized, not less.
Analyzing big data helps Real Estate businesses stay on top of the latest trend in the market. Here are some important aspects of Real Estate which are benefitting from Big Data.
Appraisals are a routine for real estate agencies. The process involves a visit of a qualified agent to the property, to discern the value of the asset by considering many factors. The appraisals are mostly used by banks to determine the actual worth of an asset before offering loans because there is a risk of lending more money than the real price of property.
Due to the rapid expansion of cities and new suburban societies, appraisals have become a complicated process because there are many factors involved to estimate the actual value of the property. With the help of Big Data, appraisals can be become a less complex affair. Big Data analysis can reveal the worth of neighboring properties in a particular area which results in accurate estimates in shorter time spans.
Making sound financial decisions is a necessity of any business, including real estate. Agency owners have to take many financial decisions on a regular basis. If a decision backfires in later stages, it can hurt any real estate business badly. There are many variables involved in real estate financial decisions that despite having a team of experts working on every angle and thinking about any possibility, there are still chances that something can go wrong.
