For the most part, the real estate industry is not renowned for its technology. This nature could however soon disappear. Data analysis is transforming the way real estate companies, customers and financial institutions do business in this sector.
Create additional value
Traditional property data becomes a commodity. Anyone with an internet connection can access basic information about the market and properties. Real estate companies need to add value through highly personalized solutions.
The data analysis could potentially transform the way the real estate sector responds to the needs of its customers. For example, what can a real estate company do when a client wants to move to new premises? Traditionally, the company considered factors such as budget, preferred location, and space to provide a list of recommendations. But what if the company can also help the customer to meet other business challenges?
Nowadays, one of the main challenges for companies is to recruit and retain the best talent. The customer would probably prefer a location that would be best for all employees. Employees can enter data from their home & 39; places, movements throughout a typical workday. This data can then be used for analysis, such as spatial mapping. The result is a solution for office spaces with optimized location for employees & 39; daily commute. This new office would potentially bring the added value of attracting and retaining the best talent at the customer.
Make smarter decisions
The real estate market has an extensive dataset of millions of properties and potential homebuyers and sellers. In addition, there are many metadata for each property and customer. By digging into this raw data, companies will have the advantage over the competition. Armed companies advanced data analysis can remain competitive by using the data to find useful information that allows senior managers to make better strategic decisions about investing, financial management, sales and marketing, contracting, and so on.
The financial side of real estate has already adopted data analysis to help investors and financial institutions make more informed decisions. Banks today have a much better idea of the value of foreclosed properties than before. Risk assessment algorithms are progressing to provide a more accurate assessment of properties.
Data analysis makes it possible to obtain unpublished customer information. He is able to give a clearer picture of who buys what, when, where, why and how. More importantly, he can predict who will buy or sell his house in the near future. These capabilities could radically change the way real estate companies approach their customers. Instead of trying to reach a wide audience, companies can target specific people who are most likely to be their customers.
Empower individual customers
Advanced analysis benefits not only real estate companies but also individual clients. This creates an unprecedented level of transparency and data accessibility for buyers and sellers. For example, homeowners might receive information about their properties & 39; potential value, as well as the future trend.
Real estate companies that always do business using traditional methods may feel intimidated by such transparency. However, buying a house is among the most expensive and personal transactions that people make while they are alive. Companies that can make the process easier and more informative are more likely to win customers and generate sales.
Increase visibility online
Internet has become the preferred destination of individual customers when searching for real estate. As a result, agents and real estate professionals need to be more visible online, in addition to aggressive sales tactics and aggressive advertising campaigns. Data analysis allows agents to understand what visitors are doing when they search online. More importantly, current advanced analytics can produce real-time, actionable information that allows for almost daily adjustment of organic or paid effort.
Business Intelligence (BI) or Enterprise Performance Management (EPM) applications with built-in analytics capabilities help organizations get the most out of their data. If you&39;d like to learn more about how Business Intelligence and Data Analysis could transform your business, download the white paper titled "Switching Responsive to Proactive: What Business Intelligence Means Today".