Data collection has changed industries across the board so dramatically that many past models for how to run a business have turned obsolete. We have brand-new information at our fingeripts that changes the way companies are run, and real estate firms are no exception.
Every day, we can amass new information about properties, finances, client interactions, market performance, risks, and other details that help investors, agents, loan officers, buyers, and sellers to make better informed decisions.
Big data especially influences big decisions. Since the choice to purchase a home or start a business is one of the biggest moves a person can make, the data on which you base it should be accurate and shareable.
Key data influencers in the realty sector include:
1. Data shows the importance of using technology to sell a home
Thanks to the real-time data thats been collected, we know that 89 percent of buyers use online tools as they search for their dream home. This information shows Realtors how critical it can be to use websites, listing services, social media, digital advertising, apps, and other technological tools to sell a home.
In addition, technology within the property influences your ability to sell it. According to research from Coldwell Banker, about 81 percent of homebuyers say theyre more likely to purchase a home if its equipped with smart-home tech, and 71 percent actively seek smart-home tech as a prime criterion in their home search.
Finally, 35 percent say that theyll pay more for a home thats fully equipped with smart-home tech. Data if this kind has revolutionized the way agents and buyers do business. It has altered the marketing and advertising platforms, the dialogue between clients and Realtors, and the means by which homes are sold.
2. Data illuminates what buyers look for in a home
As mentioned above, technology is a significant factor for homebuyers, and data highlights other chief interests among people who shop for a new home. The U.S. Census Bureau, for example, puts out an annual Characteristics of New Housing Report.
The 2014 report, for example, stated that single-family homes, 4+ bedrooms, 3+ bathrooms, outdoor living places, three-car garages, and homes in homeowners associations were the most coveted attributes among new homebuyers.
Such information inevitably shapes the way Realtors target potential customers. Never before have we had so much information about what sells homes, which provides incredibly useful leverage for sellers and their agents.
3. Risks for investors entering the market become clearer
Risks are have often been high for investors, but data helps to define and warn them about specific risks. The information identifies certain potential drawbacks in a particular neighborhood or with a project, so investors and financial institutions have a better sense of whether they should back the project.
For example, data collection yields information about demographics, schools, crime rates, unemployment, and other factors that will affect property values. The information aids in both investment recommendations and the risk calculation.
4. Building management is easier
The interconnected nature of the the Internet of Things can make management tasks easier. With sensors and smart tech, landlords and commercial building managers can more readily track temperature issues, energy efficiency, light bulb burnouts, and more.
This can greatly reduce spending and increase the efficiency of buildings. It also diminishes the wait time on certain repairs, which adds value to the investment. Information is delivered in real time and gets used to make multiple aspects of building management easier to facilitate.
Real estate is more secure than it once was, but theres still volatility in the market. Data increases the security of investments and provides information that raises peace of mind for everyone concerned.