HOUSINGNEWSREPORT
of new seller disclosure rules or more comprehensive pre-acquisition property inspections, every property will become more transparent as real-time performance data becomes an expected element of every transaction. Second, both historical and real-time property data will continue to be integrated more directly into customer workflows making the information front-and-center to users. Whether you’re a consumer visiting a real estate portal, a lender logged into a loan origination system or an insurance adjuster using an underwriting or claims platform, everything you need to know about that property will be embedded directly into the application for easy consumption. Third, more important that the data itself is the story hidden inside the data and extracting these stories, patterns and correlations is what data analytics is all about. Ultimately, the reason humans consume information is so they can process it to make wise decisions. Humans are innately good at this when the information being consumed is limited and simple; which is rarely the case in real estate decisions. Given the massive volume of data that needs to be processed for wise decision-making, people are rapidly exploiting analytic engines to separate the signal from the noise and, in some cases, automate the entire decision-making process. These analytic solutions are growing more complex and accurate by the day and will continue to do so.
And finally, the business of supplying critical property data will shift towards a Data-as-a-Service model because of the superior experience this model provides the end user. In most cases, users prefer not to deal with ingesting, cleansing, updating and warehousing massive real estate databases to accomplish their goals. A much better scenario is one where data and analytic needs can be satisfied on demand and without incurring the heavy costs associated with internal data warehouse infrastructure. Outsourcing the work to a firm that specializes in providing instant and reliable access to data will allow the customer to re-allocate more resources towards their core mission and, simultaneously, realize an economic benefit resulting from the service provider’s costs being distributed across their entire customer base. This rapid increase in transparency is impacting real estate transactions and making the asset class more easily tradeable. When combined with future generations of buyers who may not place the same emotional value on real estate as our parents did, we’re not far away from a meaningful portion of purchase transactions having similar characteristics to purchasing 100 shares of Apple or a new BMW; fast and low friction.
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