More than ever, technology is transforming the way the real estate industry works. Big data, specifically, has made the real estate industry more transparent for everyone involved. That includes brokers, investors, buyers, and sellers. The advancements offer huge opportunities to those willing to make changes. Below are three ways big data has transformed the industry.

Real Estate Finance and Big Data

The contribution of data from private and public sources is helping lenders and investors to manage risk, analyze profitability and make better, more informed decisions. Companies like CrediFi use an algorithm that analyzes data collected from a variety of sources to predict whether an endeavor will be successful or not. This data can also be used to examine the financial information for buildings—including loans and investments.

Big Data’s Impact on Property Sales

The smartphone apps, View the Space and VTS, use collected data to inform realtors, lenders, and investors whether a property is receiving positive feedback from potential clients. VTS helps sellers identify the ideal selling price for their property. For example, if 80 percent of prospective tenants see the asking price and do not click, that tells you something. It captures all the information directly.

Building Management Changes with Big Data

The rise in technology is also making building management far easier and more efficient than in years past. Managers have put sensors around their buildings and receive live information that helps them manage utility bills and electricity bills. For example, broken fans or air conditioning units may use up more power than is necessary, and sensor systems can help building managers identify the problem.
This process is not cheap. Installing sensor systems in a home or office requires money and planning. The changes in the long run, however, will outweigh the initial costs. By being able to detect whether a building’s lights, fans, or vents are on when no one is present in the building can significantly reduce waste and unnecessary spending.

At Vanguard Title, we know big data is the future of real estate. We work directly with realtors, lenders, and sellers to facilitate the closing process. For more information about our services, please visit our homepage.