Tech Trend Catching on in Real Estate: Data Driven Investing

Tech Trend Catching on in Real Estate: Data Driven Investing

Real estate investing, though quite popular among investors, proves to be a source of concern for many of them. Buying residential and commercial properties in new housing and commercial projects has turned sour for the investors in many instances. This has forced real estate investors to do their research and homework before carrying out a real estate transaction to increase their chances of success. Technology has come to the rescue of these investors by providing data that helps in eliminating speculation from their investment decisions.

 

From the days of research to just a few clicks

In days gone by, a real estate investor needed to do a lot of work to evaluate the prospects of a real estate investment. He needed not only access to the MLS and the data depicting rental income from properties in the area but also many other factors. These included

  • Sundry expenses like the fees of the HOA
  • Occupancy rate in the building,
  • Taxes
  • Insurance
  • Tool to calculate mortgage
  • Charts showing sale prices of comparable homes in the area

A detailed study of all these documents takes up lots of time. But this is not the end of the misery. The investor then needed to put all the indicators in a spreadsheet to come to a probable value of the property before taking a decision whether to invest in it or not.

 

All the numbers presenting the whole picture

But today, an investor has the advantage of big data investing. With a few simple clicks online, the desired numbers are there in front of the investor to make his decision easier and based upon authentic information.

 

If one takes a look at other industries, data has been a hot trend everywhere. Real estate has been a little slow in this regard but it has caught on the imagination of the investors today. Though it cannot replace the experience and the acumen of the realtors, it certainly helps in making real estate investments accurate and less risky than they were when based solely upon speculation and past results.

 

Data investing has made even simple and innocuous data like the age, gender, employment, income levels, marital status, number of children, and other demographics very important for the realtors. All this data helps a realtor in focusing upon his target group of customers, cutting down drastically the time and effort that he earlier spent on reaching out to his prospects

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