Real estate markets are prone to change at a moment’s notice. Nothing is certain, and prevailing trends ultimately determine the success or failure of sales and deals. In many cases, small local deals are irrevocably impacted by the status of international economies. For real estate brokers and developers, this poses unique problems by making it harder to anticipate valuation tendencies and propose acceptable transactions.
It should come as no surprise that the industry is increasingly reliant on real estate data analytics practices. By employing business intelligence, or BI, tools to make more accurate decisions, realty firms, investors and even home seekers stand to benefit greatly.
What Is BI?
BI consists of many different practices and techniques, but in general, it employs digital data gathering and analysis to gain insight into specific business decisions. For instance, a financing company might set up a computer application that tracks which of its loan customers pay their bills on time and use the results to come up with more workable lending terms or improved collection practices. Because BI is highly customizable, organizations and individuals can decide exactly what kind of key performance indicators, or KPIs, they want to monitor.
Most BI tools and software suites are designed to keep track of complex data sets that may be quite large. By organizing complicated information, helping users pick out vital facts and making it easier to visualize variable trends on custom charts, BI lets people gain clearer insights.
Helping People Find Properties
BI offers huge advantages for those who want to analyze real estate data. For instance, someone who performs a search for a condominium for rent on ZipMatch may also want to see how their chosen Manila neighborhoods compare to those in the rest of the city.
Tools that let home seekers chart floor areas, amenities and other critical factors could help them make decisions they feel more comfortable about. Listing properties using platforms that embrace data is a good way to provide potential buyers with more information that might influence their choice.
Simplifying the Selling Process
BI tools are also directly beneficial for sellers and brokers. Market data is expansive, so it’s very difficult to pick out important trends without some kind of assistance. Unfortunately, not everyone can afford to hire a dedicated team of professional property market analysts.
BI tools that track prior industry performance statistics, such as sales in a given area, help sellers set asking prices that are actually competitive. They also make marketing easier.
Most sellers know how they personally feel about their neighborhoods, but this may be difficult to communicate effectively. Obtaining reliable analytics figures on lifestyle KPIs, like the percentage of people who commute to work from different neighborhoods or how well local schools perform, can make it easier to convince buyers that a property is worth considering.
Will business intelligence change the way real estate transactions evolve? From the looks of things, it already has, and it’s unlikely to stop soon. The only question is whether you’ll be on board to take advantage of the benefits.