Data quality: A game changer in the real estate business
Real estate is one of the first things that comes to mind when considering a less volatile investment option. Everyone wants to own a property with the highest return, the most value, and the least amount of risk. To do so, one must sift through massive amounts of data to determine whether the property is worth the money invested.
Manually curating and verifying whether the data is up to date for analysis is time-consuming and error-prone. As a result, implementing AI-powered data quality tools can benefit all real estate stakeholders.
According to a Deloitte survey, data quality is one of the challenges in using AI/ML technologies identified by commercial real estate respondents. Assume the appraiser evaluated the residential building and unknowingly mistook the living room for an extra bedroom and quoted a high monetary value when, in fact, the price is low because it lacks a spare bedroom. Then your portfolio becomes stale and incorrect. An automated data quality platform can assist the industry in gathering trustworthy information in a matter of minutes, resulting in a profitable business.
How is the real estate industry leveraging data?
In the real estate industry, most of the decisions like property value and rents were based on intuitions and legacy systems which increase the probability of error in the decisions and reduce the profitability of the stakeholders in the real estate business.
With instant access to data, real estate brokers can evaluate the property value precisely, offer clients a personalized experience, and find the right buyer. With high-quality data analysis, it will be a win-win situation.
Data-driven real estate businesses will uncover opportunities and bring transparency into buyers’ wants. For example, If the seller wants to know about the ROI, instant access to information such as property value, the market trend, and forecast will give the customer clarity on the right time to sell the property. Every stakeholder in the real estate business can derive maximum value from the proper analysis of high-quality data.
The chaos of poor-quality data
As we all know, many data points exists in the real estate industry. For example, if we want a detailed commercial property analysis, we need information from multiple sources such as crime rate, fire safety, security, HVAC, roofing, etc. The issue with these data is that they are not kept in a standard format and are not checked regularly, increasing the chance of outdated data.
So, if a real estate agent starts manually curating relevant information and standardizing it, the property will be sold before the portfolio is ready. Realtors will benefit from instant access to accurate location-based information to provide the best property and offer to their clients. Top real estate players have already begun to use data quality tools to create a compelling portfolio and offer data-backed recommendations.
How do data quality tools skyrocket your real estate business?
When real estate market data is utilized correctly, it can yield more actionable insights on innovation and profitability. Let’s look at how a data quality platform can help the real estate business.
Accurate property valuation
The price of the property is the primary game changer in this business. The current market status and future trends play a significant role in evaluating property value. Customers will only budge if the price is reasonable, so property valuation is critical. Assume you want to buy land to start a new retail business. You would need information such as demography, economic condition, crime rate, etc. So, aside from the square foot of the land, all of these factors influence the value of the land.
The buyer will lose money if the appraiser provides incorrect information about any factors. All information about the property must be current and valid to make confident decisions. Manually scoring all of the data to support your customers’ decisions is a time-consuming and exhausting task. With automated data quality platforms like Freda, you can instantly obtain any data you require about the property, such as its age, condition, and location, and provide detailed insights to the customer.
Forecasting the market trend
Have you ever been in a situation where you have been eyeing the property for a month, and then the price suddenly rises, and you miss out on the property? If you do not have an up-to-date database with current crime rates, climatic changes, and business closures, you may miss out on a sudden increase or decrease in property value. Unlike other industries, the real estate business exhibits a growth pattern, and it is essential to identify it.
Correlating various data about the locality provides a detailed picture of the property over time. Gentrification, for example, may be indicated by a consistent upward trend in people’s spending capacity. Market forecasts help you get the property before its monetary value rises. Uncovering data trends may appear complicated, but you can become an expert with access to reliable data.
Boosting the marketing strategies
The real estate industry is a people’s industry. It is critical to approach as many customers as possible with the appropriate proposal. Everyone will become a prospect for a real estate agent eventually. People are always looking out to sell or buy their current home. To create a persuading proposal as a real estate agent or broker, you need a clear picture of the client’s financial strength, preferences, and property details.
High-quality data not only helps you determine the value of the property but also helps you identify the right customer for the property. You can easily target your ideal customer with customized marketing strategies once you’ve identified them.
With the massive amount of data in the real estate business, it isn’t easy to verify and analyze the data and gain traction. However, with the right data quality management platform, you can gain instant access to any trusted information. Freda, an advanced and robust data quality platform, can assist you in accelerating your business at an affordable price. Join us for a free demo today and discover how Freda can simplify your data quality journey.
Originally published at https://xtract.io/blog/data-quality-a-game-changer-in-the-real-estate-business/ on November 7, 2022. Check out our blog to read more articles and follow us on Twitter or Facebook.