Big Data Transforming the Game for Real Estate Agents
With the expanding adoption of internet-enabled devices such as smartphones and tablets, the working capacity of the individual continues to climb at an exponential rate. Leading this technological flexibility are cloud-based solutions and a massive influx of web-based applications. Together, they put big data in the eager palms of many professionals wanting to get more done in less time. And, because of this, real estate professionals are cashing in on the opportunity to revolutionize their industry.
In fact, big data is such a “big” deal in the real estate sector that NAR (National Association of Realtors) recently created two new positions within the organization: a Managing Director of Data Analytics and a Data Scientist. Combined, they will pioneer the new Predictive Analytics group. There are a few goals this Predictive Analytics group would like to accomplish. First, they want to resolve complex housing industry issues. Second, they want to create new tools for real estate agents, as well as state and local organizations. Ultimately, the tools will enable better decision-making processes for said individuals and organizations (i.e. Business Intelligence).
Whether it’s a major corporation or an independent freelancer, big data is the backbone of business intelligence. In either case, possession of big data alone isn’t enough. Rather, deep analysis brings out the powerful insights and eventually, if handled correctly, business leads. If manufacturing those insights isn’t financially feasible for smaller real estate entities, they have a couple options: purchase third-party tools or share data through co-ops. Regardless, at the end of the day it’s a numbers game that revolves around procuring an endless stream of leads (consumers interested in buying a home). It doesn’t end there; big data can be used to establish more targeted leads, as well.
So, what is a co-op and how does it function?
In January of 2013, the Bonita Springs-Estero Association of Realtors and the Cape Coral Association of Realtors joined forces with the Naples Area Board of Realtors and the Realtor Association of Greater Fort Myers. Collectively, they helped CoreLogic introduce what is known as the CoreLogic MLS (multiple listing service) Data Co-op tool. With this tool, agents can successfully share and access listing information for a host of properties across virtually any region. CoreLogic claims that from the more than eighty multiple listing services in existence, real estate professionals can access a swath of over one million active listings.
What does all this mean for the future of big data in the real estate sector?
Deciphering data to develop an effective plan when approaching viable sellers and buyers will significantly change the way real estate agents perform. Even shedding light unto the simplest of insights can profoundly impact both the smallest and largest of businesses. In doing so, agents can better customize their services to meet consumer demands, uncover new ways to establish leads and expedite closings. Put simply, the early adopters will see noteworthy increases in year-over-year returns. For those who dismiss the opportunity, their adaptive competitors will quickly wash them out of the market.