How to Use Parcel Data in Real Estate
The real estate industry was one of the first to adopt Big Data at the beginning of the information revolution. As McKinsey reported in 2018, real estate investors and developers were turning to data sources including ‘resident surveys, mobile phone signal patterns, and Yelp reviews of local restaurants [to] help identify “hyperlocal” patterns’ which informed their decision-making.
Some of the most valuable information to a real estate industry player is data about land parcels. This sub-category of geospatial data enables a whole range of real estate-related use cases. Before we dive into them, let's look at exactly what parcel data is.
A land parcel refers to a specific piece or portion of land defined by distinct boundaries. These boundaries can be physical features like roads, rivers, or survey markers. They determine the extent and limits of the land. A land parcel represents a distinct unit of real estate that individuals can own, sell, or develop independently.
Parcels are a fundamental concept in real estate and land management. The information associated with a land parcel, such as its size, location, and permitted land use, is often recorded in public records for legal and administrative purposes.
This data, including parcel boundaries, property lines, and ownership history, has become a game-changer for real estate agents, investors, and developers. Parcel data affects how today's real estate professionals approach property deals and projects. Where do they source their data? There a numerous top parcel data providers on the market today.
Now that we know what parcel data is and from whom you can buy it, we'll explore the main applications of parcel data in the real estate industry.
Parcel data has become a crucial tool for realtors, real estate investors, and property developers. It's information about the parcel boundary, property lines, land valuation, and other data attributes. It provides valuable insights that can be applied in various scenarios. Here, we explore eight key use cases for utilizing parcel data in the real estate industry.
Understanding the parcel boundary is fundamental for realtors when they're processing property transactions. By accessing a precise parcel dataset, real estate professionals can ensure accurate property line delineation. This not only facilitates smooth transactions. It also minimizes potential boundary disputes, providing a solid foundation for transparent and trustworthy dealings.
For property developers, parcel data is a goldmine for assessing land valuation. Analyzing factors such as parcel size, location, and historical transaction data enables developers to make informed decisions about potential project sites and urban planning strategies. By considering land valuation through parcel data, developers can identify areas with growth potential. This helps them make strategic investments that align with market trends.
Realtors utilize parcel data for comprehensive market analysis that sets them apart from competitors. By understanding the competitive landscape, real estate professionals can tailor their approach, identifying opportunities and differentiating their services. Parcel data allows realtors to benchmark prices, evaluate property usage trends, and develop targeted marketing strategies to attract potential buyers or sellers.
For both real estate investors and realtors, parcel data can offer insights into home ownership patterns within specific regions. By analyzing ownership histories and demographic data associated with parcels, professionals can tailor their marketing efforts to target specific homeowner profiles. This personalized approach enhances client engagement and increases the likelihood of successful transactions.
Property developers can optimize their projects by using parcel data to assess current property usage. Understanding the existing zoning regulations and land use patterns allows developers to propose projects meeting local guidelines and community needs. This not only streamlines the approval process but also enhances the overall feasibility and success of the development.
Parcel data enables real estate professionals to create targeted marketing campaigns. They can segment potential buyers or tenants based on property preferences, ownership history, and other factors. From here, they can craft personalized marketing messages that resonate with their audience.
Investors managing diverse property portfolios can optimize their holdings using parcel data. By assessing land values, property usage, and potential for development, investors can make informed decisions about buying, selling, or upgrading their real estate assets.
Parcel data facilitates a deeper understanding of zoning regulations, ensuring that real estate professionals adhere to local guidelines. This is vital for securing necessary permits, avoiding legal complications, and maintaining the integrity of a project.
To sum up, parcel data is a very powerful tool for real estate professionals. It provides crucial insights into parcel boundaries, property lines, land valuation, and more. By leveraging this data, realtors, real estate investors, and property developers can make informed decisions, gain a competitive advantage, and contribute to the sustainable growth of the real estate industry. Compare parcel data products and providers on Datarade Marketplace to discover how it can elevate your real estate strategy.
