What kind of changes would you make if you worked in the real estate industry? Anyone who has bought or sold properties knows they do many things right, but there are lots of areas where they can improve too. We’re actually seeing a huge shift at the moment thanks to the big data we have access to. Here are some of the biggest ways the industry is evolving due to the massive amount of information now available.
Avoiding another Crash
We all know what happened in 2008 because it crippled the country. Lots of people knew something didn’t feel right, but only a few seen the huge real estate crash coming. It’s simply a matter of time before something goes wrong again, but perhaps this time we’ll be able to delay the inevitable. Big data will be able to take lots of information and warn us long before something disastrous happens.
Investing in the Market
When you invest in a property you don’t just want to make your money back. Ideally, you’d like to maximize the amount of money you make. You certainly don’t want to end up with a losing investment, but with real estate it’s hard to tell what will happen even if you’re knowledgeable in the subject. If you’re investing in property now it would be wise to use software that will tell you how big the risk is.
Insuring Your Property
How do companies know how much to charge someone for home insurance? They use big data to work out how high the risk is compared to other homes around the country. OBX rentals wouldn’t have the same insurance costs as rentals in a less savory part of the state. Not only will this help insurance companies save a lot of money, but it’s also beneficial for property owners who invest in areas where the price of homes won’t be cheap.
Smart Real Estate Agents
A new crop of real estate agents are breaking through and they’re experts in data analysis. They will be able to narrow in on the homes people will want to buy, which means their conversion rate is going to go up. It’s great for the real estate agents because they’ll earn a lot more money, but buyers will benefit too. They won’t have to be dragged around homes they’ll have no interest in buying before finding the right one.
Managing Buildings Easily
At the moment it’s not easy managing properties, especially for those looking after lots of them at the same time. If sensors are utilized correctly it means things like air conditioning units will alert someone if they’re not working. Problems can be fixed as they arise, so a building management company won’t be inundated with multiple calls at the same time. If you can solve a problem quicker it also stops things from getting worse.
When you look at real estate it’s unwise to stay inside the echo chamber, so you have to look at things like the world of finance too. Someone could be declined a mortgage based on big data the banks have collected over the previous years. Obviously, this could work the opposite way too. Banks have been taking data into consideration forever before handing out mortgages, but the sheer volume of new data at our fingertips these days is staggering.
Where To Buy a New Home
Where would you buy a new home if you could choose anywhere in the country? If you have an answer it’s probably based on places you’ve visited or things you’ve heard. As big data evolves you’ll know every single piece of data about a random street, which will have a much bigger impact on the places people will decide to buy homes. They’ll want to know about crime rates, income brackets, and everything else your imagination can come up with.
A Lot More Accurate Appraisals
In the old days, someone would visit a property to appraise it before the bank offered a mortgage. Why would they give someone a massive loan if the house wasn’t worth it? They could potentially lose out on a lot of money, so it’s easy to see why they won’t stick to regular appraisals in the age of big data. They’ll still have a professional pay the property a visit to offer their opinion, but it’s not going to be the only thing they take into account.
Big data is also going to change the way we design homes, manage large-scale real estate projects, catch onto new and exciting trends, plus a lot more. That is only in one single industry, so can you imagine the impact big data is going to have on the whole world?
The future is going to be an exciting place, especially if you’re into real estate. Those already working in the industry can begin to use big data right now to beat out any competition too slow to take advantage of it.