Real Estate and Big Data: Its Advantages and Use Cases

Data is processed every day. Regardless of what kind of data, everyone is always looking for something on the Internet, and algorithms work with huge massifs of data. That is where big data comes to rescue. Today big data is used in many sectors where it helps service providers and customers benefit from big data capabilities.

This time, we will focus on its impact on the real estate sector. You should read it and find out why big data is advantageous for the real estate industry and how it can be used.

The Potential of Big Data in Real Estate

Today big data contributes to all sub-divisions of the real estate industry. Using BD, you may build a business model, manage human resources, and optimize expenses.

The main goal of Big Data in the real estate sector is to arrange an automated analysis of vast massifs of data. It is impossible to process all this data by a human. So, when Big Data is applied, real estate companies may optimize their expenses and provide customers with detailed and more accurate results.

Big Data algorithms also apply machine learning and artificial intelligence that improve data processing and the provision of accurate results. For example, some banks already issue loans based on automated system decisions. That is, AI and Big Data analyze the solvency of borrowers, their credit history, and human employees don’t need to do it on their own. Besides, the system provides precise results.

Big Data Pros in Real Estate

In this section, we will list all the advantages of big data in real estate substantively.

Risks come to naught. Financial risks always exist in such areas. And companies want to avoid it. They use predictive analytics. It makes it possible to analyze the condition of the building, how long ago it was built, what types of reconstruction or redesign were made, etc. Thus, companies make a precise estimation, and they provide a customer with detailed and transparent information about each building.

Customers become more engaged. Real estate companies often face a problem in the form of customers who don’t know what they want. Their needs and expectations may change every day, and customers change their minds regularly. But big data analysis may fix it once and for all. Analysis of the requirements and needs of customers helps increase their engagement since customers receive recommendations that completely meet their strict requirements. Customers are satisfied, so are real estate agencies.

Accurate appraisals. As we noted above, it was somewhat challenging to make a correct estimation for house value. But big data changes it, and now customers get an accurate appraisal of a house value since all factors like building condition, district, etc. are considered. As a result, customers see the real price, and they have more trust for real estate companies due to big data analytics.

Decisions are made faster. It was mentioned above about the connection between big data and artificial intelligence. First, AI can be used in chatbots that help customers find out new information without human assistance. And customers may make a decision faster. In turn, real estate agencies and companies also can do everything more quickly since they have precise information collected by big data algorithms. AI & chatbots with big data may process the information faster and more accurate.

Improved marketing strategy. Real estate companies also work on a better marketing approach. For example, agents extract data about customers from social media to get comprehensive information about them. It helps agents provide customers with their services at the right time. Also, Big Data allows agents to keep up with the latest trends and changes in the real estate market, so customers get up-to-date information.

These five benefits are not all benefits, of course. We wanted to pay attention to the hottest of them. And you also need to consider that if you are a beginner in real estate, and you plan to make a real estate website, mind to add big data algorithms to improve customers’ experience and earn trust and loyalty.

How Big Data Can Be Applied in Real Estate

You figured out how the real estate sector benefits from big data. Now you may find out how big data is used in the real estate sector and what use cases exist.

Transparent Data Provision

Trustworthy and dependable real estate companies want to provide customers with transparent services, that is why they use big data. Companies collect truthful and up-to-date information like lists of apartments and houses, prices, surveys, etc., and submit it to customers. Customers need to know that they are not misled and cheated, and companies play a fair game.

For example, Zillow (a leading real estate marketplace) created a Big Data-based tool called Zestimate. It helps customers estimate the actual value of a house in various regions and even predict the future price.

Advanced Search of Real Property

When people want to buy real property, they need to have actual information and an opportunity to select a real estate using the smart search with filters.

Big Data is used in advanced search where customers may find out all details about the location and the neighborhood where they plan to buy a house or apartment. Big Data algorithms make it possible to figure out what educational establishments are located there, how many shops nearby, and so on.

Also, customers may apply such filters as the crime rate. Nobody wants to live in the region with a complicated crime scenario. So big data helps customers figure out what crime rate is in the indicated district.

Generally, dozens of filters can be applied, and everything depends on the requirements of real estate companies.

IoT in Smart Homes

IoT that stands for the Internet of Things is the technology that connects various devices. And IoT in the house turns it in a smart home. Domestic appliances connect, heating and air conditioning are controlled automatically, smart refrigerators sends information about all available or absent products to a landlord, and so on. It is great, yeah? But IoT means a massive amount of data. Big data algorithms process and structure this data. So big data is required in commercial real estate to deal with the significant data flow.

Real Property Building

If real estate companies plan to build a building for sale or rent, or mall, they need to know the right location to do it. The expediency of the building may be resolved with the help of Big Data. Real estate companies use machine learning algorithms that may predict whether the building will be fitting in the future or not. Also, they will know whether the selected location is appropriate for building the required real estate.

Conclusion

Simply put, big data revolutionizes the real estate sector and enrich it with new capabilities. Real estate companies provide customers with better services, and customers get accurate and up-to-date information on demand. Big data has a great future, and its capabilities have tremendous potential.