Using Big Data When Deciding Where to Buy a Vacation Rental Property
To start with, Big Data is the collection of data in huge volumes. Think terabytes and petabytes. The data grows exponentially with time. It is so large and complex that special systems have been designed to store and process it efficiently. There is evidence now that basing a business decision on computer-based data is more effective and efficient than those generated by humans.
What Can Big Data Tell You?
The use of big data allows businesses to see patterns and trends. Data-driven decisions allow businesses to know much sooner which products and services will be successful. In the real estate world, being first to market is a huge advantage.
Big data allows real estate companies to spot trends in market value based on such things as the amenities a property has to offer, its geographic location, increases or reductions in population, etc.
A Few Benefits
Some other benefits include providing faster workflow by advising appropriate and profitable properties; reducing the risk of choosing the wrong property; customizing and filtering properties for their customers, and improving market strategies.
Additionally, by being able to more accurately project future property values, big data can predict insurance values for prospective buyers. Online real estate services are doing the best job of presenting potential customers with big data-enhanced analytical tools, leading to increased profits.
Use in Smart Homes
Big data is also moving into smart homes, helping to increase the level of automation available. The ability to have automation throughout the home is something that appeals to younger buyers. Being able to advertise your vacation rental investment as a smart home is a great marketing advantage.
How To Analyze the Data
Don’t get left out in the cold by failing to get help with analyzing all of the data available. There are professional data science consultants available to help your business learn which tools will serve it best for getting meaning out of the data. Most likely you won’t need a full-time consultant. Bringing in an outside consultant for a period of time will be more cost-effective.
What is Data Science?
Data science itself is a multi-faceted practice. It encompasses the fields of mathematics and statistical analysis and data engineering, advanced computing knowledge, along with an ability to present the data in everyday terms.
Where Big Data Comes From
Sources of big data can be such things as the search terms used when performing an internet search, or the data collected on personal gadgets like step counters and fitness trackers. Social media interactions and email marketing are additional sources of data. Data science helps to take these widely varied sources and organize them into understandable information.
As the real estate industry becomes more globalized, increased competition for emerging technologies and customer demographics are causing the industry to diversify away from traditional paths. Companies are realizing just how important technology is going to become to growing their profits.
Technology in Real Estate
Technology can help to streamline and automate systems and processes, helping to reduce error. It can also assist with automating buildings to create a more individual experience for the tenants. With technology, you can have flexible meeting rooms, project rooms, shared workspaces, social walls, and virtual windows. The list is nearly endless.
Adopting such innovations, however, is not cheap. And it’s this expense that is preventing more companies from adopting the high-tech solution of big data. Bringing increased awareness of the advantages of big data into the industry is a struggle for companies marketing technology.
Big Data and Vacation Homes
When acquiring vacation homes, big data could benefit real estate customers by pinpointing the geographical areas that would be most suitable for them. The companies would benefit from being able to project which homes and areas were due to an increase in value and which would be the best future investments by being sold for a low rate in the current market.
Big Data is moving into all facets of business, including real estate. It’s proving its worth by providing reliable information to users. Companies can now make decisions based on statistical and analytical projections and models instead of relying on information based on data from the past. Lenders can now assist potential clients by being able to see which areas are going to show the biggest increase in popularity as vacation destinations.