“Data mining for the real estate agent”, Hervé Parent PBA – Property Business Accelerator

The data available through Open Data is a goldmine for professionals who know how to use them.

“Data mining for the real estate agent”, Hervé Parent PBA – Property Business Accelerator

The digitalization of the economy has generated gigantic amounts of information about people, their behavior, goods, exchanges, values ​​… This is called Big Data. At the same time, the Open Data policy has made several databases previously reserved for the Administration accessible to all.

Data Mining is the set of techniques that allow the exploitation of these databases and Big Data. Data Mining is an Anglo-Saxon term that can be translated as “data exploration” or “extraction of knowledge from data”. Specifically, it is a family of automatic or semi-automatic tools that allow analysis of a large amount of data. The goal is to find connections, anticipate trends and make decisions based on reliable information. Data mining is above all a decision-making tool, explains William Violet from Homiwoo. This is confirmed by Ludovic Gauvin, Director of Data at Yanport, whose job is to structure data and build relevant tools to help real estate agents make decisions.

Particularly real estate is concerned

The existing data useful for real estate agents relate to properties, prices, ads, people, territories … For people, we can know their gender, their age, their socio-professional category, but also their behavior, especially on the Internet and on social network. All of these databases respond well to the definitions of Big Data, they are very large, and Data Mining is necessary because their exploitation requires complex tools. The number of interesting real estate bases is growing: “in the last three years we have had more and more visibility on transactions,” says Pierrick Pretot, CEO of Le Prospecteur.

Know the values, look for mandates, conduct market research

The specific applications for real estate can be grouped according to three generic functions: knowing the values, looking for mandates, conducting market research.

Knowing the values, selling prices or rents makes it possible to make the appraisals more reliable, but also to offer online appraisals to identify the owners who have a real estate project. Searching for mandates, in addition to online estimates to generate leads, is done through analysis of behavior on the Internet or behavior databases. Of course, conducting market research allows you to know your area in order to better serve your customers, but also to publish rich, relevant and up-to-date content on a website, blog or social network.

The databases used are kept secret by the companies that run them, they are part of their business. But they all analyze the DVF file, Insee, Data.gouv.fr and the messages. Some have agreements with banks and insurance companies to be able to use their files. For William Violet of Homiwoo, there are three main application cases: capturing leads, professionalizing value statements, and performing market observatories to do SEO. For Ludovic Gauvin from Yanport, in the future we will also be able to use the building’s technical data, for example BIM, to refine the evaluations, and we will have advanced indicators by analyzing data from Google Trend.

The methods of analysis are very complex, and the teams include high-level engineers and mathematicians. One of the companies has entered into a collaboration with the École polytechnique to develop its analysis methods. The complexity comes from the fact that data is only interesting if it is crossed with other data. Pierrick Pretot describes the Data Mining process as follows: “The data is recovered by robots, APIs or in Open Data, it is then stored on dedicated servers, then processed to be readable and finally crossed with other data to speak.” The prospector picks up more than a hundred events or signals that are precursors or triggers of transactions.

Start-ups that are growing very fast

The companies that offer Data Mining to real estate agents are young start-ups with one exception. They are evolving rapidly and changing their service offerings for greater precision and to better meet the needs of real estate agents.

Start-up of data mining

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