Where to get real estate data

May 23, 2022

Image by Etadly via Pixabay

Thanks to advances in data analytics, every industry on Earth has undergone some degree of transformation over the last decade. By pairing the right data and analytical tools, individual entrepreneurs and businesses can create potent tools for enhancing their decision making and providing more reliable and in-depth assessments of their previous investments.

The real estate market is no exception to this. Real estate investors who incorporate data analytics into their decision-making processes before choosing where to invest their money can judge the value of investments more reliably. Everyone working in the real estate market, from novice investors to professional developers, can benefit from the power of data. However, the results will only be as good as the data itself. The question of where to get real estate data is just as important as how to use it.

How do professional investors use real estate data?

Investors and researchers have found numerous applications for data analytics within the real estate world. In recent years, data scientists have tried applying their analytical methods and techniques to data sets from a wide range of sources. This approach has led to some very interesting discoveries about how some industries and markets behave. Within the real estate market, one of the most significant contributions of data science has been the emergence of increasingly refined property price indices.

One of the most important questions for any real estate investor is "How much is this property worth?" People without any real estate experience are often surprised to learn how complicated the answer to that question often is. Statistical approaches to property valuations have been gaining traction for a while now, and they underpin the growing number of online platforms offering objective data-based property valuations around the globe. Some investors and businesses are using their own bespoke algorithms to provide statistical valuations of properties based on various data points available to them.

Real estate data isn't just useful for calculating the current value of a property. By tracking property values over a period of time, investors can identify market trends early and use these to inform their investing decisions.

Investors can also use data analytics to assess the performance of their portfolios in more meaningful and insightful ways. Instead of looking at the investment property in isolation, they can pull in data about comparable properties from the local area and beyond when assessing the performance of their investment.

 

What impact does real estate data have on investors?

Taking a data-driven approach to real estate investing can have a significant positive impact on an investor's portfolio. Of course, they still need to be careful about what data they use and how they use it; bad data or the wrong analytical approach can both have a detrimental effect on decision-making.

But, assuming that an investor is mindful of these facts and uses the data available to them correctly, they should find it much easier to make more informed decisions. For example, one of the most important figures for any property investor is the rental yield. A rental yield of 5-8% is generally considered good, but by analysing data from across the country, an investor could easily identify areas where the rental yield is even higher.

Greater access to real estate data and analysis tools has also helped reduce the barriers to professional investing. Individual investors can now identify some of the market trends and investment opportunities that used to be reserved exclusively for the biggest players in the market.

 

Where to get real estate data?

Where to get real estate data is an important question, but it's only half of the equation. A common complaint among real estate developers and investors in recent years has been that there's been a disconnect between data, which is easily accessible, and the tools required to harness it and obtain useful insights. It doesn't matter how much high-quality real estate data they have at their fingertips; if they can't analyse it quickly and efficiently, then its value is much more limited. To harness the full potential of big data in any industry, investors want a single tool or platform that receives a continual stream of useful data and also provides access to the tools required to analyse it.

Proverest aims to provide such a platform for the real estate market. By making it easy for investors at any level to compare opportunities and rapidly assess the value of prospective investments on the basis of relevant real-time data, we aim to support the democratisation of property investments and help create a level playing field for anyone looking to make property investments. Users can also find funding sources through our platform to raise capital for any ventures they're considering.

Before platforms like Proverest appeared, obtaining and analysing real estate data often required paying a data broker, who would provide investors with access to the data they needed. This system worked very well for big businesses and institutions with deep pockets. Not only could they easily afford the data broker's fees, but the financial barrier to entry this system created made it difficult for smaller investors to compete. The big players in the real estate market back then would have baulked if they'd known that the data they relied on would be available on-demand and at little to no cost to just about anybody within the next decade.

With platforms like Proverest putting real estate data and the tools to analyse it at the fingertips of any investor, it's never been easier to harness the power of big data analytics. Remember, the quality of the data you use to inform your decision-making will determine how successful you are. That's why using a platform with a proven track record for using high-quality data and providing a robust toolset for analysing it is a safer and more reliable option than gathering and analysing your own raw data from other sources.

Poverest does not provide investment or tax advice. Any information is provided to help you make your own informed decisions.

By the team at Proverest, Published May 23, 2022

Proverest Administrator

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