Little by Little, big data is making a place for itself in day-to-day life in its use in processes that have become almost essential. One example of this is the success of the BBVA Valora tool that allows anyone to know the best price at which to buy or rent a house. Since it was launched in September, the tool has received over 500,000 hits, half of which by non-BBVA customers, which shows its widespread acceptance.
BBVA Valora can be used by mobile phone through the BBVA app or through the bank’s website. The information provided by this tool has great value for those thinking of buying a home given that by simply plugging in the exact address of the property, the tool provides purchase and rental prices as well as what would be a good negotiated price. The application also provides a report on the area or neighborhood where the property is situated, the number of properties for sale and the size of the property to be acquired.
The tool allows you to study locations and neighborhoods, produce reports on the number of properties for sale in specific areas, the type of property, the average price of housing and the average price per square meter as well as the average surface area.
BBVA Valora gives you the estimated price of specific houses
Big data for taking decisions
BBVA Valora uses big data technology to analyze a plethora of information sources to arrive at its calculations and produce its reports. The application consults official land registry figures, adverts for similar properties on sale in the area and other sources. In any case you have to bear in mind that BBVA Valora makes an estimate of the price with the view to helping the user negotiate the purchase or make an offer for a house, but this estimate does not replace the official valuation.
The tool represents a further advance in BBVA’s strategy of accompanying the customer in his/her most important financial decisions. In this case, BBVA Valora gives you an idea if you are on the right track in negotiations on the price of a house as well as if you have sufficient power of payment to undertake the acquisition.
Financing options
In this sense the new service carries out a simulation on what it would mean for the customer to finance the purchase. By plugging in annual income and the number of estimated years to finance purchase, the application will carry out a study on what the customer will need to pay on a monthly basis in the case of either a fixed or floating interest mortgage. This way the customer has an initial idea of the required cost of buying the property.
BBVA Valora not only includes the size of the mortgage but also factors in the 20% (or corresponding percentage) not covered by the home loan itself but also additional costs in the form of taxes and notary fees etc. The aim of this information is to allow the customer to analyze all aspects of the purchase decision in a simple way, thanks to BBVA Valora.