Innovation: Big Data and the Real Estate Industry

Innovation: Big Data and the Real Estate Industry

Open data or the “big” data movement has been generating a lot of interest lately in the business community, as companies are increasingly turning to the vast source of information available to help develop strategies, aid in sales and to create a competitive edge. Over the past year tech giants like Google, IBM, and Twitter have acquired companies that work and specialize in the big data sector and it is apparent that many more companies are following suit. As such, over the next year it will become increasingly important for businesses to take advantage of the open data movement, which many speculate will heavily disrupt and innovate a number of industries, notably the real estate industry.

With the advent of companies like Trulia, Zillow and Red Pin in the real estate sector, it is clear that there is a high demand for quality data to enhance listings, provide detailed community data, boost pitches, and to even generate leads, with an ever growing list of possibilities. The use of big data appears to benefit agents greatly as realtors selling homes draw on troves of data to provide information about the neighborhood, comparable houses, crime statistics etc.. Even home hunters have come to increasingly expect a detailed level of information from realtors; a result of the significant growth in the utilization of open data and the increased flow of information.

While open data is only just beginning to gain significant traction in all sectors, it is signaling a new direction for the real estate industry by empowering agents with better information and more meaningful insights. As big data proposes that through accessing and decoding patterns and valuable material jumbled up in countless piles of real-estate information their holds a possibility for remaking the industry. It is clear that this not only holds a significant potential for benefiting agents and homebuyers, but also stimulates innovation in the sector, as realtors increasingly adapt to the new technological era ushered in by this demand for more knowledge and information.

It is evident open data will change the industry as Glenn Phillips, CEO of Lake Homes Realty says

“it will become increasingly difficult for individual real estate agents to be visible to consumers, both online and offline, as the consumers follow the larger data sources online”.

Only further clarifying the fact that most agents will be either forced to utilize big data or suffer falling behind in an industry that is continuously pushing forward.

The future still remains unclear, but one thing is evident, big data is here to stay, fueling growth in all sectors, while holding the possibility for empowering industry, agents and consumers.

How would you utilize big data as a real estate agent? Let us know in the comments below!

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