'We see everything that happens': 5 real estate execs explain why data is changing how we live and work

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'We see everything that happens': 5 real estate execs explain why data is changing how we live and work

fintech real estate tech

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  • Real estate is easing into the digital revolution, with iBuyers purchasing homes in a week and VC money flooding into startups that add a tech twist to the industry.
  • Business Insider talked to executives at companies ranging from short-term rentals to commercial real estate brokerages about the ways data will change how real estate professionals do their job.
  • While all the execs said they are analyzing data to better understand markets and customers, they also flagged hurdles like small sample sizes, and still emphasized the importance of a human touch.
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While other industries are jumping into machine learning and artificial intelligence, and data scientist has been dubbed the best job in America, real estate still has a reputation for handshake deals and decisions made on gut instinct.

There may have been some truth to that reputation, but companies that revolve around real estate are quickly finding ways to adapt to a digital world. Where before documents only lived in a file cabinet, they're becoming digitized. Zillow, Redfin, and other iBuyers are closing on homes within a week of the original application. VC money is beginning to flood into "proptech" startups that marry real estate and technology.

The first step is collecting better data and finding ways to actually use it.

Business Insider talked to executives at companies ranging from short-term rentals to commercial real estate brokerages about the ways that data will change how we work and live, and how real estate professionals do their job.

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Still, many acknowledged that the process of capturing enough data to pull out legitimate trends can be cumbersome. Some say that for short-term rentals, at least, higher turnover may help produce more data compared to traditional house sales.

There are also worries about potential regulatory issues that could hem in growth of some startups and the data they can collect, as well as the ever-present challenge of selling people on change. And finally, some said that real estate still requires a level of human interaction and judgement that evades traditional data analysis.

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