Determining the value of a home depends on both art and science. With the increasing availability of massive amounts of housing data and the ability to analyze that information. Analysis of millions of pieces of disparate data informs nearly every decision made involving residential real estate.
Consumers, real estate agents, investors, mortgage lenders, insurance companies and other financial institutions need accurate valuations to inform their immediate decisions about investing in real estate and underwriting property. But big data has a deeper value than just estimating today’s property values. Housing data can be used to evaluate ongoing risks that could impact not only future property values but also the cost of maintaining and perhaps repairing properties.
Data is available to predict risk to properties from climate change, natural disasters, typical storms and environmental hazards such as exposure to chemicals from nearby industries or previous industrial use.
Crime data can be used for predictive evaluation of property values, data on development plans and even school district data can be factored in to estimate whether a property will increase in value over time. For real estate investors, homebuyers, appraisers, insurance companies, mortgage lenders and other financial institutions, a deep understanding of the risks associated with a property and a community is essential.