If you’re a property owner, you’ll know that the price and potential value of your property govern all of your major moves and what you can do with the land that you own. The first step to understanding this is to find out the exact potential value of your property, and, as you’ll read in this article, technology can be a major stepping stone in making it easier to identify that exact value.
1- Geographic Information Systems (GIS)
Geographic Information Systems (GIS) are tools that use maps and data to understand property values based on location. They help by showing things like terrain, how close properties are to amenities, and what neighborhoods are like. Many city planners and commercial real estate appraisal firms rely on GIS to make smart choices about building projects and investments. With GIS, they can see how different factors affect property values in specific areas.
This helps them decide where to build and how much properties are worth. By using GIS, they can better understand property values and make better plans for cities and investments.
2- Artificial intelligence
You may not be surprised to hear that artificial intelligence can be used in property evaluation since this technology is quickly taking over almost every major industry in the world, but its role here is more involved than you may think. Where online evaluation is less involved, evaluation using AI is more in-depth because these tools have adaptive learning, getting better at reading and processing data the more they work for clients.
AI models process a ton of data regarding property, including sales records, the records of homes and other buildings in the vicinity, and social information, including the growth of a demographic and how much the local population is expected to expand with time.
3- Aerial imaging
Aerial imaging is a tool that is now indispensable and considered absolutely vital for performing evaluations, and helping people find out the exact value of any property. As previously mentioned, a large chunk of the value of a property or home comes due to its surroundings, like whether it’s located in a good neighborhood or one with little to no development or population. This information cannot be manually retrieved unless you go on foot from home to home, documenting their condition and how many people live there, which is not realistic; hence, aerial imaging has emerged as the preferred method of getting this vital information.
4- Virtual reality
Assessing property is an involved process that requires someone to go through your entire property meticulously, but this step of the process can be made far more convenient if you’re able to integrate virtual reality or augmented reality. This will allow people to remotely enter and assess your home, helping you get a quicker assessment and dollar value for your home or commercial building, and the ability to get assessments done remotely no matter how far away your agent is.
5- AVMs
AIs are an important tool to evaluate a lot of property, but if you want the most involved and detailed tool on the market, you’ll find yourself working with automated valuation models, or AVMs, that are specifically designed and constructed to model each home or building individually, using cold hard math in the form of algorithms to calculate how factors like your building’s condition and history will affect its final value, as well as many other factors, ranging from recent crimes nearby, population density, commercial interests nearby, and much more. Since these models are built from the ground up for this purpose, you’ll be able to get a far more accurate assessment than you ever could get anywhere else.
Conclusion
Technology has been exploding in the past few decades, gradually getting integrated more and more into daily life and all kinds of industries, and today, this impact can be felt in the real estate world, too. The right tech allows you to easily find out how much your land or property is worth, and, as a result, you’ll be freer than ever to make your plans, sell or negotiate with your land how you want, and be more informed as a landowner than ever.
