Mbition’s education manager for real estate offers big data tips for your real estate business.
By Richard J. Gallegos, DREI, CDEI
• Understanding how to use analytics in their real estate business can help real estate agents compete in the 21st century.
• Using available analytics can help real estate agents optimize their profession and work to benefit their real estate businesses.
I often describe data analytics as the recognition, interpretation, and communication of decipherable patterns that are discernible in facts, figures, and statistics. The term also refers to “translated data.” How can real estate professionals use analytics to benefit their real estate business?
In the world of real estate analytics and algorithms, the procedures for solving a mathematical equation often come together. The data for this equation is most often mined from Multiple Listing Services or similar listing data, sales updates or general reports, and overall geographic reporting often completed at the municipal level. These resources have the potential to help clientele understand more about baseline real estate variables, such as property values, lease potential, and even trends within a specified geographic locale. These data can likewise aid you — the real estate professional.
Predictive analytics, or the evaluation and interpretation of said data, can now be used to foresee possible future real estate trends and transaction potential. It is helping the real estate industry better understand transaction and market data to benefit the industry, agents, and consumers.
These resources have the potential to help clientele understand more about baseline real estate variables such as property values, lease potential, and even trends within a specified geographic locale. These data can likewise aid you.
Understanding how to use analytics in your real estate business will help you compete in the 21st century. Using traditional networking, recognizing trends in the field and working hard can all be used together in analytics.
Real estate licensees can utilize analytics in many ways to help their real estate business:
• Help the public decipher real estate data is now easy to obtain.
• Better understand community demographics.
• Improve bank and developer response times by having a large scale of open financial facts and figures.
• Include technology and business strategy in your business plan.
• Use analytical gathered intelligence to provide a communication platform for your clientele.
Remember, analytics and what is referred to as “big data” are changing the way real estate professionals, buyers, sellers, developers, and financial institutions think about property transactions. By using available analytics, you can optimize your profession and work to benefit your real estate business.
Richard J. Gallegos, DREI, CDEI, a licensed associate broker, is the education manager for real estate, Mbition. A licensed commercial real estate instructor, Gallegos has published and copyrighted 13 CRE course booklets. He is also a CRE instructor, has served as overseer on several CRE projects and consulted on many across the country.