If you want to gamble, you take a modest amount of money down and play a few games. You don’t gamble with a sizeable down payment, significant mortgage debt, ongoing taxes, and maintenance costs.
Yet, that’s the way things were, by necessity, in real estate. Before the modern proptech boom, it was nearly impossible to leverage actionable, accurate insights into the housing market. A consumer could look at superficial data like comparables or neighborhood demographics to get some sense of an attractive opportunity. But by and large, you had to gamble with your gut.
In this article, let’s explore how modern technological advancements help empower buyers (and sellers) to identify profitable opportunities.
Read: Location, Location, Location: U.S. Manufacturing Boom Has A Real Estate Problem
Big Data Analytics to Find Up-and-Coming Hot Spots
The real estate industry was sitting on a mountain of usable data. I just didn’t know how to use that data. But recently, we’ve seen a sharp rise in the quality of big data analytics.
Big data refers to large amounts of fast and varied data. These data volumes are far too large for any human or basic computer program to analyze, but it’s a straightforward job for machine learning and AI programs. With big data analytics, the average consumer can holistically evaluate their real estate options and pinpoint up-and-coming neighborhoods for investment. You just have to find proptech platforms that use big data in their listings and search functionalities.
Big data real estate analytics is a vastly complex mechanism – too complicated to explain in a short article, unfortunately. For those interested, read McKinsey’s white paper on big data in real estate.
Better Real Estate Agents, Better Opportunities
As a real estate consumer, your first line of defense against a bad deal is still the real estate agent. A decade ago, pundits speculated that real estate agents might go the way of travel agents – replaced by listings sites and other technologies. But agents still have tangible value – at least the good ones.
Proptech platforms like Nobul help you find the good ones. Before, finding a real estate agent meant soliciting family for recommendations. Now, Nobul has perfected the process by leveraging full-transparency realtor data and an AI algorithm to match buyers with the best possible agents.
As CEO Regan McGee explains that, “Prospective home buyers are armed with real, valuable information when they use our platform.” He shared in an interview with Superb Crew that “They can ensure they have found a solid real estate agent whose work is in-line with their values.”
Real-Time Housing Market Indicators
“You have to play the market” is an oft-repeated mantra of investors and real estate magnates. But before the current digital era, “playing the market” wasn’t an accessible proposition for most. You could track the daily newspaper hoping for insights; otherwise, market conditions weren’t publicly or readily available.
Now, consumers can find real-time housing market indicators (also called “market conditions indicators”). These tools calculate the changes in supply, demand, interest rates, economic growth, demographics, etc., to inform consumers what kind of market they’re entering — e.g., buyer’s, seller’s, balanced. It’s an incredibly streamlined way for consumers to identify when they should buy for maximum value.
If you’re in the mood to gamble, consider buying a lottery ticket. On the other hand, if you’re in the market for a new property, use the tools and platforms above to pinpoint profitable opportunities.
Featured Image: Credit: user7814140 Via Freepik