Smarter insights for real estate developers
Deep market knowledge is critical in order to sell real estate faster and smarter. The main question is how to acquire such information. The most progressive real estate developers use technology to provide insights on who the buyers may be and how to best approach them. We had a chat with Dr. Walid Mustapha, VP Data Science at Marketer, about how real estate developers can utilise artificial intelligence to predict where home buyers can be found, what they want, and what they may be willing to pay.
- Real estate developers don’t need to hire expensive data scientists and tech resources to achieve their goals. Rather, by using data-driven and user-friendly technological platforms, they can achieve the same at lower cost, says Walid. He refers to a strongly visible trend where the smartest real estate developers acquire insights on their customers’ desires, and use these to develop real estate projects that meet and exceed their expectations.
- The recipe is all about data: What data you have, which data real estate developers can acquire, and how it can be transformed into valuable insights.
Insights from large data pools
Marketer’s own data science department offers its customers unique value by delivering automated forecasts and analyses facilitated by large data pools in combination with machine learning.
- The insights help our customers work smarter. We use exploratory data analysis to identify the potential for value creation in the data, and then we develop commercial products that create added value for our customers in the market they are operating in.
The data sources consist of Marketer’s own database with historical data from marketing, sales and transactions across the second-hand and newbuild markets, which is integrated with data sources from many public services. This data is presented to machine learning models that become increasingly more precise as the volume of data grows.
Data can be extracted to give an overview of what has been sold at which price, the selling time, and results from marketing efforts - both from Marketer’s products and services, and from other properties in the same area, as well as which factors have impacted the total selling time and the pricing of the real estate project.
- We can also present an accumulated overview of factors currently affecting the market. This can provide indicators as to whether the prices should be increased or not. All of this makes it possible for real estate developers to control the risks in the sales process while maximising the value of the project.
Use machine learning to set the right price for properties
The data team at Marketer has developed many cutting edge machine learning models, and more are on the way.
- It includes everything from being able to estimate the value of a property to finding the answers to what elements in an ad that captures the interest of the audience, and language analysis to reveal which formulations in an ad that make people click on it. This insight makes it possible for the seller to improve its offerings in real-time.
The data is relevant both in real-time, but it also provides smart insights for the next sales or the planning of future real estate projects.
- The data can, when combined with machine learning, give estimates of what the right pricing will be, the optimal sizing of the units, and how they should be marketed to secure as many leads as possible. Based on that, the AI system can estimate the optimal portfolio for real estate developers.
The continuous development of new and exciting features is embedded in the platform M360, Marketer’s end-to-end solution for real estate developers. These are innovations of high value throughout the entire process of real estate transactions.
- We are for example making a tool which enables our customers to run campaigns through the Marketer platform, where they get automated suggestions on which images to use, as well as text and description suggestions, resulting in ready-to-use drafts for the ads that will give the best response from the audience.
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