How Big Data Has Changed Real Estate Industry

Sam Singh

June 14, 2017

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Big Data has made a huge difference to many industries. Big data comprises precious information about human behavior and interactions. It also features critical patterns and trends among consumers. Businesses gather humungous amount of data every day. It’s not only the volume of the data that’s important. The crucial thing is to analyse this data and change into a strategic tactic to propel your business further. Like every other industry like hotels and hospitals, big data has immensely change the way real estate operates. Real Estate industry is now getting better and clear cut insight into consumer behavior owing to the boon of big data. The way real estate professionals, buyers, sellers, and lenders approach real estate transactions has changed tremendously.

Here are the ways in which the big data has changed the real estate industry:

Making the appraisal process simpler – The real estate industry considers appraisals a very valuable part of their business. The approval of loans by the lenders depends upon the valuation of a property provided to them by the appraisers. That’s a major factor on which depends whether a lender will approve the loan or not.

Many a times, the monetary offering is not approved by lenders if the value of the property is deemed to be less than the loan amount that’s been requested. When the factors deciding the appraisals, many a times the appraisals turn out to be inaccurate. There are many other scenarios where appraisals get very tough and complex. In such scenarios, big data has benefitted by simplifying the process of appraising and deciding the prices. Big data has positively influenced in curtailing gaps between errors and omissions.

Raising the standard of financing process – Big data has helped real estate business make better decisions in favour of their businesses. Big Data’s valuable information can help real estate professionals in figuring out the risk level of particular buyers and sellers. This information plays a pivotal role in assisting investors and developers opt for smarter decisions in their business.

Looking for future trends – Nobody wants to purchase a property in an area that is going to decline in the future. What a particular property be worth in long and short term is extremely critical to first time or seasoned buyers. Through big data, buyers are constantly getting a good insight about where a particular property is heading in terms of its future worth. These daysinnovative real estate investor software programs can provide a good prediction into the future valuation of a property. This has made life easier for buyers. They can now determine whether they are making the right choice before buying a property.

Banking – Banks get help from big data to understand the exact need of their customers. Big Data is always very well analysed. This gives birth to various ideas assisting banks is better utilise their marketing efforts. This also helps the property loan seeking customers who would otherwise be declined by banking institutions.

Insuring property – One can easily use big data tool to insure a home, commercial space or a property too. All varieties on insurance coverage now bank on the information procured from digital data sources. Of course insurance companies are making big efforts to increase their profits but they are also coming up with new ways to serve their clientele better because only that will sustain them in the industry.

Insurance companies need to scrutinize the data from a huge number of users. They make an in depth study to decide what type of insurance is needed for a particular geographic locality or for a particular property.

Businesses look at big data analysis as the golden standard to predict the future and the same runs true for real estate industry too.