What is Big Data and how can it help real estate brokerage? In this article I will address this “revolution” and how we can benefit from it. It is essential to follow the evolution of time.
In real estate mediation, decisions are traditionally born from professional experience and based on past facts and trends. The way in which immense and dispersed information is collected and processed in this sector, and which is interconnected to this sector, is still very diffuse, which nowadays, with the accelerating need for relevant information, poses risks to decision making. who is or is involved in this area. It is not enough to have big data technologies for the real estate sector, it is necessary to know how to cross-reference and interpret data that can help or harm real estate professionals, depending on how they are treated and by whom they are treated when talking about market or consumer trends. it is unthinkable not to have access to these and not use them to build value and, of course, better decisions. Also read: How many buyers will be able to pay a commission in Portugal?
But what advantages does Big Data bring?
The first major advantage of this technology is the ability to interpret a large amount of data at once, at a significantly short speed. More time to dedicate to activities that depend on and involve the human factor!The second, the ability to analyze unstructured data that comes to us or that can be collected from various sources such as email, text documents, social networks, etc. The scope of the analysis is increased and data becomes relevant information for assertive, safe and fast decisions. The third, the ability to link data that can help us interpret trends of occurrences or behaviors that can help to visualize and adapt to future situations. For example, through data analysis, I can follow emotional manifestations of customers that arrive from various sources of information. Allows you to diagnose in advance trends or dissatisfaction situations so that I can buy time to approach or neutralize them before the client thinks about choosing another solution or offer. Read also: Real Estate: If you were already a Broker in 2012, you know what to do, right?
And for real estate?
Big data can improve the way properties are raised and promoted by mediation. One of the great impacts that big data brings to real estate is the ability to perceive the small, yet crucial, differences between countries, cities, zones, neighborhoods and even zones within each neighborhood. It helps to define the offer values and characteristics in a much more assertive way not only in general, but in the specific, for being able to cross sales or even purchase prices with other factors and specificities that influence an assessment of value such as demand, building infrastructure and surroundings, mobility, security, cleanliness, lifestyles area, etc. Who wouldn’t want to analyze buyers’ preferences, budgets and even their level of commitment to potentially close a deal in a single place where I knew the data was aggregated and processed with relevance (quantity) and accuracy (crossed and filtered)? I think the answer should be consensual, many, if not most! Big data-based analysis tools that are built with agents and agencies in mind can collect data from engines search and digital advertising for help refine your audience and pre-qualify relevant buyers. Indicators such as mortgage pre-approval, credit scores and any authorized public records that indicate past consumer behavior are invaluable to construction of an increasingly refined pre-qualification. Again, good for both sides. You save time and focus on the really possible solution. In the future, I believe that the same can be done for potential sellers using data that allow for a forecast of price behavior and potential supply and demand with acceptable levels of accuracy for construction of strategies and support in decision making with relative predictive security. For example, using big data it is possible to collect data and assess the financial situation of each geographic area or customer cluster and refine it to the individual customer in order to understand what is your current or future purchasing capacity. We can even go further and cross-reference with data obtained from other sources to perceive behaviors, socioeconomic trends, preferences or other correlatable data that can help build a financial solution to create conditions for the purchase or sale of a home that adapts to the current and future lifestyle of each group or person. You can also develop a promotion and product based on this same information. Read more: Get ready to make a foolproof home purchase proposal
Big Data, has arrived and is coming in force
These tools are changing the way major players in the sector do business and make decisions. They are increasingly relying on data and digitalization of the mediation process and if you don’t know how to keep up with them, you can run the risk of not being on an equal footing with the growing majority, not because they do not understand the mediation market, but because they are not using the tools that will make them more competitive, fast and assertive. Data grows exponentially every day and if we know how to analyze and exploit it, we can get information about the behavior of people or the market that is precious, concrete and relevant to be one step ahead of your needs and to know what we can offer you. Being able to analyze at a micro and refined level is a precious help for any sector and also for the real estate mediation that find in this way of working a solution to make decisions. But it is very important to realize: data only works when you have critical skills and professional experience to do this and to achieve it, there’s nothing like being on the ground every day in contact with real people! Also read: How to choose which house to buy? “Real estate is my life and my life is dealing with people.” Living in Lisbon and working in Portugal, Spain and Italy, Massimo Forte is above all passionate about real estate, a business he considers to be for people for people. With more than 25 years of experience in the largest real estate companies, he is now dedicated to consulting, training and knowledge sharing as one of the largest Real Estate Influencers in Portugal.