The real estate industry has seen its ups and downs over the past few years, but advancements in technology are seeking to make things easier. The use of software, data, cloud technology, and artificial intelligence has seen more implementation in the industry. As a result, the market size for real estate software will expand at a CAGR of 9.7%, and will be worth $18.66 billion by 2028.

As real estate companies continue to seek improvements in productivity and performance, data is proving to be of incredible value. Much progress still needs to be made to integrate this emerging technology fully, but it’s clear that it will become a major fixture in the industry. Here are some ways data has already made its impact:

Improved property appraisals

A traditional property appraisal is a long process that often struggles to combine all information. As a feature from Maryville University on data analytics in accounting notes, advanced techniques help firms capitalize on the massive amounts of data they collect. This information can significantly reduce the time involved in processing the property’s value. Data analysis can then be used to find information on previous appraisals, market trends, and prices of surrounding properties to construct a more detailed and fair review. It minimizes the chances of overselling or undervaluing a property, potentially encouraging buyers on the fence.

Enhanced customer experiences

People looking to hire a real estate company’s services will be searching for relevant experience to go with it. Without the proper knowledge or information, knowing how to serve these customers best will be difficult to discern. Writer and content strategist Tom Slipkus emphasizes that real estate customer relations management (CRM) software increases the efficiency and productivity of a company, which helps build customer trust. Data from CMR software, social media, and other platforms can provide actionable insights on how you can improve your performance and deduce the needs of your target market, enhancing their experience with a company. It helps provide personalized suggestions and offers at a faster rate, making it easier for them to conduct business with a real estate company they can trust.

Precise risk mitigation

A big part of data’s use comes with its ability to make analyses that can better understand the history of the property or house, reducing the unknown factors that may impact the value. It can help with factoring in previous renovations, the property’s conditions, and the property’s age, so sellers and potential buyers won’t experience unexpected issues in later stages.

Faster access to information

Finding all the information about a potential new home and the area it is in can be very time-consuming and inefficient. This can lead to frustration on the buyer’s end and a loss of a sale for real estate businesses. Data can help find the necessary details of the property more quickly and comprehensively. AI chatbots can be a big help in this aspect, as a customer’s query can be answered immediately using the data it has been fed. It keeps information seeking in one place so that it doesn’t have to be tedious.

The rise of data and data analytics has become an ever-growing aspect of the industry. Access to this information has become a guiding light for the customer and seller experience, making long and tedious processes more streamlined and efficient for all parties. For more related insights, check out our post called ‘How Technology Has Changed Real Estate’ on the Dwela blog.

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By: Relena Julissa