Homeowners may find it useful to understand how data analysis assists the real estate industry. Sometimes referred to as “big data”, the cross-referencing of wide-ranging statistics can reveal trends that give us insights that may have been undetectable only a few years ago. For example, it’s possible to identify neighborhoods and home types that show the strongest potential for resale, either within a specific community or on a nationwide scale, or identify the types of renovations that offer the most favorable impact on property values.
It’s also possible for insurance companies to calculate a region’s likelihood for frequent claims, or risk of exposure to natural disasters – factors that could affect a home buyer’s policy premiums. Similar analysis can dictate whether financial institutions have confidence in a property’s mortgage viability (and what risk a borrower might pose), which can have a direct effect on the ultimate lending rate made available. Perhaps the most positive real estate potential of data analysis is the ability to identify consumer profiles that match properties on the market, giving us new powers to bring together the perfect combination of determined buyers and motivated sellers.