Increasingly powerful predictive data will help agents understand more about real estate buyers and sellers and communicate more easily, says NAR data specialist, Todd Carpenter.
Mobile technology is set to radically change the way buyers around the world search for real estate, a top analytics expert believes.
Smartphones and the ‘Internet of Things’ (IoT), which is using and transferring data over networks through a device and without human-to-human or human-to-computer interaction, will transform the way people search for real estate, says Todd Carpenter.
Evolving mobile technologies will allow consumers to assemble personal, intuitive real estate searches without the guidance of a web marketing portal, according to the National Association of Realtor’s Managing Director of Data Analytics.
IoT and predictive analytics are helping the real estate industry better understand transaction and market data, which will be used more to predict buyer and seller behaviors and trends in home preferences and neighborhoods. This includes highly-personalised home searches including proximity to work, public schools and restaurants.
Mr Carpenter says, “Realtors should educate themselves about ‘big data’ and be knowledgeable of how it’s being collected through mobile devices.
“Buyers will increasingly use their smartphone during the search process – often times before first talking to an agent. Realtors who adapt and embrace ‘big data’ will add considerable value to their relationship with clients.”
“A buyer could eventually ask an agent about how a home functions – such as how well it heats or the amount of electricity it uses during certain parts of the day – and receive an immediate answer with detailed graphics and analysis.
“That information may not be readily available to buyers today, but it’s coming soon as more individuals use their smartphone to connect their home to the internet,” he told the delegates as the annual NAR conference in New Orleans.
“Everything from transportation to the healthcare industry are helping individuals make informed decisions about their lives based on data collected from their smartphone. These advances in mobile technology will make it easier for Realtors to communicate valuable information to their clients during the home buying and selling process.”
In 2013, the NAR launched a Predictive Analytics group that examines and analyses member and customer trends from a variety of data sets to help the association’s members make better business decisions and meet the needs of their clients.
Constance Freedman, Vice-President of Strategic Investments and Managing Director of the Second Century Ventures Fund for NAR, who conducted a discussion on the impact of technology on the industry says, “Technology is having a transformational effect on every stage of the real estate transaction, from listing to financing and even post-closing.
According to the NAR 2013/14 Technology survey published in June, Smartphones and iPads are the technology tools Realtors most aim to buy up to summer 2015, although more than one third of those surveyed planned to purchase no smartphone, tablets or similar devices during that time.
By Adrian Bishop, Editor, OPP Connect