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Many real estate firms are turning to business process outsourcing (BPO) to streamline market analysis. Real estate BPO services leverage specialized expertise and technology to help improve scalability and simplify workflows without incurring additional costs.
These benefits make the practice widespread. A survey showed that 96% of businesses rely on BPO providers for support in data analytics.
If you’re considering real estate outsourcing but are unsure where to start, this article is for you. It explores the benefits of engaging in this practice and touches on the tasks BPO teams can cover.
Why should you outsource real estate market analysis?
Partnering with a real estate BPO provider gives you access to specialized talent and cutting-edge tools for market analysis. These capabilities allow you to quickly scale processes, streamline workflows, and increase accuracy at a lower cost than operating in-house.
BPO’s many benefits make it a widespread practice across businesses. According to Deloitte’s 2022 Global Outsourcing Survey, 96% of their executive respondents leverage BPO services for data analytics.
To better understand the advantages of outsourcing real estate market analysis, let’s first answer the question: What is BPO?
This modern strategy involves subcontracting specific tasks to a third-party team. How outsourcing works is that the BPO team utilizes its resources to accomplish outsourced activities on behalf of client companies.
How exactly does BPO in real estate help you with market analysis tasks? Let’s discuss its benefits in detail:
1. Access domain expertise
Market analysis is vital in every real estate process to inform decisions or identify industry trends. This task involves more than just crunching numbers. It requires professionals with a deep understanding of the market and the ability to interpret data meaningfully.
Real estate BPO providers let you tap into a global talent pool of experts in market analysis, typically virtual assistants (VAs). Assisting real estate firms with various tasks remotely is what the real estate VA does.
One of the reasons to hire a real estate VA specializing in market analysis is to take advantage of the following expertise:
- Market-specific insights (e.g., demographics, lifestyle preferences, architectural styles, local industry and job market, regulations and incentives, and development plans)
- Data analysis proficiency (e.g., identifying hidden patterns, connecting data points, and translating analysis into actionable recommendations)
- Staying ahead of the curve (e.g., anticipating potential market disruptions and keeping up with the latest market research techniques)
2. Leverage advanced technology
Market analysis is a tedious task; analysts are prone to burnout, which can lead to inaccuracies and delays. By partnering with a real estate BPO provider, you can access relevant tools to simplify routine tasks.
Here are some technologies real estate BPO teams use to optimize market analysis:
- Artificial intelligence (AI) and machine learning (ML). These tools’ algorithms identify complex patterns and relationships between unrelated data points.
- Predictive analysis. This advanced algorithm helps predict market movements by analyzing historical data and current trends.
- Natural language processing (NLP). This technology analyzes textual data, extracts sentiment, and identifies trends from articles, social media posts, and online reviews.
- Web scraping. These advanced tools gather data from various online sources, providing a more comprehensive picture of the market beyond traditional real estate databases.
- Data automation. It automates data collection and processing to let you react quickly to market changes and capitalize on opportunities.
- Cloud computing. Cloud-based technologies help you store and manage data online and handle massive datasets and complex calculations.
- Data visualization tools. Raw data can be overwhelming. These platforms transform complex data sets into clear, concise charts, graphs, and maps.
3. Improve scalability and agility
Hiring and training new data analysts takes time and resources. You might be stuck waiting for your team to catch up before you can confidently progress with new projects. Additionally, growing your in-house team to accommodate a one-time project isn’t practical.
Real estate BPO services allow you to scale your team of market analysts as needed to meet seasonal fluctuations or growing needs. Providers have a readily available pool of VAs and professionals they can deploy as your firm expands.
BPO companies also offer tiered service packages. You can choose a level of service that aligns with your project objectives and growth requirements.
Unity Communications’ real estate case study perfectly demonstrates this benefit. The client firm could not keep up with surging customer service transactions. However, it overcame the challenge by partnering with a reputable BPO company, eventually enjoying spare time and resources.
4. Increase cost saving
Building an in-house market analyst team requires significant investments, including personnel, software, and training. With outsourcing, you only pay for the services you utilize, avoiding unnecessary expenses.
Deloitte’s 2023 global shared services and outsourcing survey proves this benefit. According to the report, 83% of respondents achieved their cost reduction goal by engaging in the practice.
Here are other ways real estate outsourcing can help you save on costs:
- Reduced hiring costs. BPO providers cover the budget for job posting, advertisements, screening, and onboarding processes.
- Lower labor expenses. Outsourcing companies typically hire staff from countries with lower living expenses, which translates to lower wage and salary ranges.
- Minimized overhead. Outsourcing market analysis entails remote work since it can be done anywhere with the internet, thus reducing costs for maintaining an office space.
- Fewer technology investments. As mentioned, outsourcing teams carry market analysis tools that you can leverage at a package price.
What tasks do real estate BPO teams handle for market analysis?
Outsourcing teams have the expertise and technology to efficiently manage various market analysis tasks, such as:
- Market trend analysis. Real estate VAs can provide insight into pricing fluctuations, vacancy and absorption rates, tenant demographics, and average rental yields.
- Risk assessment. BPO market analysts can help identify potential risks associated with specific investments, such as crime rates, environmental issues, and zoning codes.
- Property valuation. With their market analysis tools, outsourcing teams can provide you with comparative market analysis (CMA) reports and income and cost approach valuation.
- Customizable reporting. Real estate BPO market analysts specialize in creating reports that match your needs and preferences and prioritize key market indicators relevant to your goals.
- Return on investment (ROI) projections. Using market data and financial modeling, real estate VAs develop realistic forecasts of your profit. They consider projected property appreciation, rental income, and operational expenses.
Delegating these tasks to qualified professionals allows you to devote more time and resources to higher-value activities that increase profitability. This ultimately gives you a competitive edge and positions your firm for success in the fierce real estate industry.
The bottom line
Outsourcing real estate market analysis is more than just a cost-saving measure. It’s a strategic investment in your business’s future. By partnering with a reliable BPO provider, you gain the expertise, technology, and scalability necessary to perform related activities accurately and efficiently.
Outsourcing helps you gain a competitive edge, make informed decisions faster, and propel your firm toward long-term success. Lastly, you can enjoy all these benefits within budget.
Let’s connect if you want to learn more about how outsourcing streamlines real estate market analysis.
